India's Housing Market Sees Dramatic Shift: Premium Homes Take Center Stage
Homes priced above Rs 1 crore now dominate India's residential real estate market, accounting for 37% of the overall market share.
Indian Real Estate MarketPremium HomesResidential HousingProptigerHousing Market TrendsReal EstateJun 30, 2024
In contrast, homes priced between Rs 45-75 lakh form the second largest category with 26% of the market, but their share has remained stable over the past five years. The Rs 25-45 lakh price category, representing affordable homes, has lost momentum, with its share shrinking from 26% in Q1, 2019 to 17% in Q1, 2024. The fall in sales is the sharpest in the lowest price band, with homes priced up to Rs 25 lakh, which has plummeted from 25% of the overall market in Q1, 2019 to 5% in Q1, 2024.
Industry experts and realtors attribute this shift to the steep rises in the cost of materials, labour, and land prices, making low-income projects unviable. As a result, no realtors are launching homes priced under Rs 25 lakh, and sales are taking place from the existing inventory.
The rise of premium homes is driven by factors such as increased disposable income and changing lifestyle preferences. Analysts at PropTiger note that the data indicates a significant trend in buyer behaviour, with a shift towards high-value acquisitions.
Information PropTiger is a leading online real estate marketplace that provides a platform for buyers and sellers to connect.
PropTiger is a part of ELARA Technologies Pte Ltd., which also owns Housing.com and Makaan.com.
Frequently Asked Questions
What is the current largest segment in the Indian residential real estate market?
Homes priced above Rs 1 crore are now the largest segment in the local housing market, accounting for 37% of the overall market share.
What is the reason behind the shift towards premium homes?
The shift is driven by factors such as increased disposable income and changing lifestyle preferences.
What is the share of homes priced between Rs 45-75 lakh in the market?
Homes priced between Rs 45-75 lakh form the second largest category with 26% of the market.
Why are there no new launches of homes priced under Rs 25 lakh?
Steep rises in the cost of materials, labour, and land prices have made low-income projects unviable.
What is the share of homes priced up to Rs 25 lakh in the market?
The share of homes priced up to Rs 25 lakh has plummeted from 25% of the overall market in Q1, 2019 to 5% in Q1, 2024.
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