Despite the outbreak of the second wave of Covid and frequent semi-lockdowns in many states, 2021 is expected to witness growth in the housing segment. But, the covid-19 waves have impacted the share of affordable housing in overall launches as per recent reports that covid reduced the share of affordable housing to 20%, around 7,230 as of quarter 2, 2021.

Affordable housing’s share of new launches dropped further around 26% – 98,380 units between January to June this year. The premium housing segment had a 25% share while the mid-segment had 39 percent. In the post-pandemic, affordable housing share has dropped to 30% in 2020 and 20% in Q2, 2021 from the 40% in 2019. However, the affordable housing share supply led the overall supplies in the pre-covid-19 period.

According to the Anarock report, a property consultant, a new affordable housing supply was launched in the top 7 cities after the government started incentivizing this segment after 2014 to back support the “Housing for all by 2022”. The demand for affordable housing remains high but there is now a plethora of unsold stocks across cities. NCR and MMR, a well-known realty hotspot had the higher share of affordable housing supply at 52% of total units of 7,230 launched in this category.

With the second wave of the pandemic in 2021, organizations all over the globe are adapting to the new normal and are working from anywhere. This is resulting in excessive demand for affordable houses and workspaces with ticket size of Rs 35-50 lakh in Tier 2 and 3 cities/towns. This is one the causes for growth in prices and demand in those geographies.

Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “Impact of COVID-19 brings the slowdown in the Indian real estate sector. But to some extent we can see that this situation may remain the same until the lockdown is in effect but will have a lasting effect on the economy as project deliveries shall be delayed. However, since real estate is the only long term and stable investment asset compared to the other volatile options, steady investment growth is anticipated once things get back to normal.”