Affordable housing supply drops 54% in Tier 2 cities in Q1 2025

New Delhi [India], June 15 (ANI): The supply of new affordable housing in India's top 15 tier 2 cities witnessed a steep decline of 54 per cent in January-March quarter (Q1) of the current year, indicating a shrinking Focus of developers on the affordable housing segment.
The affordable housing segment is defined as the properties priced under Rs 50 lakh.
Real estate data analytics firm PropEquity observed in its latest report that housing supply in India's top 15 tier 2 cities fell by a whopping 35 per cent to 30,155 units in January-March period of 2025, with 48 per cent of the launches in the Rs 50 lakh-1 crore price range.
The supply stood at 45,901 units with 36 per cent of the launches in price range Rs 50L-1cr. in Q1 2024, the PropEquity data shows.
Bhubaneshwar witnessed the highest decline at 72 per cent to 772 units in Q1 2025 while Nashik saw the least decline at 2 per cent to 2466 units.
The report further added that Eastern and Central India, with 68 per cent fall in new launches in Q1 2025, saw the highest decline, followed by 55 per cent in Northern India, 28 per cent in Western India and 26 per cent in Southern India.
The seven State Capitals in the top 15 tier 2 cities saw 43 per cent decline in supply in Q1 2025.
Samir Jasuja, Founder and CEO, PropEquity said, 'The decline in supply is a result of cautious approach and shifting priorities by developers. Financially robust developers with strong balance sheet look to launch premium homes in order to increase their profit margin. As a result, supply of homes under Rs 50 lakh has seen a consistent decline due to its unviability.'
'Meanwhile, homes priced between Rs 1-2 crore have not only seen a 17 per cent Y-o-Y growth in supply but also its supply share increasing from 18 per cent to 23 per cent,' Jasuja added.
As per Jasuja, with home loan rates hovering around 8-8.5 per cent, the recent reduction of 50bps in repo rate by the RBI will further drive down the home loan rates, thereby providing an impetus in the Rs 50L-2cr priced homes in tier 2 cities.
'The tier 2 cities present a huge opportunity for corporates and developers as massive infrastructure development and government's focus on making these cities as growth drivers will enable end-user demand,' he added.
Housing units priced under Rs 2 crore accounted for 95 per cent of the total supply in Q1 2025, up from 87 per cent in the same period last year.
The supply of units priced under Rs 50 lakh, more than halved to 7124 units in Q1 2025 as against 15420 units in the same period last year. Its share to total supply fell from 33 per cent to 24 per cent in Q1 2025.
Similarly, supply of units priced between Rs 50 lakh and Rs 1 crore dipped by 12 per cent and its share rose from 36 per cent to 48 per cent in Q1 2025.
The supply of units priced between Rs 1-2 crore dipped by 17 per cent and its share rose from 18 per cent to 23 per cent in Q1 2025.
Supply of units priced Rs 2 crore and above dipped by 73 per cent in Q1 2025 and its share dipped from 13 per cent to 5 per cent in Q1 2025.
State Capitals saw 90 per cent drop in supply of units priced under Rs 50 lakh and 13 per cent drop in supply of units priced between Rs 50L-Rs 1 crore in Q1 2025. However, supply of units priced between Rs 1-2 crore rose by 31 per cent, the report added. (ANI)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

