Following the Covid-19 pandemic, India's housing market has increasingly demonstrated a marked shift towards the luxury segment . Meanwhile the price-sensitive affordable housing market has taken a progressive hit owing to a host of factors including rising interest rates, property price rise and declining supply, among others. Earlier this week, addressing a virtual press conference, Knight Frank India CMD Shishir Baijal flagged concerns plaguing the affordable housing segment in India.
“Sales of homes priced below ₹ 50 lakh have declined for yet another quarter highlighting persistent challenges to affordability and availability,” he said. According to Knight Frank's report on real estate activity in the third quarter of the ongoing calendar year, 46% of the total home sales across the top eight cities in India were concentrated in the luxury housing category which comprises homes priced at ₹ 1 crore and above. Also Read: Housing sales decline by 11% YoY across top seven cities in Q3 2024; Mumbai, Bengaluru lead supply Meanwhile the mid ( ₹ 50 lakh - 1 crore) and affordable housing (under ₹ 50 lakh) segments recorded a year-on-year decline of 13% and 14%, respectively.
Of the total 87,108 homes sold in the quarter ended September 2024, 40,328 units belonged to the ₹ 1 crore and above category. Simultaneously, the ₹ 50 lakh - 1 crore bracket and the under ₹ 50 lakh club accounted for 26,011 and 20,769 units, respectively. More than one rationale With the ex.