Indian Real Estate Sees Boom in Luxury Home Sales, Dip in Affordable Housing: Report

Luxury and premium home sales surged in India in the last five years -- from 7 per cent sales in Q1 2019 to 21 per cent in Q1 2024 -- while affordable housing saw a 20 per cent dip in the same period, a report showed on Friday. From 1.30 lakh homes sold in the January-March quarter (Q1) this year across the top seven cities, the share of luxury homes stood at 21 per cent with nearly 27,070 units sold.

Five years ago, in Q1 2019, the share was just 7 per cent, recording 3 times jump, according to the latest Anarock data. On the other hand, nearly 26,545 units were sold in the affordable segment in Q1 2024 -- a 20 per cent overall sales share from 37 per cent in the same period five years ago.

“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," said Anuj Puri, Chairman, Anarock Group. “Affordable housing, on the other hand, is driven primarily by lower ticket sizes,” he added.

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Of nearly 15,645 units sold in Delhi-NCR in Q1, the highest sales (6,060 units or 39 per cent) were of luxury homes priced more than Rs 1.5 crore. Five years ago, luxury sales share in the region was a mere 4 per cent of total homes sold (about 13,740 units).

In Q1 2024, Bengaluru, Mumbai Metropolitan Region (MMR), Chennai, Pune and Hyderabad saw maximum sales in the mid-range and premium segments (units priced Rs 40 lakh to Rs 1.5 crore). When it comes to affordable housing, data indicates that its supply share has dropped to 18 per cent of the total new launches in Q1 this year. In 2019, the new supply share of affordable homes stood at 40 per cent out of the overall new supply additions, according to the report.