Local developers in real estate like Bengaluru, Delhi, and Mumbai continue to gain from the demand, triggered by the middle-class aspiration of owning a house.
Developers are shifting away from affordable housing, amidst a lack of government incentives and financial challenges.
Developers are moving away from affordable housing projects due to a number of reasons, including:
1.Rising costs
Land prices and raw material costs have increased, making it difficult for developers to offer affordable housing.
2.Limited land
3.Changing consumer preferences
Customers are now looking for larger units, which are more expensive to build.
4.Expired incentives
Interest subvention schemes for affordable housing have expired, and developers are demanding tax breaks and other incentives.
5.Better return
Developers are turning to premium and luxury housing, which offer better returns.
