Affordable Housing Sales Dip 4% in Top Indian Cities
Sales of affordable homes in top Indian cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad declined 4% due to lower supply and higher demand for luxury apartments.
Affordable HousingIndian Real EstatePropequityLuxury ApartmentsMumbaiDelhi NcrBengaluruHyderabadReal Estate PuneJun 16, 2024
The lower supply of affordable homes is one of the key factors contributing to this marginal fall in sales. As per PropEquity data, the fresh supply of homes up to Rs 60 lakh each declined to 33,420 units during January-March 2024, from 53,818 units in the year-ago period.
Builders are focusing more on launching luxury apartments to capitalize on the surge in demand for premium residential properties, which offer higher profit margins. As a result, housing sales in the affordable segment declined to 2,35,340 units in the 2023 calendar year, from 2,51,198 units in the preceding year.
In 2019, sales of homes up to Rs 60 lakh stood at 2,26,414 units. During the 2020 calendar year, which saw an outbreak of the COVID pandemic, sales in this price category fell to 1,88,233 units. However, sales bounced back in 2021 and 2022 to 2,17,274 units and 2,51,198 units, respectively.
Region-wise, sales of homes up to Rs 60 lakh rose in MMR to 28,826 units during January-March 2024, from 23,401 units in the year-ago period. In Pune, sales fell to 12,299 units from 14,532 units, while in Ahmedabad, sales slipped to 6,892 units from 8,087 units. Hyderabad saw a decline in sales to 3,360 units from 3,674 units, while Chennai witnessed a fall in sales to 2,003 units from 3,295 units. Sales in Bengaluru decreased to 2,801 units from 5,193 units. In Kolkata, sales rose to 3,741 units from 2,831 units. Delhi-NCR saw a decline in sales to 1,199 units from 2,774 units.
PropEquity, an online provider of analytics, data, and deal flows covering the Indian real estate industry, reported a 37% growth in total income to Rs 44.17 crore last fiscal from Rs 32.3 crore in 2022-23. The company tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
Frequently Asked Questions
Which cities have seen a decline in affordable housing sales?
Cities like Delhi-NCR, Bengaluru, Hyderabad, Chennai, and Pune have seen a decline in affordable housing sales.
What is the main reason for the decline in affordable housing sales?
The lower supply of affordable homes is one of the key factors contributing to this marginal fall in sales.
What is the current trend in the Indian real estate market?
Builders are focusing more on launching luxury apartments to capitalize on the surge in demand for premium residential properties, which offer higher profit margins.
How many units of affordable homes were sold in 2023?
Housing sales in the affordable segment declined to 2,35,340 units in the 2023 calendar year.
What is PropEquity, and what does it do?
PropEquity is an online provider of analytics, data, and deal flows covering the Indian real estate industry, tracking over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
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