Affordable Housing Sales Dip Amid Rising Premium Segment Demand

Sales of affordable homes, priced under Rs 50 lakh, dropped by 9% in early 2023 across major Indian cities due to high costs, increased interest rates, and limited supply. However, demand in premium housing segments saw significant growth, as reported by Knight Frank India.

The sale of affordable homes in India, each priced under Rs 50 lakh, saw a decline of 9% in the first quarter of 2023, according to a report by Knight Frank. The report cites high prices, elevated mortgage rates, and low availability as key factors contributing to this drop.

Conversely, the real estate market witnessed a surge in sales within the premium and luxury segments. Homes priced between Rs 1-10 crore experienced an increase in demand, with sales in some categories growing by as much as 82%.

Overall, housing sales across eight major cities in India rose by 2% to reach 88,274 units in the first quarter. The trend highlights a shift in homebuyer preference towards premium housing options, driven by higher margins and consistent demand.

(With inputs from agencies.)