Top nine cities in India, where majority of Indians migrate for jobs, is staring at a housing crisis as the supply of homes in the affordable and mid-income category has dipped by 36% in the last two years, data from the real estate data analytics firm PropEquity said on Tuesday.

These top nine cities are Bengaluru, Chennai, Hyderabad, Mumbai, Pune, Thane, Navi Mumbai, Kolkata and NCR.

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Affordable and mid-income category houses are classified as those priced Rs 1 crore and below. These houses have dipped from 3,10,216 units in 2022 to 1,98,926 units in 2024 with NCR, Mumbai and Hyderabad as worst performers.

In 2023, the housing supply in the affordable and mid-income category stood at 2,83,323 units, a drop of 30% in one year.

According to the report, in the last two years, the supply of homes priced Rs 1 crore and below have fallen by 69% to 13238 units in Hyderabad. During the same period, the supply of homes priced Rs 1 crore and below has dipped by 60% to 6062 units in Mumbai and by 45% to 2672 units in NCR.

NCR followed by Mumbai supplied the least number of homes in this category. The total supply in NCR stood at 45503 units with only 2672 units supplied in Rs 1 crore and below category while total supply in Mumbai stood at 40,963 units with only 6062 units supplied in this category.

Samir Jasuja, Founder and CEO, PropEquity said, “Today, 8% of India’s population live in tier 1 cities and this number is expected to grow exponentially in the next five years as more people move to these cities for employment opportunities. The lack of supply in this category, if not attended to in time by the Government, will lead to a housing crisis akin to Australia and Canada.”

“In view of rising migration and growing number of nuclear families, it is estimated that 1.5 cr homes would be required in these cities in the next five years,” he said.

“To address this problem, the Government must not just incentivise developers through tax cuts and subsidies in order to make affordable and mid-income housing a viable option but also provide benefits to homebuyers in the form of home loan rebates, stamp duty cuts etc.”

Delhi-NCR at 2672 units in 2024, witnessed the least number of units supplied amongst the top nine cities; registering a decline of 45% in two years and 43% in one year.

Mumbai saw the second least number of units supplied, at 6062 units in 2024, registering a decline of 60% in two years and 31% in one year.

Housing supply in Bengaluru stood at 25012 units in 2024, a decline of 33% in two years and 11% in one year.

Chennai stood at 12,743 units, a decline of 13% in two years and 8% in one year while Hyderabad stood at 13,238 units, a decline of 69% in two years and 58% in one year.

Housing supply in Kolkata stood at 10,785 units, a rise of 7% in two years and decline of 41% in one year.