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India Today
3 days ago
- Business
- India Today
Trump tariffs could worsen India's affordable housing crisis. Here's how
Mounting trade tensions between India and the United States, marked by tariffs as high as 50% on Indian exports, threaten to further weaken India's affordable housing market, already under strain from pandemic aftershocks and rising input housing, defined as homes priced up to Rs 45 lakh, accounted for just 18% of sales in India's top seven cities in the first half of 2025, down sharply from 38% in 2019, according to ANAROCK absolute terms, 34,565 affordable homes were sold out of a total 1.90 lakh units during this period. Project launches have dropped even more steeply, from 40% of total launches in 2019 to just 12% this year. The sector's troubles are closely tied to India's micro, small, and medium enterprises (MSMEs) and small and medium enterprises (SMEs)—the backbone of the country's export they contribute nearly 30% of GDP and over 45% of exports, employing more than 260 million people in labour-intensive industries such as textiles, engineering goods, auto components, gems and jewellery, and food processing. Workers in these industries form the primary demand base for affordable exporters have surged 228% in the last four years, from 52,849 in FY 2020-21 to 173,350 in FY 2024-25. But tariffs risk cutting into export revenues, threatening job security and income levels across this workforce, and in turn, eroding affordable housing Prashant Thakur, Executive Director – Research & Advisory at ANAROCK Group, says, 'This category of homes priced Rs 45 lakh or less was already gravely hit by the Covid-19 pandemic and is still struggling to find any semblance of firm ground. Trump's mercenary tariffs will snuff out even the dimmest ray of hope for this segment.'(Source: ANAROCK Research & Advisory)The new tariffs, if implemented, will throw up a roadblock on what should be an open-speed highway, and cause a 'chakka jam' for the affordable housing vehicle carrying the homeownership dreams of India's largest lower-income population segment, adds ANAROCK.'Because of the disruption in this large workforce's future income thanks to the tariffs, affordable housing demand may very possibly derail and further impact sales in this highly income-sensitive segment,' Thakur said. 'Concurrently, such a drop in demand will curtail launches by developers, who will have to contend with tighter working capital due to lower sales. As it is, they have been grappling with serious input cost inflation since the pandemic.'Housing finance companies catering to this segment may also face rising default risks and lower loan disbursements as demand weakens. For developers already navigating cost inflation and constrained capital, fewer buyers will mean fewer experts and policymakers warn that without urgent interventions—from export diversification and fiscal relief for MSMEs to easier homebuyer credit and developer support—India risks deepening the affordable housing crisis.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
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Business Standard
09-07-2025
- Business
- Business Standard
Godrej Properties to Adani Realty: Biggest land deals of 2025 decoded
India's real estate sector witnessed a series of high-value and high-impact land transactions in the first half of 2025, as developers and corporates sharpen their focus on manufacturing, logistics, residential, and data-driven infrastructure. According to ANAROCK Research & Advisory, the biggest deals range from plotted developments to semiconductor plants. Largest Deals by Value and Purpose Lam Research made the biggest land buy of H1 2025, acquiring 25 acres in Bengaluru for ₹1,125 crore to set up a semiconductor equipment manufacturing plant—a major boost for India's electronics manufacturing ecosystem. A consortium comprising Schloss Bangalore Ltd, Arliga Ecospace Business Parks, and Schloss Chankya Pvt Ltd sealed a ₹1,302 crore commercial land deal in Mumbai, spanning 8.31 acres, one of the highest-value urban commercial transactions this year. In the data centre space, NTT Global Data Centers acquired 2.39 acres in Mumbai for ₹855 crore, reflecting continued investment in digital infrastructure. Omaxe Ltd purchased 260 acres in Amritsar for ₹1,000 crore, marking one of the largest township land buys of the year. Mixed Use and Plotted Projects Continue to Attract Big Names Max Estate bought 10.33 acres in Noida for ₹711 crore for a mixed-use development, while Godrej Properties entered Indore's plotted development market with a ₹120 crore acquisition. Brigade Group picked up 4.4 acres in Bengaluru for ₹220 crore, aiming for premium residential development, while Prestige Group & Arihant Group teamed up for a ₹361 crore residential project in Chennai. Arvind Smartspace emerged as a major player, securing two separate deals in Ahmedabad—a 440-acre JDA for an industrial & logistics park, and 150 acres for plotted residential development. EcoBox Industrial Parks invested ₹400 crore in 50 acres in Chennai to expand industrial and logistics capacity, highlighting the region's strategic location advantage. JDAs Rise Sharply, Marking Shift in Strategy One of the standout trends from the report is the 150% year-on-year growth in Joint Development Agreements (JDAs), a sign of increasing collaboration between landowners and developers. This model offers risk sharing, capital efficiency, and aligns with long-term infrastructure growth, particularly along economic corridors. Regional Snapshot: Between 2021 and 2024, the National Capital Region (NCR) recorded the highest number of land deals (92) and the largest value of land transactions, totaling around ₹26,100 crore. Meanwhile, Mumbai Metropolitan Region (MMR) stood out for the highest-value single land deal of ₹5,200 crore in 2023, and largest total land area transacted at 1,745 acres. Notably, Hyderabad saw one of the biggest single land deals with a 600-acre acquisition during the same period. What it means The land acquisition trends from H1 2025 reflect a shifting real estate narrative in India. While residential demand remains strong, there is accelerated interest in industrial, logistics, digital infrastructure, and manufacturing parks, in sync with national priorities like 'Make in India', data localization, and supply chain optimization.
