Affordable Housing, Not so Affordable Now - 12% hike in Allotment Rates

In today’s real estate market, buying a home is becoming more difficult as property rates rise. Amidst that, there are affordable housing societies that provide you with the solution to your requirements. But now even affordable housing projects are not so affordable as there is a 12% hike in allotment rates, making the affordable housing slightly more expensive than it was. To put this in simple words, affordable housing rates are going to rise from 5,000 per sqft to 5575 per sqft in Gurgaon.

Why Did This Happen?

We believe that this could have happened for 2 reasons:

• The land rates and construction costs are rising as the market is getting expensive, making it difficult to keep costs low.

• To prevent the builders from not bailing out and completing the contract, as they also need to make some money out of it.

What Will Happen Now

The new rates will be applied to all the projects where allotment has not taken place yet. For Allotments that have already started their proceeding will go as planned, but the successful applicants will have to pay the price difference. The Applicants who are selected will be required to pay according to the revised price; however, if they don’t want to proceed, they can exit, and a full refund will be made.

What Should You Do?

We find this as a signal to invest in affordable housing projects, as the rates have been revised quite a few times in the previous 6 years, and it has always gone up. In July 2023, the affordable housing rates were 4200, and now it has jumped by 1375 rupees in 3 years. So if you are thinking that you will wait for the rates to get revised again, and it might go lower, think again. The property rates are rising, the labor cost is going high, the materials are getting expensive, and development is becoming costlier.