Luxury housing outselling affordable homes in India – Top reasons

financialexpress.com:

In a groundbreaking shift in the Indian real estate industry, the demand for luxury homes has outpaced that of affordable housing for the first time in India. This momentous development emerged during the July-September quarter, as revealed in a recent report by real estate consultancy Knight Frank.

During this quarter, 82,612 housing units were sold in India, marking a six-year high and a 12 percent increase over the 73,691 units sold in the corresponding quarter of the previous year. Notably, the high-end housing market, with prices exceeding Rs 1 crore, outstripped the demand in the affordable segment, priced below Rs 50 lakh.

Within the high-end category, homes priced between Rs 50 lakh and Rs 1 crore took the lead, accounting for 36 percent of the market share with 29,827 units sold. Sales in this segment surged by an impressive 14 percent year-on-year, with significant contributions from cities like Bengaluru, Pune, and Mumbai.

Also Read: 5 important things to consider before foreclosing your home loan

Close behind was the luxury market, boasting a 35 percent market share. This segment experienced a remarkable 39 percent quarter-on-quarter increase in sales, soaring to 28,642 units, up from 20,501 units the previous year. The National Capital Region (NCR) recorded the highest sales followed by Mumbai, and Bengaluru in this category.

In stark contrast, the affordable housing segment, homes priced below Rs 50 lakh, witnessed a decline in market share, dropping to 29 percent from 36 percent the previous year. Only 9,930 units were sold in this category during the quarter, compared to 10,198 units in the same quarter last year. Significantly, the current market share of affordable homes stands far below the 54