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A recent ANAROCK report analysed housing trends across the top 7 cities in India from Q1 2019 to Q1 2024. A key finding was the rising prominence of luxury housing segments compared to affordable housing. In Q1 2024, luxury homes accounted for 21% of unit sales versus just 4% in Q1 2019. New luxury housing supply also increased from 9% of total launches in Q1 2019 to 25% in Q1 2024. Meanwhile, affordable housing sales declined from 37% to 20%. Non-luxury segments gained greater share in cities like Bengaluru, Chennai, Hyderabad and Pune. The data indicates developers are aligning new project launches more towards prevailing demand for higher-priced luxury properties.
The Indian residential property sector saw strong growth in sales and new launches in Q1 2024. However, gains are increasingly uneven across price segments. According to ANAROCK data, luxury housing is gaining market share while affordable housing continues to decline. Advertisement
Of the approximately 130,170 units sold across the top 7 cities in Q1 2024, luxury homes priced over INR 1.5 crore accounted for 21% or around 27,070 units. This is a sharp contrast to five years ago in Q1 2019 when affordable housing was at its peak with a 37% share of around 78,525 units sold. Luxury housing then had a mere 4% share.
City-wise trends also show variations. In NCR, where around 15,645 units were sold, luxury housing sales of around 6,060 units comprised 39% of the total. Meanwhile in Kolkata, where around 5,650 units were sold, affordable housing saw the highest sales of around 2,765 units or 49% of the total.
While Kolkata has maintained similar trends, NCR saw a major reversal - from affordable segment dominating sales in Q1 2019 to recording the lowest share in Q1 2024. Bengaluru, MMR, Chennai, Pune and Hyderabad saw their highest sales in the mid-range and premium segments priced between INR 40 lakh to INR 1.5 crore.
Of the approximately 110,860 units launched across top cities in Q1 2024, around 28,020 units (25%) were luxury homes while just 19,980 units (18%) were affordable. Five years ago in Q1 2019, out of around 70,480 total launches, affordable housing comprised 44% while luxury was a mere 9%. Developers are now aligning supply more with prevailing demand for luxury segments.
Comparing the past five years, the new supply and sales share of luxury homes has risen steadily from 11% pre-Covid 2019 to 25% in Q1 2024. Luxury launches have grown from around 25,770 units in all of 2019 to 28,020 units just in Q1 2024. Meanwhile, affordable housing has seen a major reversal with its new supply share dropping from 40% in 2019 to just 18% in Q1 2024.
The shifting trends highlight important changes in the Indian property market. Rising incomes have expanded the potential customer base for luxury homes. At the same time, developers find luxury projects more profitable than affordable segments. If these trends hold, luxury and mid-range housing are poised to dominate new launches and sales in the coming years. However, continued policy support will be needed to ensure affordable options remain available for all income segments. The housing sector's future growth depends on meeting demand across property types and price points.
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