High End Housing Dominates New Launches

Housing Market in India

In the wake of rising demand for luxury housing, new launches across India’s major housing markets are seeing a notable increase in new launches of high-end homes.

According to the quarterly report titled, ‘ Real Insight: Residential April-June 2024’, 43 percent of all new launches in India’s eight prime residential markets during these three months, were priced above one crore rupees.  Moreover, housing units within this price bracket accounted for 38 percent of quarterly sales. The 8 markets in the survey report included Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, MMR (Mumbai, Navi Mumbai and Thane), Pune and Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad)

Ticket-wise split for launches and sales during Q2 CY – 2024:

Source: Real Insight: Residential April – June 2024, Housing Research

*Note: Numbers rounded off to the nearest thousand.

Source: Real Insight: Residential April – June 2024, Housing Research

*Note: Numbers rounded off to the nearest thousand.

As per the research data, a total of 101,677 units were launched during the quarter that ended June 30, showcasing a marginal decline of 1 percent from the previous quarter wherein 1,03,020 units were launched. On the other hand, 113,768 units were sold in Q2 2024 against 120,642 in the March quarter.

“The share of affordable housing has been affected in sales as well as launch numbers in the past few quarters, primarily due to higher demand for bigger homes offering more amenities. In larger cities, the rising costs of construction and land prices are making it increasingly challenging for developers to deliver homes within the Rs. 45 lakh budgets (affordable category). As a result, there are fewer launches in this segment. On the other hand, the adverse impact of rising property prices on demand can also not be overlooked. While the rise in demand for high end homes is indicative of the rising income levels in one of the fastest growing economies in the world, affordable housing’s dipping share is a matter of concern for the world’s most populous country,” says Vikas Wadhawan, CFO, REA India and Business Head, PropTiger.com”

Only 15 percent of units in the new supply were in the price bracket of up to Rs 45 lakh, the government-defined benchmark for affordable housing in the country. In terms of quarterly sales, the percentage was comparatively higher at 25 percent. However, with the launch of PMAY 2.0 along with the interest subsidy scheme in the budget, coupled with tweaks in the income tax structure, leading to an increase in disposable income, affordable housing may well see a revival with its sales share going up.

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