Gurgaon is popularly known to be a hub of premium and luxury properties. However, the affordable segment is now ready for explosive growth, with high pent-up demand and increasing supply. The need for Gurugram affordable housing has been high ever since Gurgaon grew from an under-developed rural region to a modern city and a thriving commercial hub. However, there has been a constant shortage of affordable homes in this city. The problem has been intensifying in recent times, with the land rates on the rise.
What led to the high demand for affordable housing?
Considering that a significant section of the Indian population consists of low-income and mid-income groups, pocket-friendly housing options are always high in demand. However, in Gurgaon, it exceeded the available stock of affordable properties by a considerable margin, and several factors are responsible for this:
- Gurgaon is primarily a commercial hub with a rapidly growing corporate sector. The job opportunities offered by various leading companies here attract young professionals. Most of them are financially restrained and seek reasonably priced options.
- Due to the increasing shortage of urban land in Gurgaon, the property prices are steadily rising. The high land rates result in increased production costs, which prevents the builders from offering homes at pocket-friendly prices.
- As affordable housing projects do not usually generate high-profit margins, most developers try to avoid this segment. This has been a significant hurdle in the development of affordable housing in Gurgaon despite the high demand.
- Most of the affordable housing projects built in Gurgaon are either located in the rural outskirts or do not offer adequate amenities due to the cost restraints. As a result, not many homebuyers purchased these properties, and the shortage of affordable housing did not witness much relief.
Why is the affordable housing segment expected to grow?
The affordable housing segment in Gurgaon has already started to grow. Under the affordable housing policy launched by Huda, homebuyers can now purchase pocket-friendly yet sophisticated residential units at strategic locations.
With Gurgaon developing at a rapid pace, properties are continually undergoing appreciation. The potentially high profits have been attracting many home investors to Gurgaon, many of whom have a limited budget. With the supply of affordable homes in Gurgaon property market increasing, so are investments.
- Many of the homebuyers had been waiting for the right time. i.e., for properties to become more pocket-friendly. They have now found their opportunity, with several projects being launched under the policy by Huda. Thus, the fence-sitters would now buy homes in Gurgaon too.
- The inventory of unsold properties in the premium and luxury segments is starting to stagnate, with more and more properties getting added to this list.
- To maintain their cash inflows, several developers are now venturing into the affordable segment. More of these affordable housing projects in Gurgaon are expected to come up short.
Thus, the affordable housing segment undoubtedly has considerable potential. Most of the hurdles that were preventing the growth of this segment are now starting to get resolved.
How is the policy by Huda promoting affordable housing?
The affordable housing policy by Huda is aimed at providing the general masses with adequate housing, and it achieves this in several ways:
- Every property covered by this scheme is priced affordably for most homebuyers.
- The new affordable housing projects In Gurgaon offer homes at easy payment plans extending over long periods.
- Obtaining loans for these properties is easy, too, as the nationalized banks offer 90% home loans for these projects.
All these factors result in the explosive growth of the affordable housing segment in Gurgaon this year.