Skyrocketing Costs Push Affordable Housing Out of Reach for Builders

The share of affordable housing in India's total real estate sales has significantly declined, dropping from over 38% in 2019 to just 18% in 2024, according to Anarock Property Consultants. 

This trend is attributed to escalating construction costs and reduced profit margins, making affordable housing projects less appealing to developers. Consequently, many builders are shifting focus to mid-range and premium segments, where returns are more lucrative. This shift raises concerns about the availability of affordable housing options for low-income buyers, potentially exacerbating housing inequality in the country.

Source: Financial Express