Affordable Housing Sales Drop 4% in Top Indian Cities: A Shift to Luxury Apartments?
The latest data from PropEquity reveals a 4% decline in affordable housing sales in India's top eight cities, including Delhi-NCR, Mumbai, Bengaluru, and more. Find out what's driving this shift.
Affordable HousingLuxury ApartmentsReal EstatePropequityIndian Real Estate MarketReal Estate MumbaiJun 16, 2024
The data suggests that a lower supply of affordable homes is one of the primary factors contributing to this decline. In the same period, the fresh supply of homes in this price category dropped to 33,420 units from 53,818 units in the previous year. This is largely due to builders focusing on launching luxury apartments to capitalize on the growing demand for premium residential properties, which offer higher profit margins.
Historically, sales of homes priced up to Rs 60 lakh have been consistent. In 2019, sales stood at 2,26,414 units. While the COVID-19 pandemic led to a decline in sales to 1,88,233 units in 2020, the market bounced back in 2021 and 2022 with sales reaching 2,17,274 units and 2,51,198 units, respectively. However, sales declined again in 2023 to 2,35,340 units.
A city-wise analysis reveals that while sales of affordable homes increased in MMR to 28,826 units, they declined in Pune to 12,299 units, Ahmedabad to 6,892 units, Hyderabad to 3,360 units, and Chennai to 2,003 units. Bengaluru witnessed a significant decline in sales to 2,801 units from 5,193 units. However, sales rose in Kolkata 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, tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis. The company reported a 37% growth in total income to Rs 44.17 crore last fiscal from Rs 32.3 crore in 2022-23.
As the Indian real estate market continues to evolve, it will be interesting to see how the demand for affordable housing and luxury apartments shapes up in the coming months.
Frequently Asked Questions
What is the decline in affordable housing sales in India's top eight cities?
A 4% decline in affordable housing sales in India's top eight cities, including Delhi-NCR, Mumbai, Bengaluru, and more.
What is the primary reason for this decline?
A lower supply of affordable homes, as builders focus on launching luxury apartments to capitalize on the growing demand for premium residential properties.
Which cities have witnessed an increase in affordable housing sales?
Only MMR and Kolkata have witnessed an increase in affordable housing sales.
What is the total income growth of PropEquity in the last fiscal?
A 37% growth in total income to Rs 44.17 crore last fiscal from Rs 32.3 crore in 2022-23.
How many projects does PropEquity track across India?
Over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
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