34 minutes ago

• Business Standard

Bengal may lose ₹25 cr GST as SBI shifts key unit from Kolkata to Mumbai

Kolkata faces a potential state GST loss of nearly Rs 25 crore this fiscal year as the State Bank of India (SBI) moves to relocate its Global Market Unit (GMU) from Kolkata to Mumbai, a civil society organisation has claimed. This proposed shift has drawn protests from civil society groups like Bank Bachao Desh Bachao Manch (Save Bank, Save Nation Platform), describing SBI's decision as "arbitrary and opaque". "The GMU and associated units contribute significantly to state revenues via GST, nearly Rs 25 crore this fiscal year. Additionally, over 70 contractual staff stand to lose their jobs," Bank Bachao Desh Bachao Manch joint convenors Biswaranjan Ray and Soumya Datta said in a complaint. The State Bank of India recently stated that decisions regarding the opening, shifting, or rationalisation of branches and offices are part of an ongoing business process based on evolving operational and administrative needs. This explanation was provided by the Deputy General Manager (Operations), SBI Corporate Centre, in a letter dated June 11, 2025, which responded to a previous complaint from Bank Bachao Desh Bachao Manch to the President of India in March. The Manch found SBI's reply to be "generic and bureaucratic", and "devoid of substance or justification". The group also noted that it neither addressed the core issues raised nor provided a rationale for the displacement of strategic banking operations. The Manch then complained to the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) under the Department of Administrative Reforms and Public Grievances. Protestors have highlighted several concerns beyond the potential GST loss, including the disregard of historical and legal commitments, specifically a 2008 agreement between the bank and its federations to retain the GMU (which evolved from the erstwhile Foreign Department) in Kolkata. The GMU's shifting is part of a "pattern of systemic marginalisation" of Kolkata's and West Bengal's institutional roles within India's banking landscape, the forum claimed. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

United News of India

39 minutes ago

• United News of India

Telangana Dy CM emphasizes boosting non-tax revenue

Hyderabad, June 22 (UN) Telangana Deputy Chief Minister Mallu Bhatti Vikramarka, who chairs the Infrastructure and Capital Sub-Committee, directed officials to give focused attention to increasing the state's non-tax revenue and optimising budgetary allocations. He made these remarks during a high-level review meeting held at the Dr B R Ambedkar Secretariat, attended by Ministers Uttam Kumar Reddy, Komatireddy Venkata Reddy, and senior officials. During the meeting, the Deputy CM emphasised that new welfare schemes worth Rs 33,600 crore are being implemented without halting existing schemes of the previous government. However, he pointed out that no revenue was received from Outer Ring Road or Excise during the 2023–24 financial year, highlighting the need to explore alternate revenue channels, especially non-tax sources and central funds. He instructed officials to rationalize departmental budgets, ensuring equitable distribution of funds. "Some departments are receiving more funds than needed, while others are underfunded. This imbalance must be corrected, and allocations should reflect actual needs and priorities," he stated. Bhatti Vikramarka also ordered the immediate completion of pending major infrastructure projects across all constituencies, stressing that rationalization and the completion of spillover works must be finalised within ten days. He underlined that revenue-generating sectors need special focus, and that all expenditures must be realistic, logical, and need-based. Calling on all departments to work with a public welfare mindset, the Deputy CM said that only balanced departmental development will ensure comprehensive growth for the state. The meeting was attended by Chief Secretary Ramakrishna Rao, Finance Principal Secretary Sandeep Kumar Sultania, and senior officials from various departments, an official statement said on Sunday. UNI VV GNK

Time of India

an hour ago

• Time of India

Sambhv sets IPO price range, values company at Rs 2,400 crore

MUMBAI: Sambhv Steel Tubes, a manufacturer of electric resistance welded steel pipes and structural tubes, has priced its initial public offering (IPO) between Rs 77 and Rs 83 a share, allowing the company to raise up to Rs 540 crore. The IPO, which is a combination of fresh issue and offer for sale, will be open for public subscription from June 25 to June 27. The promoters, Brijlal Goyal and his family, will sell Sambhv shares worth Rs 100 crore in the IPO. At the upper price of Rs 83 per share Sambhv's market capitalisation will be just over Rs 2,400 crore. The proceeds from the fresh issue, totaling Rs 440 crore, will be used to repay borrowings and for general corporate purposes. As of March-end 2024, Sambhv had a debt of Rs 347 crore. In FY24, the company, based in Raipur, made a profit of Rs 82 crore on revenue of Rs 1,286 crore. In addition to the steel pipes and structural tubes business, Brijlal Goyal and his family are also involved in the plastic business. However, the steel business under Sambhv is their largest venture. Sambhv is a name created by combining the first letter of the names of six family members. The 'B' in Sambhv stands for Brijlal, while 'S' and 'V' represent Suresh and Vikas, who are Brijlal's two children. Suresh serves as the chairman of Sambhv, while Vikas holds the position of MD. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now