Luxury home sales nearly equal affordable homes for first time

14 May 2024 CW Team

Anarock, a prominent real estate consultancy, revealed that the share of luxury homes has surged from a mere 7% in the same quarter of 2019. Conversely, the proportion of affordable homes, priced below Rs 40 lakh, has witnessed a decline from 37% to 20% during the same period.

The January-March quarter witnessed the sale of 1,30,170 homes across the top seven cities, comprising 27,070 luxury homes and 26,545 affordable homes. Moreover, the mid-range and premium housing segment, priced between Rs 40 lakh and Rs 1.5 crore, accounted for 76,555 units, representing 59% of total sales.

The dwindling popularity of affordable housing can be attributed to a growing preference among buyers for larger homes, a trend exacerbated by the pandemic. This shift was initially observed in the July-September quarter of last year when sales of luxury homes surpassed those of affordable ones for the first time in India.

Anuj Puri, Chairman of the Anarock Group, remarked on the transformational trajectory of the housing industry, emphasizing the need for government interventions to revive affordable housing. He underscored the necessity for further incentives and support from policymakers to stimulate demand among both buyers and developers.

The evolving market dynamics are also reflected in the supply side, with luxury housing constituting 25% of the 1,10,860 units launched in the top seven cities during the January-March quarter. In contrast, affordable housing projects comprised 18% of the total launches, marking a departure from the trends observed in 2019.

Among the top cities, the Mumbai Metropolitan Region (MMR) emerged as the frontrunner in luxury home sales, with 9,360 units sold. This was followed by the National Capital Region (NCR) with 6,060 units and Hyderabad with 5,755 units. In terms of affordable housing, MMR also led the pack with 12,650 units sold, followed by Pune and NCR.

In a noteworthy shift, luxury homes, priced above Rs 1.5 crore, constituted 21% of total sales in the January-March quarter of this year, nearly matching the share of affordable homes, which stood at 20%, according to a report released. This marks the first time such parity has been observed, signaling evolving trends in the real estate market. Anarock, a prominent real estate consultancy, revealed that the share of luxury homes has surged from a mere 7% in the same quarter of 2019. Conversely, the proportion of affordable homes, priced below Rs 40 lakh, has witnessed a decline from 37% to 20% during the same period. The January-March quarter witnessed the sale of 1,30,170 homes across the top seven cities, comprising 27,070 luxury homes and 26,545 affordable homes. Moreover, the mid-range and premium housing segment, priced between Rs 40 lakh and Rs 1.5 crore, accounted for 76,555 units, representing 59% of total sales. The dwindling popularity of affordable housing can be attributed to a growing preference among buyers for larger homes, a trend exacerbated by the pandemic. This shift was initially observed in the July-September quarter of last year when sales of luxury homes surpassed those of affordable ones for the first time in India. Anuj Puri, Chairman of the Anarock Group, remarked on the transformational trajectory of the housing industry, emphasizing the need for government interventions to revive affordable housing. He underscored the necessity for further incentives and support from policymakers to stimulate demand among both buyers and developers. The evolving market dynamics are also reflected in the supply side, with luxury housing constituting 25% of the 1,10,860 units launched in the top seven cities during the January-March quarter. In contrast, affordable housing projects comprised 18% of the total launches, marking a departure from the trends observed in 2019. Among the top cities, the Mumbai Metropolitan Region (MMR) emerged as the frontrunner in luxury home sales, with 9,360 units sold. This was followed by the National Capital Region (NCR) with 6,060 units and Hyderabad with 5,755 units. In terms of affordable housing, MMR also led the pack with 12,650 units sold, followed by Pune and NCR.

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