Mumbai (Maharashtra) [India], May 10 : The Indian residential property sector has witnessed a shift in the housing market dynamics in the first quarter of 2024, as revealed by the latest data from ANAROCK, the surge in the sales share of luxury homes, which has jumped to 21 per cent from a mere 7 per cent five years ago.
Conversely, affordable housing has seen a sharp decline, dropping to 20 per cent from 37 per cent in the same period.
In Q1 2024, of approximately 1.30 lakh homes sold across the top 7 cities, luxury homes priced above Rs 1.5 cr constituted a significant share of 21 per cent, accounting for around 27,070 units. This marks a drastic increase compared to Q1 2019 when luxury homes comprised only 7 per cent of total sales across these cities.
Anuj Puri, Chairman of ANAROCK Group, commented, "Around 26,545 affordable housing units were sold in Q1 2024, accounting for an overall sales share of 20 per cent in the top 7 cities. The mid-range and premium housing segment continued to rule the roost with approx. 76,555 units sold in the period - a near-59 per cent overall sales share. Affordable housing is nowhere near to recouping its stellar sales share in 2019."
In contrast, affordable housing units sold in Q1 2024 totaled around 26,545 units, representing a 20 per cent sales share across the top 7 cities. This is a significant decrease from the 37 per cent share witnessed five years ago.
Region-wise analysis reveals interesting trends. In the National Capital Region (NCR), approximately 39 per cent of the total units sold in Q1 2024 were luxury homes, amounting to around 6,060 units.
This is a substantial increase from the 4 per cent luxury sales share recorded in Q1 2019. Conversely, Kolkata saw the highest sales of affordable housing units, constituting a 49 per cent share of total sales in the city.
Bengaluru, Mumbai Metropolitan Region (MMR), Chennai, Pune, and Hyderabad experienced maximum sales in the mid-range and premium housing segments in Q1 2024.
Puri attributes the growing traction in luxury housing to the demand for larger homes in superior locations, especially by branded developers.
On the other hand, the decline in affordable housing sales is primarily due to lower ticket sizes. He suggests that any revival in the affordable housing segment would depend on further government incentives for both buyers and developers.
The disparity between luxury and affordable housing is also reflected in the new supply trends.
In Q1 2024, out of approximately 1,10,860 units launched across the top 7 cities, around 28,020 units were luxury homes, while only 19,980 units were in the affordable segment.
Five years ago, in Q1 2019, affordable housing comprised a staggering 44 per cent share of the total new supply across these cities, compared to the mere 18 per cent share in Q1 2024.
Conversely, luxury housing supply has steadily increased, constituting 25 per cent of the new supply in Q1 2024, up from 11 per cent in 2019.
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