Even though the number of affordavle housing projects are joing up in the recent times, the demand for residential units is unlikely to increase over the next 12-18 months. This is due to the reason that the number of end users are lacking. CRISI's analysis shows that the home sales in the top 10 cities such as chennai. mumbai, delhi, Bengaluru, Hyderabad, Kochi, Kolkota, Ahmedabad, Chandigarh, etc. has reduced by a compounded factor of 8% since 2011.
The trend is expected to continue well into 2019 and beyond. High property prices have made users wary of purchasing a property at current prices. Currently, rentals in suburbs have gained more popularity than purchasing a house in peripheral micro markets.
The risks associated with under construction projects is preventing buyers from investing in them.
CRISIL says that the new few quarters will see more launches occuring in the affordable housing category, leading to a reduction in the overall ticket size.