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.
Related News Articles
Property Registration Scandal: 796 Documents Under Scrutiny for Violating Real Estate Laws
The registration department is investigating 796 property registration documents for non-compliance with real estate regulations, sparking concerns among developers and buyers.
Maharashtra Weather Alert: Heavy Rainfall Expected in Mumbai, Pune, and Other Districts
IMD issues yellow alert for Mumbai, red alert for Palghar and Pune; heavy to very heavy rainfall expected in the next 24 hours
Nagpur Townships Inspected by State-Appointed Panel, Issues Persist
A state-appointed panel inspected several townships in Nagpur, Maharashtra, but issues related to water supply, irrigation clearance, and inspection delays remain unresolved.
Indore Sees 12.8% Rise in Property Revenue During Festive October
The city of Indore recorded a significant 12.8% increase in property revenue during the festive season in October. According to Balkrishna More, the Deputy Inspector General of Registration for the Indore region, the surge in real estate activity can be a
Arvind Gurumurthy: A Renowned Legal Expert in M&A, Private Equity, and Corporate Law
Arvind Gurumurthy, a distinguished legal professional, has made significant contributions in the fields of M&A, private equity, and corporate law. With a successful seven-year tenure as Partner at Kochhar & Company, Arvind has extensive experience in hand
Arthur Laffer Buys $87,156 in NexPoint Diversified Real Estate Trust Stock: A Bullish Signal?
Arthur Laffer, the director of NexPoint Diversified Real Estate Trust (NXDT), has made a significant purchase of $87,156 in company stock. This move could signal his confidence in the company's future performance. Investors should consider this as a potential indicator of a bullish market play.