Huge number of vacant flats despite housing shortage, says top property body head
According to the National President of the National Real Estate Development Council of India (NAREDCO), G Hari Babu, there are currently over 1 crore or 10 million vacant flats across the country even as demand for housing remains high. Speaking in an interview, Babu highlighted the growing trend of wealthy individuals and investors purchasing properties only as investments and leaving them unused.
While luxury housing launches have skyrocketed in recent years, the supply of affordable homes priced below Rs. 75 lakh has seen little growth. Babu said this is because only the top 10% of the population, earning over Rs. 70,000 per month, are able to afford properties in major cities due to rising construction costs.
The huge number of vacant units is cause for concern given the ongoing shortage. Babu believes it should be made compulsory for investors to either rent out vacant units or sell them to avoid keeping assets idle. Failure to do so could result in higher property taxes.
According to the property expert, incentives like tax breaks and lower stamp duties are needed to boost the affordable housing sector for lower-income groups. The current price limits and regulations have not benefited developers as construction costs have increased. Interest rates also need to come down further to improve affordability for home buyers.
With suitable policy changes, Babu estimates affordable housing supply could rise by 25-30%. This would be crucial for India's goal of becoming a developed nation with adequate housing for most citizens. The large number of residents still living in slums highlights more work is required on this front.
