India Housing Market: In the first half of 2023, sales of mid-segment housing priced above Rs 50 lakh have been seen more than affordable housing in the country. According to a report, despite the increase in the prices of houses, there has been a boom in the sales of mid-segment housing. During this period, there has also been an increase in the sales of premium housing i.e. expensive houses.
Decreasing sales of affordable housing
Property consultant Knight Frank has released the India Real Estate – Residential and Office Market January – June 2023 report. According to the report, the share of sales of homes priced below Rs 50 lakh has come down from 43 per cent in the second half of 2020 to 32 per cent in the first quarter of 2023. According to the report, the sales of affordable segment homes have been decreasing during this period, yet till the first half of 2022, the sales of this segment were being seen the most in terms of volume. But the second half of 2022 and the first half of 2023 is the second consecutive half when more mid-segment homes have been sold than affordable homes.
Sales of homes priced above Rs 1 crore up by 9%
According to this Knight Frank report, the share of mid-segment homes in the price range of Rs 50 lakh to Rs 1 crore increased from 36 per cent to 38 per cent in annual sales during the same period. While the share of sales of Rs 1 crore homes has increased from 21 per cent to 30 per cent. According to the report, the effect of the Kovid epidemic was not seen on the high income group as was being estimated. Rather, due to weak sentiment, high saving rate and lockdown have played a decisive role in boosting the demand for houses.
Housing demand neutralized by costlier loans
Knight Frank’s report states that the first quarter of 2023 sales volume has remained stable but the prices of houses in eight major cities of the country have seen a jump of 2 to 10 percent. In which the prices have increased by 6 percent in Mumbai and 5 percent in Delhi, Bengaluru. It was said in the report that despite the jump in home loan interest rates, the residential market is seeing a boom in demand.
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