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No buyers for ‘cheaper’ homes in top 8 cities as sales fall by 4%

No buyers for ‘cheaper’ homes in top 8 cities as sales fall by 4%

New Delhi: Sales of affordable housing – priced up to Rs 60 lakh each – fell by 4 per cent to 61,121 units in eight major cities in January-March this year, due to lower supply and higher demand for luxury apartments, according to PropEquity.

The top eight cities are: Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune and Ahmedabad. Data from real estate analytics firm PropEquity showed that sales of residential properties, costing up to Rs 60 lakh each, stood at 6,3787 units during January-March last calendar year. A lower supply of affordable housing is one of the main factors behind this marginal sales decline.

According to PropEquity data, new housing supply, up to Rs 60 lakh each, fell to 33,420 units in these top eight cities from January to March 2024, against 53,818 units in the year-ago period. Builders are focusing more on launching luxury apartments to realize a surge in demand for premium homes. Profit margins are also high in luxury projects.

According to the data, residential sales in this price category fell to 2,35,340 units in the calendar year 2023, compared to 2,51,198 units in the previous year. In 2019, sales of residential properties, each priced up to Rs 60 lakh, stood at 2,26,414 units. During the calendar year 2020, when the COVID pandemic broke out, sales in this price category fell to 1,88,233 units. However, sales recovered in 2021 and 2022 to 2,17,274 units and 2,51,198 units respectively.

Sales fell again to 2,35,340 units in 2023 compared to the previous year. According to PropEquity data, sales of houses priced up to Rs 60 lakh in MMR rose to 28,826 units in the January-March period this year, compared to 23,401 units in the year-ago period. In Pune, sales fell from 14,532 to 12,299 units. Sales in Ahmedabad fell from 8,087 to 6,892 units.

Hyderabad saw a decline in sales from 3,674 units to 3,360 units, while Chennai witnessed a decline in sales from 3,295 units to 2,003 units.