Decline in Affordable Housing Sales: A Shift Towards Luxury Apartments
The decline in affordable housing sales in top 8 cities in India has been attributed to a lower supply of affordable homes and a surge in demand for luxury apartments.
Affordable HousingLuxury ApartmentsPropequityIndian Real Estate MarketProperty SalesReal EstateJun 16, 2024
The decline in sales has been attributed to a lower supply of affordable homes, which has been a major concern for the industry. The fresh supply of homes, up to ₹60 lakh each, declined to 33,420 units during January-March 2024, a significant drop from 53,818 units in the year-ago period.
Builders have shifted their focus towards launching luxury apartments, driven by a surge in demand for premium residential properties. The profit margins for luxury projects are also higher, making them a more attractive option for developers.
Historically, the sales of affordable homes have been steady, with a few fluctuations. In 2019, sales stood at 2,26,414 units, which fell to 1,88,233 units in 2020 due to the COVID-19 pandemic. However, sales bounced back in 2021 and 2022, only to decline again in 2023.
Region-wise, sales of affordable homes rose in MMR, but fell in Pune, Ahmedabad, Hyderabad, Chennai, and Bengaluru. Kolkata was the only city to witness an increase in sales.
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 shift towards luxury apartments has been driven by a change in consumer behavior, with many homebuyers opting for premium properties. While the decline in affordable housing sales is a concern, it also presents an opportunity for developers to focus on creating more luxury projects.
Frequently Asked Questions
What is the reason for the decline in affordable housing sales?
The decline in affordable housing sales has been attributed to a lower supply of affordable homes and a surge in demand for luxury apartments.
Which cities have witnessed a decline in affordable housing sales?
Pune, Ahmedabad, Hyderabad, Chennai, and Bengaluru have witnessed a decline in affordable housing sales.
What is driving the demand for luxury apartments?
A change in consumer behavior, with many homebuyers opting for premium properties, is driving the demand for luxury apartments.
How many projects does PropEquity track across India?
PropEquity tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
What is the total income growth reported by PE Analytics, the parent company of PropEquity?
PE Analytics reported a 37% growth in total income to ₹44.17 crore last fiscal from ₹32.3 crore in 2022-23.
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