Real Estate : Supply of Flats under Rs 50 Lacs hits rock-bottom amid soaring rates in Mumbai

Real Estate : Supply of Flats under Rs 50 Lacs hits rock-bottom

The escalating costs of land, premiums, and construction have led to entry-level rates of Rs 9,500 per sq ft in peripheral areas. This surge in pricing has resulted in cramped living spaces and rendered low-margin projects unfeasible for builders, leaving the public grappling with the consequences.

While the city witnesses extravagant luxury apartment deals ranging from Rs 100 crore to Rs 300 crore, the average Mumbaikar struggles to find affordable housing, especially in distant suburbs. Premium homes in affluent areas command rates between Rs 50,000 and over Rs 1 lakh per sq ft, while the lowest rate in the city is around Rs 9,500 per sq ft for small flats in locations like Dahisar, Bhandup (West), Malad (West), Kandivli (East), and Vikhroli (East).

Factors such as high land costs, premiums, and construction expenses have pushed affordable housing to extended and peripheral regions of the Mumbai Metropolitan Region (MMR). The supply of houses below Rs 50 lakh in Greater Mumbai is almost negligible, making it challenging for the average citizen to find suitable accommodation.

Affordable housing projects have become economically unviable for developers due to soaring land deals across the country and rising input costs. The shrinking demand for low-budget homes further reduces the appeal of launching such projects.

Recent reports indicate a 5% decrease in average flat sizes in MMR, reflecting the challenges faced by both developers and potential homeowners. In areas like Mira-Bhayander and Vasai-Virar, affordable flats cost between Rs 7 lakh and Rs 30 lakh but offer limited carpet area.

The issue extends to the city’s suburbs, with builders offering studio apartments of 175 sq ft to 263 sq ft in Bhandup (West) and 193 sq ft to 580 sq ft 1-BHK flats in Wadala (East). Despite the demand for affordable housing, the limited supply and rising costs pose a significant hurdle for the majority of Mumbaikars.

Housing activist Chandrashekhar Prabhu highlights the growing unaffordability of Mumbai, expressing concern over the challenges faced by the urban middle class. The property market’s transformation from the 1970s to the present has seen prices escalate, making it increasingly difficult for families to own homes in the city.

In conclusion, the dream of affordable housing in Mumbai remains elusive for many, as the real estate landscape continues to be shaped by soaring prices and limited options for the average citizen.