Due to the importance of the real estate market in Gurgaon, property trends in this city hold considerable significance for developers and buyers alike. One of the latest trends in this city’s realty market is the growing prominence of the affordable segment. This segment is expected to push the growth of the realty sector in 2021.
The demand for affordable housing in Gurgaon has been witnessing a noticeable rise and so is the number of projects under this segment.
The stagnancy
Initially, in 2020, the Indian real estate sector has been going through stagnation and a financial crisis. However, this situation had built up over the recent years due to a fall in housing sales. Specific government initiatives aimed to uplift the economy in the long run resulted in a decrease in the residents’ purchasing power. Many developers had been focusing on luxury housing, the segment which got hit the worst during this period of crisis. More and more buyers started to seek new affordable housing projects In Gurgaon, while the supply of luxury properties exceeded the demand.
The regrowth
The crisis was only made more acute by the problems posed by the pandemic. However, it came as a blessing in disguise as the government turned its attention to the real estate sector, which happens to be one of the significant contributors to the Indian GDP. Several amendments and policies followed, providing the ailing industry with a multitude of boosts. For example, the ongoing projects received an extension of deadlines, the stuck projects received assistance, and various funds were provided. The reduced repo rates resulted in lower home loan interests, making it easier for the property buyers to own new homes.
The prominence of affordable housing
When the sales of luxury properties were dwindling, many developers started to launch affordable housing in Gurugram to maintain liquidity. The market trends clearly showed that the demand for such properties is high and urged them to venture into this segment. Previously, rental housing used to be very high in demand among the professionals migrating to Gurgaon for employment. However, the pandemic showed people the importance of living in their own homes, causing people to seek affordable homes for sale.
About 70% of all the projects launched in the July-September period across the major Indian cities fall into the affordable housing category. The developers building affordable homes In Gurgaon also reported recording increased sales within a short period. With various builders utilizing the digital platforms to attract buyers, the property sales in Gurgaon rebounded back to almost the pre-lockdown levels.
