More affordable houses, but not enough buyers

Developers who had rushed to launch affordable housing projects are sitting with over 40 % unsold stock. While demand for sub-Rs 30 lakh apartments went up in Mumbai, Gurgaon, Noida, Thane, Bengaluru, Kolkata, Hyderabad and Pune, supply grew at a faster pace as realtors rushed into the market to improve their cash flows at a time when there were few takers for upper-end dwelling units.

Developers now have to deal with a situation where they have to carry forward the stock as supply has far outstripped demand. As a result, almost two in every three sub-Rs 30 lakh apartments that came into the market in the 12 months ended October 2009 remained unsold.





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