Luxury Boom Drives Down Affordable Home Sales in Major Indian Cities
India's top cities witness a decline in affordable home sales amidst a surge in luxury property demand
Real EstateAffordable HomesLuxury ApartmentsIndian CitiesPropequityReal Estate MumbaiJun 16, 2024
The top eight cities included in this analysis are Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. During the same period last year, sales of homes in this price category stood at 63,787 units.
One key factor contributing to this decline is the reduced supply of affordable homes, with fresh supply falling to 33,420 units in January-March 2024, down from 53,818 units in the corresponding period the previous year. Developers are increasingly focusing on luxury apartments to capitalize on the surge in demand for premium properties, which offer higher profit margins.
Consequently, housing sales in the affordable category also declined annually to 235,340 units in 2023 from 251,198 units in 2022. In comparison, sales were 226,414 units in 2019 and dropped to 188,233 units in 2020 due to the COVID-19 pandemic, before rebounding to 217,274 units in 2021.
In the January-March period of this year, sales of homes priced up to Rs 60 lakh saw mixed trends across different cities. In MMR, sales rose to 28,826 units from 23,401 units in the previous year. However, Pune saw a decline to 12,299 units from 14,532 units. Ahmedabad's sales slipped to 6,892 units from 8,087 units, while Hyderabad's sales decreased to 3,360 units from 3,674 units. Chennai witnessed a significant fall to 2,003 units from 3,295 units, and Bengaluru saw a decline to 2,801 units from 5,193 units. In contrast, Kolkata experienced a rise in sales to 3,741 units from 2,831 units. Sales in Delhi-NCR dropped sharply to 1,199 units from 2,774 units in the year-ago period.
PropEquity, an online provider of real estate analytics, data, and deal flows, reported a 37% growth in total income to Rs 44.17 crore last fiscal year, up from Rs 32.3 crore in 2022-23. The company tracks over 173,000 projects from 57,500 developers across 44 Indian cities in real-time.
Frequently Asked Questions
What is the decline in affordable home sales in major Indian cities?
According to a report by PropEquity, sales of affordable homes priced up to Rs 60 lakh in India's eight major cities declined by 4% to 61,121 units in the January-March period this year.
What is the reason for the decline in affordable home sales?
One key factor contributing to this decline is the reduced supply of affordable homes, with fresh supply falling to 33,420 units in January-March 2024, down from 53,818 units in the corresponding period the previous year.
Which cities saw an increase in affordable home sales?
Kolkata and MMR saw an increase in affordable home sales, with sales rising to 3,741 units and 28,826 units, respectively.
What is the total income of PropEquity in the last fiscal year?
PropEquity reported a 37% growth in total income to Rs 44.17 crore last fiscal year, up from Rs 32.3 crore in 2022-23.
How many projects does PropEquity track across India?
PropEquity tracks over 173,000 projects from 57,500 developers across 44 Indian cities in real-time.
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