Due to buyers’ inclination towards spacious and luxurious houses
In terms of profits, developers are also on the same path
Even though the real estate boom is continuing across the country, the sale of affordable houses is decreasing as many people prefer spacious and luxurious houses. Compared to the January-March quarter of last year, the sales of these houses decreased by 4 percent to 61,121 units in the same period this year in eight major cities of the country. Affordable houses priced below Rs 60 lakh saw 63,787 houses sold in the January-March quarter last year. But by this year, their sales have decreased. According to Prop Equity, factors such as low supply and people’s focus on luxury apartments are the main reasons for this.
Across the country, during the first quarter of the previous year, 52,818 homes were sold in the 27 major cities. However, in the first quarter of this year, the transactions have decreased to 33,420 units. Developers are emphasizing premium and luxury housing projects due to higher profitability with high-priced homes. Consequently, the average transaction prices and sales volumes for homes have declined. In 2022, a total of 2,51,198 homes were transacted, which reduced to 2,35,340 units in 2023. Similarly, after homes priced at Rs. 60 lakhs in 2019, 2,26,414 homes were transacted, whereas due to COVID-19, the units transacted decreased to 1,88,233 units in 2020. In 2021, there was a marginal recovery with 2,17,274 units transacted.
However, from 2022, sales began to rise, and from 2023, there was a gradual decline. A decrease in home transactions is also evident in Hyderabad. In the first quarter of the previous year, 3,674 homes were transacted, but this year, only 3,360 units were sold during the same period. The real estate conditions are particularly challenging in Mumbai due to significantly higher property prices. In the last quarter of the previous year, 23,401 homes were sold, while this year, the transactions increased to 28,826 units in the first quarter.
