Surge in Luxury Housing, Decline in Affordable Housing
The real estate market in India has witnessed a notable shift in recent years, with luxury housing sales experiencing a surge and affordable housing sales declining. This trend is highlighted in data shared by Anarock, which shows that the share of luxury housing sales has jumped to 21% from a mere 7% five years ago. Conversely, affordable housing has seen a sharp decline, dropping from 37% to 20% during the same period.
This shift is reflected in both the number of housing units sold and launched across major cities in the country. In Q1 2024, approximately 27,070 luxury homes priced over ₹ 1.5 crore were sold, accounting for 21% of the total 1.30 lakh housing units sold in the top seven cities. This contrasts significantly with the trend in Q1 2019, when affordable housing held a 37% share of the market.
The same trend is evident in housing launches. In Q1 2024, around 28,020 luxury homes were launched, constituting 25% of the approximately 1.10 lakh units launched across the top seven cities. Affordable housing, on the other hand, comprised just 18% of the launches.
This shift towards luxury housing is primarily driven by a growing demand for larger homes from branded developers in premium locations. The affordable housing segment, on the other hand, has been impacted by the downward spiral of ticket sizes and the impact of the pandemic. However, affordable housing remains a critical need, and its revival will hinge on further government support and incentives for buyers and developers.
