Premium Homes Supply Dips 36% In Top 9 Cities

Mumbai: Supply of homes upto Rs1 crore has dipped 36 per cent in top 9 cities in 2 years, says a report by PropEquity.

Talking to Bizz Buzz, Garvit Tiwari, Director & Co-Founder, InfraMantra says, “The demand and supply mismatch in housing under Rs1 crore demands corrective measures from the government which includes incentivisation of both developers and homebuyers. The government must enhance the limit of affordable housing to Rs1 crore in metro cities so that more people can avail the benefits and help drive housing market.”

Furthermore, this move will also prompt developers to increase supply in this segment which in the last few years have declined. Along with this, the government should also look at enhancing tax deduction on home loan interest from Rs2 lakhs to Rs5 lakh considering the sharp increase in housing prices.

Vijay Harsh Jha, founder and CEO, VS Realtors says, “Real estate market continues to display strong growth in the luxury segment. However, the fall in supply in homes below Rs1 crore is a cause of concern.”

Even the loan off take in this category has seen a decline. Considering the huge migration that is happening across top cities, the supply has to be enhanced through government intervention.

India’s top nine cities, where majority of Indians migrate for jobs, is staring at a housing crisis. As developers shift focus to luxury housing, the supply of homes in the affordable and mid-income category (priced Rs1 crore and below) has dipped by 36 per cent in the last two years, from 3,10,216 units in 2022 to 1,98,926 units in 2024 with NCR, Mumbai and Hyderabad as worst performers, the study revealed.