Chennai: Only about 29 per cent of the 1.39 lakh units launched across top seven cities in India during the first six months of the year are affordable, said a report by a real estate consultancy firm.
Anarock said out of the total supply of 1,39,490 units across the top seven cities in the country, only 39,840 units fall in the affordable category.
High cost of land, the rising price of inputs and the lack of interest of buyers in peripheral areas are some of the possible reasons for the slower growth in the segment, the report said.
The news comes at a time when the Centre is pushing to promote affordable housing across the country, offering sops even.
To avail credit subsidy and tax deduction on interest payment of loans announced by the government in the interim budget in February this year, a house must be priced at less than Rs 45 lakh and not exceed 60 square metres or 850 square feet, including overall loading.
As per the report, the Mumbai Metropolitan Region (MMR) witnessed the maximum launches in the affordable category with 17,700 units, while Pune came second with 9,350 units.
The National Capital Region (NCR) saw the third highest number of launches of affordable units at 6,950 units between January and June this year.
Major cities, including Chennai, Bengaluru, Hyderabad and Kolkata, together accounted for a mere 15 per cent of the share and saw 5,820 new units in this category.
The report said if the price restriction is widened, more homes will come within the segment and thus help aspiring buyers to take benefits such as lower GST rates, government subsidies and tax deductions.
It also called for the government to release the land held by public sector units such as Railways, heavy industries, to increase the supply.