Affordable home sales are likely to be hit by the proposed US tariffs on Indian exports, which will hurt small businesses and income of their staff who are major buyers of housing properties costing up to Rs 45 lakh, according to realty consultant Anarock.
Micro, Small and Medium Enterprises (MSMEs) account for a significant chunk of goods exports to the US, and a higher tariff will mean their products becoming less competitive. Such a scenario will result in reduced business orders and, in turn, adversely impact the staff employed by these enterprises.
In a statement on Monday, Anarock pointed out that sales and launches of affordable homes have already gone down post-COVID-19 pandemic.
Out of 1.9 lakh housing units sold in the first half of 2025 across seven major cities, only 34,565 units were in the affordable category, as per the Anarock data.
"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," said Prashant Thakur, Executive Director- Research & Advisory at Anarock.
According to government estimates, Anarock said that MSMEs currently contribute nearly 30 per cent to India's GDP, and over 45 per cent to its exports. The imposition of a 50 per cent tariff by the US on Indian goods is likely to have an adverse impact on MSMEs and their workforce.
The consultant noted that workforces employed in India's MSMEs and SMEs are the primary clientele for affordable housing.
"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.
Further, he added that this would curtail launches of affordable homes by developers.
Micro, Small and Medium Enterprises (MSMEs) account for a significant chunk of goods exports to the US, and a higher tariff will mean their products becoming less competitive. Such a scenario will result in reduced business orders and, in turn, adversely impact the staff employed by these enterprises.
In a statement on Monday, Anarock pointed out that sales and launches of affordable homes have already gone down post-COVID-19 pandemic.
Out of 1.9 lakh housing units sold in the first half of 2025 across seven major cities, only 34,565 units were in the affordable category, as per the Anarock data.
"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," said Prashant Thakur, Executive Director- Research & Advisory at Anarock.
According to government estimates, Anarock said that MSMEs currently contribute nearly 30 per cent to India's GDP, and over 45 per cent to its exports. The imposition of a 50 per cent tariff by the US on Indian goods is likely to have an adverse impact on MSMEs and their workforce.
The consultant noted that workforces employed in India's MSMEs and SMEs are the primary clientele for affordable housing.
"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.
Further, he added that this would curtail launches of affordable homes by developers.
