Decline in Affordable Home Sales: A Shift Towards Luxury Apartments?
Sales of affordable homes dip 4% in top 8 cities, luxury apartments in high demand, PropEquity reports.
Real EstateAffordable HousingLuxury ApartmentsPropequityIndian Real Estate MarketReal Estate MumbaiJun 16, 2024
The top 8 cities that saw a decline in affordable home sales are Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. PropEquity's data reveals that sales of homes in this price category stood at 61,121 units during the January-March quarter of 2024, down from 63,787 units in the same period last year.
One of the key factors contributing to this decline is the lower supply of affordable homes. According to PropEquity, the fresh supply of homes priced up to Rs 60 lakh each declined to 33,420 units during January-March 2024, down from 53,818 units in the same period last year. Builders are shifting their focus towards launching luxury apartments, which offer higher profit margins.
While sales of affordable homes have declined, the demand for luxury apartments has seen a significant surge. This trend is expected to continue in the coming years, with more and more builders focusing on launching luxury projects.
In terms of city-wise performance, MMR saw a rise in sales of affordable homes to 28,826 units during January-March 2024, up from 23,401 units in the same period last year. However, Pune saw a decline in sales to 12,299 units from 14,532 units. Ahmedabad, Hyderabad, Chennai, and Bengaluru also witnessed a decline in sales of affordable homes.
PropEquity is an online provider of analytics, data, and deal flows covering the Indian real estate industry. The company tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
Information
PropEquity is a leading real estate data analytics firm that provides insights and intelligence to stakeholders in the Indian real estate industry. The company was founded in 2013 and has since become a trusted source of real estate data and analytics in India.
PE Analytics Ltd, the parent company of PropEquity, is a listed company that reported a 37% growth in total income to Rs 44.17 crore last fiscal from Rs 32.3 crore in 2022-23.
Frequently Asked Questions
What is the decline in sales of affordable homes in top 8 cities of India?
The sales of affordable homes priced up to Rs 60 lakh each declined by 4% in the top 8 cities of India during the January-March quarter of 2024.
What is the reason behind the decline in sales of affordable homes?
The decline in sales of affordable homes can be attributed to a lower supply of affordable homes and a surge in demand for luxury apartments.
Which cities saw a decline in sales of affordable homes?
The cities that saw a decline in sales of affordable homes are Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad.
What is PropEquity?
PropEquity is a leading real estate data analytics firm that provides insights and intelligence to stakeholders in the Indian real estate industry.
What is the trend expected in the Indian real estate market?
The trend expected in the Indian real estate market is a shift towards luxury apartments, with more and more builders focusing on launching luxury projects.
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