Mumbai: Demand for budget housing remains strong in Panvel, with Lakhotia Realty reporting the sale of more than 100 homes priced at around Rs 25 lakh each within five weeks of launching its Greater Panvel Superzone (GPS) project at Kewale.
The sales performance comes against a broader slowdown in India’s affordable housing segment, where both sales and new supply of homes below Rs 50 lakh have declined in recent years.
At the Rs 25-lakh price point, a homebuyer taking a loan of about Rs 20 lakh could face an estimated monthly EMI of nearly Rs 17,000. This could make ownership potentially accessible to households earning around Rs 50,000–60,000 per month, depending on their financial profile and loan terms.
Data from Knight Frank, cited by the developer, showed that sales of homes priced below Rs 50 lakh across India’s eight major residential markets fell 17% in 2025 to 73,694 units. New launches in this segment also dropped 28%, indicating a continued contraction in affordable housing supply.
In comparison, demand has been stronger in the premium segment. Homes priced above Rs 1 crore recorded 175,091 sales in 2025, representing a 14% year-on-year increase and accounting for about half of residential sales across the eight markets.
Lakhotia Realty Founder and Director RM Lakhotia said the response to the Panvel project indicates that affordability remains a significant requirement among homebuyers.
“The demand exists, but viable supply does not,” he said, pointing to continued demand for homes priced below Rs 50 lakh.
According to the company, increasing land values, approval costs and construction expenses have made it more challenging for developers to deliver homes within the affordable segment.
The Kewale project also benefits from Panvel’s expanding infrastructure network. Its location provides access to Navi Mumbai International Airport, Atal Setu and JNPT. Proposed developments such as International EduCity and MediCity are expected to further support the Panvel-Ulwe growth corridor.
The Rs 31,793-crore Virar-Alibaug Multimodal Corridor and Rs 2,782-crore Panvel-Karjat suburban rail project could additionally strengthen regional connectivity.
The strong initial sales in Panvel underline a wider market trend: affordable housing demand has not disappeared, but suitable supply at accessible price points is becoming increasingly limited.
Source: The Free Press Journal
