Affordable housing segment which has the maximum share in the of witnessed a significant drop in new launches in the financial year 2023-24. According to GujRERA, Gujarat saw registrations of 443 affordable housing projects in 2023-24, which was 578 in the previous year, a drop of 23%. Ahmedabad also witnessed a drop in new affordable housing projects with 149 new registrations in 2023-24 against 201 in 2022-23, a decrease of 26%.
Demand for houses above Rs 50 lakh have increased significantly in 2023. In 2023-24, 443 new affordable housing projects — residential and mixed-use — were launched in the state. This was 578 in 2022-23, and 650 in 2021-22, the GujRERA data revealed.
Houses up to Rs 45 lakh and 90 metres are considered affordable houses. The trend was also observed in Ahmedabad, where fewer affordable housing projects were introduced to the market. There has been a surge in the sale of homes valued above Rs 50 lakh, and the increase in property prices can be linked to rising construction costs and land prices too.
Despite the higher costs, the market for homes above Rs 50 lakh is growing, suggesting that buyers are willing to invest more in their housing choices. Experts believe the industry might need to reassess its strategies to cater to the evolving needs of consumers while balancing affordability.
