Luxury Homes Take Center Stage: India's Residential Real Estate Market Shifts Gears
Homes priced above Rs 1 crore now dominate India's residential real estate market, indicating a trend towards upscale living
Luxury Real EstateIndian Residential MarketProptigerHomebuyersUpscale LivingReal Estate MumbaiJun 30, 2024
This trend is attributed to a growing inclination towards upscale real estate offerings, driven by factors such as increased disposable income and changing lifestyle preferences. According to industry experts and realtors, the cost of materials, labour, and land prices have risen sharply, making low-income projects unviable. As a result, realtors are no longer launching homes priced under Rs 25 lakh, and sales are mainly happening from the existing inventory.
The data from PropTiger reveals that homes priced between Rs 45-75 lakh are the second largest category, with a stable market share of 26% 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.
In contrast, the luxury segment is thriving, with homes priced above Rs 1 crore experiencing a consistent increase in sales. This shift in buyer behavior is indicative of a growing demand for high-value acquisitions, driven by factors such as increased disposable income and changing lifestyle preferences.
PropTiger, a leading online real estate marketplace, provides a platform for homebuyers to explore and invest in properties that meet their evolving needs and preferences. The company's data and insights provide valuable insights into the Indian residential real estate market, helping homebuyers and investors make informed decisions.
Information
PropTiger is a leading online real estate marketplace that provides a platform for homebuyers to explore and invest in properties that meet their evolving needs and preferences. The company's data and insights provide valuable insights into the Indian residential real estate market, helping homebuyers and investors make informed decisions.
Frequently Asked Questions
What is the current market share of homes priced above Rs 1 crore in India?
The market share of homes priced above Rs 1 crore is 37% of the overall housing market in India in Q1, 2024.
What is the reason behind the decline in sales of homes priced under Rs 25 lakh?
The decline in sales of homes priced under Rs 25 lakh is due to the sharp rise in the cost of materials, labour, and land prices, making low-income projects unviable.
What is the market share of homes priced between Rs 45-75 lakh in India?
The market share of homes priced between Rs 45-75 lakh is 26% of the overall housing market in India.
What is driving the demand for luxury homes in India?
The demand for luxury homes in India is driven by factors such as increased disposable income and changing lifestyle preferences.
What is PropTiger's role in the Indian residential real estate market?
PropTiger is a leading online real estate marketplace that provides a platform for homebuyers to explore and invest in properties that meet their evolving needs and preferences.
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