Share of luxury homes’ sales now almost at par with affordable housing units

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The share of luxury housing sales has jumped to 21% from a mere 7% five years ago but affordable housing has seen a sharp decline, dropping to 20% from 37% in the same period, data shared by Anarock has shown.

The share of luxury housing sales has jumped to 21% from a mere 7% five years ago but affordable housing has seen a sharp decline(Unsplash)
The share of luxury housing sales has jumped to 21% from a mere 7% five years ago but affordable housing has seen a sharp decline(Unsplash)

Of the approximately 1.30 lakh housing units sold across the top seven cities in Q1 2024, the share of luxury homes priced more than 1.5 crore was 21%, or approximately 27,070 units. This contrasts sharply with the trend of five years ago. In Q1 2019, affordable housing was at its peak, holding a share of 37% out of approximately 78,525 units sold across the top seven cities. Luxury housing had a mere 4% share, the data showed.

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As for housing launches, of the approximately 1.10 lakh units launched in Q1 2024 across the top 7 cities, approximately 28,020 units (or 25%) were luxury homes and just 19,980 units (18%) were in the affordable segment. Five years ago, in Q1 2019, out of approximately 70,480 units launched across the top 7 cities, affordable housing comprised a whopping 44% share while luxury had mere 9% share, the data showed. 

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The seven cities included NCR, Bengaluru, Hyderabad, MMR, Kolkata, Chennai and Pune.

The data also showed that of approximately 15,645 units sold in NCR in Q1 2024, the highest sales (approximately 6,060 units or 39%) was of luxury homes priced more than 1.5 crore; five years ago, luxury sales share in the region was mere 4% of total homes sold (approximately 13,740 units).

Also Read: Delhi-NCR’s real estate market: Here’s why rich Indians are lapping up luxury properties

In Q1 2024, Bengaluru, MMR, Chennai, Pune and Hyderabad saw maximum sales in the mid-range and premium segments (units priced 40 lakh to 1.5 crore), the data showed.

Of approximately 5,650 units sold in Kolkata in Q1 2024, affordable housing saw the highest sales with approximately 2,765 units – a 49% share, the data showed.

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“Around 26,545 affordable housing units were sold in Q1 2024, accounting for an overall sales share of 20% in the top 7 cities,” said Anuj Puri, Chairman – ANAROCK Group. “The mid-range and premium housing segment continued to rule the roost with approximately 76,555 units sold in the period – a near-59% overall sales share. Affordable housing is nowhere near to recouping its stellar sales share in 2019.”

“As luxury homes gain more traction in both new supply and sales, affordable housing continues its retreat to the sidelines. The luxury segment is driven by a mounting appetite for bigger homes by branded developers in superior locations,” says Puri. 

“Affordable housing, on the other hand, is driven primarily by lower ticket sizes. The downward spiral of this erstwhile poster child of the Indian housing industry began during the pandemic, and then morphed into a broader malaise. Even as the nation awaits the results of the ongoing general elections, any affordable housing revival will hinge on further government sops and incentives for buyers and developers,” he added.

 

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