Covid crimps budget housing market as consumers cut down on expenses

Data shows the share of affordable homes in the overall new launches in the top seven metros fell sharply since the Covid-19 pandemic upended lives in India

Amid widespread economic distress and sinking income levels, the country’s real estate sector is undergoing a massive overhaul. This comes at a time when a broad swathe of consumers is cutting down on expenses, further crimping the affordable housing market.

The data from market analyst firm Anarock Property Research shows the share of affordable homes (priced below Rs 40 lakh) in the overall new launches in the top seven metros fell sharply since the Covid-19 pandemic upended lives in India. From 40 per cent in early 2020, its share is now down to 20 per cent (April-June 2021).

Meanwhile, the