Real estate market has undergone significant transformation in recent years, marked by a notable surge in luxury home sales alongside persistent challenges in the affordable housing segment. Recent data reveals a remarkable uptick in luxury and premium property transactions, accounting for 21% of total sales in Q1 2024, a significant leap from the 7% recorded in Q1 2019.
In contrast, affordable housing challenges has experienced a decline, with sales dropping by 20% over the same period. This trend reflects changing consumer preferences and economic factors shaping the housing market dynamics.
Anuj Puri, Chairman of Anarock Group, attributes the rise in luxury home sales to increasing demand for larger homes in prime locations, particularly by branded developers. On the other hand, affordable housing’s retreat can be attributed to factors such as lower ticket sizes and changing market dynamics.
Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Pune, Gurugram (Haryana) and Hyderabad are among the cities witnessing significant shifts in housing trends. Luxury home sales have surged in Delhi-NCR, while mid-range and premium segments dominate sales in other cities.
Despite the decline in affordable housing sales, the sector remains crucial for addressing the housing needs of the masses. Efforts to promote affordable housing and improve accessibility to housing finance are essential for ensuring inclusive growth in the real estate sector.
As the housing market continues to evolve, stakeholders must adapt to changing consumer preferences and market dynamics. Balancing the demand for luxury homes with the need for affordable housing remains a key challenge for policymakers and developers alike.
