Whatis ailing Gurugram’s affordable housing segment?
MANY CHOICES The demand for affordable housing in Gurugram is quite healthy, owing to the currently attractive prices which fit the budgets of most of individuals looking for options in this segment
The real estate market of Gurugram - previously called Gurgaon - is primarily known for its glitzy office buildings andluxury housing projects which accommodate the C Suite and upper management category buyers who work in these buildings. A fact that is not so often talked about is that Gurugram, like any other modern city, depends on the services of blue collar and even EWS category citizens to stay viable. Unfortunately, Gurugram’s performance in terms of providing housing which is affordable to such people has been less than stellar in the past.
Approximately 30,000-36,000 affordable housing units are under construction in Gurugram, and it is expected that 55,000-57,000 units will be up for sale by the end of 2017, including units close to completion. The demand for affordable housing in Gurugram is obviously quite healthy, owing to the currently attractive prices which fit the budgets of most of individuals looking for options in this segment. Also, builders are now offering assured quality, timely delivery and features such a free maintenance for 5 years.
Nevertheless, there is no denying that ayawningdemandsupply gap in EWS category housing continues to plague the city. The reason for this is not hard to identify - for a long time, developers were investing solely in projects where apartments where the price bracket ranged from Rs. 60 lakh upwards to Rs. 1 crore, thanks to the attractive margins in this bracket. However, the highest demand has been in the affordable housing segmentwithin the price bracket of Rs. 20-50 lakh, and EWS hous- ing actually pertains to units priced between Rs. 3.5-12 lakh (depending on location and unit sizes).
It is only in recent times that developers have abandoned the elusive fat margins dream and begun launching projects catering to the affordable housing demand in the city. This will eventually result in a narrowing of the demand-supply gap in Gurugram. However, the EWS category of housing has its own dynamics.
RERA WHICH PUTS THE ONUS OF TIMELY PROJECT COMPLETION ON DEVELOPERS HAS NOT SHOWN AN IMPACT IN THIS AREA YET