Nashik's Housing Puzzle: Surging Sales vs Supply Strain
Nashik presents an engaging paradox in Q1 2025 – apartment sales spiked by 22%, but new housing supply shrank by 30% according to Credai. This imbalance adds pressure to the affordable segment, where supply only dipped 2% compared to the national collapse of 54% in units under ₹50 lakh.
Key Market Metrics
| Indicator | Nashik Q1 2025 | National Trend |
|---|---|---|
| Supply Change | -2% (2,466 units) | -35% overall |
| Affordable Housing | 24% of supply | 24% (down from 33%) |
| Sales Growth | +22% | Varies by city |
| Price Trend | 8-12% increase | Steady upward |
Why Developers Steer Clear of Affordable Housing
Profit margins show the real issue. Builders in Nashik's Dasak and Rane Nagar areas focus on projects over ₹50 lakh where returns justify higher land prices. PropEquity's data highlights that financially sound developers purposely cut back on affordable housing due to market conditions.
Three primary reasons behind this strategic shift:
- Cost Increases: Building costs rose 18% while prices for affordable units are limited
- Government Schemes: PMAY projects add complex compliance hurdles compared to the premium segment freedom
- Buyer Preferences: 75% of premium buyers pay full price, whereas just 45% do in affordable housing
Changes in Buyer Behaviour
First-time buyers confront unique challenges. Many now:
- Choose locations further out, to areas like Pathardi Phata
- Pick smaller 1BHK flats even for family needs
- Postpone purchases, hoping for interest rate drops
- Seek direct seller contacts via websites like Propertywala to skip brokers
Data indicate serious effects. Knight Frank shows Nashik's affordable units supply-to-demand ratio has dropped to 0.36 from 1.05 in 2019, suggesting just 36 homes for every 100 buyers.
Future Trends for Nashik
Despite the issues, Nashik stays relatively resilient. Smart City projects and PMAY boost several areas. Focused developers balance portfolios with:
- Mixed-income developments including 20-30% affordable housing
- Compact premium properties, generally 600-800 sq ft
- Upcoming projects near new infrastructure
The city's unique role as a bright spot amid a national crisis makes it an interesting study. While Bhubaneswar saw a 72% supply drop, Nashik's 2% dip shows how government efforts and developer strategies can handle market jolts.
Final Reflections
Nashik's case demonstrates that tier-2 markets aren't one size fits all. The city's modest decline in affordable housing supply versus the national plunge highlights localised strategies. Anticipate greater price pressure in middle-segment properties (₹50L-₹1Cr) as buyers face vanishing affordable options and rising premium prices.