Affordable Homes Sales Drop by 4% in Major Indian Cities Amid Luxury Demand Surge

The sales of affordable homes priced up to Rs 60 lakh dropped by 4% across eight major Indian cities in January-March 2024 due to a shift in focus towards luxury apartments. The decline is attributed to a lower supply of affordable housing units and higher demand for premium residential properties.

In a notable shift within the housing market, sales of affordable homes priced up to Rs 60 lakh in eight major Indian cities saw a decline of 4% in the first quarter of 2024. This downturn is attributed to a reduced supply of affordable housing units as builders pivot towards the more lucrative segment of luxury apartments, spurred by increasing demand.

The major cities affected include Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. PropEquity, a prominent real estate data analytics firm, reported that affordable home sales stood at 61,121 units during January-March this year, down from 63,787 units in the same period last year.

Builders have been focusing on luxury projects due to higher profit margins, leading to a significant drop in the fresh supply of affordable homes from 53,818 units last year to 33,420 units in 2024. This trend comes as the real estate market responds to evolving consumer demands and economic conditions.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)