According to consultants and developers, the share of affordable houses in new residential project launches has decreased by half from pre-pandemic levels.  

A sharp increase in raw material costs compelled developers to reduce the supply of affordable houses in the top 7 cities in 2022, according to the real estate consulting firm Anarock.  

In 2018, 39% of property seekers in the top 7 Indian cities – Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune were interested in affordable homes priced under Rs 40 lakhs.  

But in 2022, only 26% bought homes in this particular budget range, leaving much unsold affordable housing.  

Nayan Raheja, executive director of a realty firm, said that affordable homes are unsustainable for them.  

Experts suggest that the affordable housing price of Rs. 45 lakhs in Mumbai is inadequate and should be raised to Rs. 85 lakhs or more, and for other major cities, the price band should be raised to Rs. 60–65 lakhs.