About 67% of the housing demand in the region is for houses priced below Rs 25 lakh, while only 22% of the housing supply falls within this budget range.
Despite strong demand for affordable housing, residents of the Mumbai metropolitan area are seeing a lack of affordable housing, a new report from Knight Frank and NAREDCO has revealed.
The ‘Brick by Brick: Reimagining Affordable Mumbai’ report found that 67% of housing demand in the region is for houses priced below Rs 25 lakh, while only 22% of supply is in this area. budget range, which shows a wide gap in the demand and supply of affordable housing. Despite only 20% of housing demand for houses above Rs 50 lakh, more than 44% of housing supply is for high priced residences.
“Mumbai’s biggest challenge is providing housing for its people. Unfortunately, the majority of the city is forced to live in substandard housing options in the city center or outlying areas. The estimated demand over the next five years is 8,50,000 homes, which will be a daunting task if a proper strategy is not put in place,” said Shishir Baijal, President and Managing Director of Knight Frank India.
While more than 10 lakh apartments have been introduced in the housing market over the past decade, there is still a lack of affordable housing due to unavailability of urban land, poor transport and social infrastructure , poor financing prospects for owners and problems for new projects.
Of those looking to buy a house, only 36% of respondents had a house budget of more than Rs 25 lakh; 38% of respondents would prefer a house under Rs 15 lakh, while 26% would like a house in the price range of Rs 16-25 lakh.
Due to the lack of affordable housing, 36% of respondents live in rental accommodation and almost everyone who has lived in the city for less than 10 years lives in rental accommodation. Home ownership has only improved to 75% among people who have lived in the city for more than 15 years.