Increased demand for luxury homes
Homes at affordable prices are experiencing a surge in demand
Latest data released by Anarock
The real estate sector in the country is witnessing varied trends. Demand for homes is rising steadily. Residential sales are entering minimal inventory phases compared to the launch of new projects, leading to reduced inventory levels, according to leading real estate consultancy Anarock. Sales of luxury homes have increased significantly in Delhi, while inventory in this segment has decreased further. Significant appreciation has been noted in homes ranging from affordable to luxury, attributing a considerable change in demand. In the last two years, luxury home prices have increased by 20 percent, while prices of homes at affordable rates have surged even higher. It’s noted that affluent homes are witnessing a greater demand compared to regular homes.
Across seven major cities in the country, luxury home prices increased by 20 percent from 2019 to the current year. Meanwhile, affordable home inventory decreased from 37 percent to 20 percent during the same period. Indeed, new launches of luxury housing projects surged prior to COVID, starting with 25,770 luxury homes in 2019, which rose to 28,020 in the first quarter of 2024 alone. During this time, luxury home prices have increased by 40 percent, with luxury housing in seven major cities of the country being valued at Rs. 1.65 trillion in 2019 and reaching Rs. 5.25 trillion in 2024.
With more people opting for larger homes, demand has decreased for affordable homes but increased for luxury homes. Consequently, in the first quarter of 2024, a total of 130,170 homes were sold across the country, including 27,070 luxury segment homes. Currently, there are 76,555 mid to high-end segment homes and 26,545 affordable homes available. In Hyderabad alone, there were a total of 19,660 homes sold in Q1 2024, with 5,755 luxury residences, 13,620 mid to high-end homes, and 285 affordable homes available.
