Luxury Housing Market Booms in India, Affordable Segment Lags Behind
Mumbai, Bengaluru, and Pune lead the charge in India's luxury housing market, while mid-range and affordable homes struggle to keep pace.
Luxury Housing MarketAffordable HousingReal Estate MarketIndiaKnight Frank IndiaReal Estate MumbaiOct 03, 2024
The spotlight, however, is on the luxury segment. Homes priced above ₹1 crore have surged by a staggering 41% year-on-year. This is a clear indication that affluent buyers are driving the current boom in India’s property market, with demand for premium homes rising sharply. While the luxury market thrives, the mid and affordable housing segments have struggled to keep pace. Sales of homes in the ₹50 lakh to ₹1 crore range have dropped by 13%, and those priced under ₹50 lakh have seen a 14% decline.
Rising interest rates on home loans and limited inventory in the affordable sector have contributed to this slowdown.City-wise, Mumbai led the pack, recording the highest number of units sold at 24,222, followed by Bengaluru and Pune. These cities continue to be hotspots for real estate investment, driven by a combination of urbanization and high demand for quality housing.
On the other hand, the National Capital Region (NCR) experienced a 7% dip in sales, primarily due to low inventory in the mid and affordable segments. The trend highlights a growing divide in India’s housing market, where high-end properties are flourishing while the affordable segment struggles with challenges. Developers are increasingly focusing on luxury offerings, making it harder for budget-conscious buyers to find suitable homes.
As India’s real estate market evolves, it’s clear that the luxury segment is playing a dominant role, reshaping the industry’s landscape. With the demand for premium properties expected to grow, the future looks bright for high-end real estate.
Frequently Asked Questions
What is the current state of India's luxury housing market?
India's luxury housing market is booming, with sales of homes priced above ₹1 crore surging by 41% year-on-year.
Why are mid-range and affordable homes struggling in India?
Mid-range and affordable homes are struggling in India due to rising interest rates on home loans and limited inventory in the affordable sector.
Which cities are leading the charge in India's luxury housing market?
Mumbai, Bengaluru, and Pune are leading the charge in India's luxury housing market.
What is the outlook for India's real estate market?
The outlook for India's real estate market is positive, with the luxury segment expected to continue to play a dominant role and the demand for premium properties expected to grow.
What is Knight Frank India's role in the real estate market?
Knight Frank India is a leading real estate consultancy that provides research and advisory services to the real estate industry.
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