NCR’s affordable real estate market appears to be experiencing an impressive recovery, despite the general pessimism unleashed by the pandemic. This conclusion can be drawn from the latest forecasts by real estate consultants Anarock and other industry experts that around 50,000 affordable homes, including 16,000 in Gurgaon, will be ready for purchase by the end of this year.
Currently, there are around 1.8 thousand affordable homes (less than Rs 40 lakhs) in various stages of construction in NCR. In Haryana, the Department of Urban and Rural Planning (DTCP) has issued around 110 affordable housing licenses since 2014, with a large turnout in Gurgaon and Sohna. Although some 80,000 units have been sold, so far only 22,000 have been delivered.
Industry experts say that with the opening of markets and the normalization of business, the residential real estate market appears to be returning to normal.
Anuj Puri, president of Anarock, said that at NCR, a total of 1.16 housing units are scheduled for completion in 2021. “Of these units, at least 43% are in the affordable segment, 39% are in the mid-segment, 13% are in the premium segment, and 5% are in the luxury segment.
Pradeep Aggarwal, Director of Signature Global Group, agreed. “Rapid growth in places like MG Road and Cyber City has had a ripple effect driving development in new areas like New Gurgaon, Southern Peripheral Road (SPR), and Sohna. The increasing focus of the state government on affordable housing is helping these neighborhoods grow, as more than 40% of the units cost less than Rs 50 lakh. “
Surinder Singh, director of GLS Group, said that so far only 22,000 affordable housing units have been delivered out of roughly 80,000 units sold in the last seven years. “We estimate that around 50,000 units will be delivered by the end of 2021,” he said.
Vikas Garg, Deputy Managing Director of MRG World, said many people felt that the challenges related to income generation during the second wave of Covid-19 would hurt the housing market, causing consumers to put off buying homes. “However, the affordable and middle-income housing segments are seeing a lot of movement,” he said.
For his part, the city planner, R.S. Batth said the department is closely monitoring the progress of affordable housing projects. “Approximately 10 developers have received notifications regarding the reason for the delay in the completion of 12 such projects in Gurgaon.”
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