Luxury Housing Market Booms in India, Affordable Segment Struggles to Keep Pace
India's real estate market is witnessing a significant shift, with luxury homes taking the lead in the latest sales figures. Mumbai, Bengaluru, and Pune are leading the charge, while luxury homes dominate the market.
Luxury HousingReal Estate MarketIndiaAffordable HousingKnight Frank IndiaReal Estate PuneOct 03, 2024
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 trend in India's real estate market?
The luxury housing segment is booming, while the affordable segment is struggling to keep pace.
Which cities are leading the charge in India's real estate market?
Mumbai, Bengaluru, and Pune are leading the charge, with the highest number of units sold in Q3 2024.
What is the reason for the decline in sales of affordable homes?
Rising interest rates on home loans and limited inventory in the affordable sector have contributed to the decline in sales of affordable homes.
What is the future outlook for India's real estate market?
The demand for premium properties is expected to grow, making the future look bright for high-end real estate.
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 analysis on the Indian real estate market.
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