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Luxury Sales Share At 21% from 7% in 5 Yr, Affordable Housing Down to 20% fm 37%

Mumbai, May 10, 2024:  The Indian residential property sector surged relentlessly on in Q1 2024 in terms of both sales and new launches, but the gains are increasingly uneven across budget segments. Latest ANAROCK data comparing luxury and affordable housing sales share shows luxury gaining markedly while affordable housing continues bleed.

Of approx. 1,30,170 units sold across the top 7 cities in Q1 2024, the share of luxury homes priced >INR 1.5 Cr was 21%, or approx. 27,070 units. This contrasts sharply with the trend of five years ago. In Q1 2019, affordable housing was at its peak, holding a share of 37% out of approx. 78,525 units sold across the top 7 cities. Luxury housing had a mere 4% share.

“Around 26,545 affordable housing units were sold in Q1 2024, accounting for an overall sales share of 20% in the top 7 cities,” says Anuj Puri, Chairman – ANAROCK Group. “The mid-range and premium housing segment continued to rule the roost with approx. 76,555 units sold in the period – a near-59% overall sales share. Affordable housing is nowhere near to recouping its stellar sales share in 2019.”

In terms of regions, there are interesting variations. City-wise data indicates that of approx. 15,645 units sold in NCR in Q1 2024, the highest sales – approx. 6,060 units or a 39% share – were in the luxury segment (units priced >INR 1.5 Cr). On the other hand, of approx. 5,650 units sold in Kolkata in the same period, affordable housing saw the highest sales of approx. 2,765 units, or a 49% share.

While Kolkata continues to have similar trends as in Q1 2019, NCR saw a major trend reversal in this five-year period – from affordable segment having the lion’s share in Q1 2019 to it slipping to the lowest in Q1 2024.

Bengaluru, MMR, Chennai, Pune, and Hyderabad, on the other hand, saw their highest sales in the mid-range and premium housing segments (priced between INR 40 lakh and INR 1.5 Cr) in Q1 2024.


“As luxury homes gain more traction in both new supply and sales, affordable housing continues its retreat to the sidelines. The luxury segment is driven by a mounting appetite for bigger homes by branded developers in superior locations,” says Puri. “Affordable housing, on the other hand, is driven primarily by lower ticket sizes. The downward spiral of this erstwhile posterchild of the Indian housing industry began during the pandemic, and then morphed into a broader malaise. Even as the nation awaits the results of the ongoing general elections, any affordable housing revival will hinge on further government sops and incentives for buyers and developers.”

Of approx. 1,10,860 units launched in Q1 2024 across the top 7 cities, approx. 28,020 units (or 25%) were luxury homes and just 19,980 units (18%) were in the affordable segment. Five years ago, in Q1 2019, out of approx. 70,480 units launched across the top 7 cities, affordable housing comprised a whopping 44% share while luxury had mere 9% share. It is little wonder that developers are aligning supply with the prevailing demand and are launching more luxury housing projects now.

Segment Wise Sold Units Q1 2024
CityAffordable SegmentMid & High-End SegmentLuxury SegmentTotal
PAN India26,54576,55527,0701,30,170

Source: ANAROCK Research

Affordable vs Luxury – 5-year Trends

If we consider the past five-year data trends, the new supply and sales share of luxury homes has been rising steadily. In pre-Covid 2019, luxury homes accounted for approx. 11% of the overall new supply in top 7 cities. In Q1 2024, this share has gone up to a whopping 25%. 2019 saw only approx. 25,770 units launched in the luxury segment in the entire year; currently in Q1 2024, 28,020 luxury homes were launched in just this one quarter.


Luxury Housing Supply Share across Top 7 Cities
Year20192020202120222023Q1 2024
Total Unit Supply across all budget categories2,36,5601,27,9602,36,6903,57,6354,45,7701,10,860
% Supply Share of Luxury Homes (>INR 1.5 Cr.)11%9%11%17%23%25%
Total Unit Supply of Luxury Homes25,77011,49024,98060,2501,00,35528,020

Source: ANAROCK Research

Affordable housing, however, has seen a major trend reversal. This segment has seen its new supply share shrink considerably over the last five years. In 2019, the new supply share of affordable homes stood at 40% out of the overall new supply additions (approx. 2.37 lakh units) in the top 7 cities. However, in Q1 2024, data indicates that its supply share has dropped to a mere 18% of the total new launches.

Affordable Housing Supply Share across Top 7 Cities
Year20192020202120222023Q1 2024
Total Unit Supply across all budget categories2,36,5601,27,9602,36,6903,57,6354,45,7701,10,860
% Supply Share of Affordable Homes40%30%26%20%18%18%
Affordable Supply94,62038,39061,54071,53080,24019,995

Source: ANAROCK Research