Shift in Indian Real Estate Market: Luxury Homes Lead the Way
The Indian residential real estate market has witnessed a significant shift post-Covid, with luxury homes priced above Rs 1 crore now forming the largest segment.
Indian Real Estate MarketLuxury HomesProptigerResidential Real EstateHousing MarketReal Estate NewsJun 30, 2024
This significant increase is a result of steady price rises, which have caused a major shift in the dynamics of the residential real estate market. Just a year ago, homes priced above Rs 1 crore formed 24% of the market, meaning its share has grown by a whopping 13 percentage points.
In contrast, homes priced between Rs 45-75 lakh, which were once the largest category, now form the second largest segment with 26% of the market. 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 steepest decline has been in the lowest price band - homes priced up to Rs 25 lakh. From 25% of the overall market in Q1, 2019, its share has plummeted to 5% in Q1, 2024. According to industry experts, steep rises in the cost of materials, labour, and land prices have made such low-income projects unviable.
Industry analysts believe that this trend suggests a growing inclination towards upscale real estate offerings, potentially driven by factors such as increased disposable income and changing lifestyle preferences. As the market continues to evolve, it will be interesting to see how the luxury segment grows and what implications it has for the overall real estate market in India.
Information
PropTiger is a leading online real estate platform that provides comprehensive data and insights on the Indian residential real estate market.
PropTiger is a part of Elara Technologies Pte Ltd., which also owns Housing.com and Makaan.com.
Keywords Indian real estate market, luxury homes, PropTiger, residential real estate, housing market
Frequently Asked Questions
What is the current largest segment in the Indian residential real estate market?
Homes priced above Rs 1 crore are currently the largest segment in the Indian residential real estate market.
What has led to the rise of luxury homes in India?
Steady price rises have caused a major shift in the dynamics of the residential real estate market, leading to the rise of luxury homes.
What is the share of homes priced between Rs 45-75 lakh in the Indian housing market?
Homes priced between Rs 45-75 lakh form the second largest segment with 26% of the market.
Why have affordable homes lost momentum in the Indian real estate market?
The share of affordable homes priced between Rs 25-45 lakh has shrunk due to steep rises in the cost of materials, labour, and land prices.
What does the trend towards luxury homes suggest about buyer behavior?
The trend suggests a growing inclination towards upscale real estate offerings, potentially driven by factors such as increased disposable income and changing lifestyle preferences.
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