PUBLISHER: Allied Market Research | PRODUCT CODE: 1193401
PUBLISHER: Allied Market Research | PRODUCT CODE: 1193401
The global affordable housing market was valued at $52,160.2 million in 2021, and is projected to reach $84,700.0 million by 2031, registering a CAGR of 4.9% from 2022 to 2031.Depending on the nation and the location, affordable housing may change. The term "affordable housing" refers to housing that is accessible to those in society who earn less than the median household income. Affordable housing is described as being "generally acceptable in standard and location for lower or middle income households and does not cost so much that a household is unlikely to be able to meet other basic necessities on a sustainable basis." During the projected period, the market for affordable housing is projected to grow remarkably quickly. The market for affordable homes is being driven by the rise in middle class and increase in working population.
Due to this, there has been a substantial migration of migrants, especially in Tier 1 cities. These migrants are relocating for employment and educational opportunities. This is anticipated to enhance market expansion over the anticipated time frame. During the projection period, the simplicity of obtaining mortgage financing is projected to drive market expansion. In addition, it is projected that the Indian government's initiative to provide housing for everyone by FY2023 will create lucrative opportunities for market growth. This gained traction when the union government declared in the FY2022 Budget that the option to deduct additional interest expenditures up to Rs. 1.50 lakh paid on loans for affordable housing would be extended by one year until March 31, FY2023. These governmental initiatives are what are fueling the market for affordable homes.
The demand for affordable housing is being driven by the rapid urbanization of emerging economies, where the bulk of the population is concentrated in countries like Brazil, China, India, and Eastern European countries. Developing countries create the demand for affordable housing driving the growth of the market. Moreover, all large cities in developed countries have reached a point of saturation where the growth of the urban area and the economy has either stopped or is growing at a very slow rate. For instance, the residential real estate market in the U.S. has seen a decline in the sale of affordable housing and residential properties in significant cities like Washington, D.C., as a result of an increase in property values and a decrease in investments by foreign investors. Such instances restrain the market growth during the forecast period.
The expansion of government programs for affordable housing and cooperation among major market participants is projected to offer attractive opportunities. Surge in collaborations across Europe also suggest that the region's market for affordable housing has a promising future. For instance, the European Affordable Housing Consortium for Sustainable Housing and Social Impact launched the SHAPE-EU initiative in March 2022.The global affordable housing market is segmented on the basis of providers, size of unit and location, and region. Based on providers, the market is divided into government, and public-private partnership. Based on size of unit, the market is divided into up to 400 square feet, 400-800 square feet, and above 800 square feet. Based on location, the market is divided into urban and rural.The major players profiled in the affordable housing market include Dominium, Jonathan rose cos, Larsen & Toubro Ltd., LDG Development, TATA Projects, The NRP Group, Pennrose, Prestige Group, Related Group, and Skanska. Major companies in the market have adopted acquisition, partnership and business expansion as their key developmental strategies to offer better products and services to customers in the affordable housing market.
Key Benefits For Stakeholders
By Providers
By Size of Unit
By Location
By Region