2024-01-11 21:30:00
Home Sales Reach Record High in India, but Affordable Housing Sees Decline
A recent report by Knight Frank India has revealed that the total number of houses sold in 8 major cities of India reached an all-time high in 2023, with a total of 3,29,907 homes being sold. However, the report also highlighted a concerning trend in the decline of affordable housing sales.
According to the report, sales of houses priced below Rs 50 lakh have seen a significant 16 percent decline in 2023. In the previous year, a total of 1,17,131 affordable homes were sold, but this number dropped to around 97,983 in the assessment year.
The report also found that the new supply of affordable housing declined by 20 percent, contributing to the decrease in sales of this category. The decline has been attributed to rising home loan interest rates and price hikes, making it more challenging for buyers to afford homes in this price range.
Despite the decline in affordable housing sales, demand for mid-range homes priced above Rs 50 lakh and luxury homes has increased. Sales of mid-range and luxury homes have seen a surge, contributing to the overall record high home sales in the country.
Affordable housing, which accounted for 37 percent of home sales in 2022, has now decreased to 30 percent in 2023. On the other hand, the share of luxury homes priced above Rs 1 crore has increased from 27 percent to 34 percent.
The report indicates a shifting trend in the housing market, with a decrease in affordable housing sales and an increase in demand for mid-range and luxury homes. It will be important for policymakers and industry stakeholders to address the challenges facing affordable housing in order to ensure more inclusive and accessible housing options for all segments of the population.
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