Even middle class people now want to buy a house worth more than Rs 1 crore. This report of the firm is based on the demand for property in 8 big cities of the country. Houses worth Rs 1 crore which were once considered luxurious have rapidly become common.
New Delhi. In the Indian real estate sector, it seems that the days are over when people wanted cheap houses. At least the recent report of Housing.com and PropTiger.com says this. Now people want luxury houses, not cheap ones. Even if they have to pay crores of rupees for it. Even middle class people now want to buy a house worth more than 1 crore. This report is based on the demand for property in 8 big cities of the country, which shows how people’s attitude towards houses has completely changed after the Corona period.
Vikas Wadhwa, Group CFO of Housing.com and PropTiger.com, says that the concept of luxury housing has changed significantly in the last few years in big cities. Houses worth Rs 1 crore, which were once considered luxury, have become increasingly common. The demand of people has now increased and this is the reason why builders are also now putting more emphasis on building properties worth Rs 1 to 3 crore.
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what do the figures say
According to PropTiger.com, a trusted firm that issues reports on property and real estate sector, premium properties priced at Rs 1-3 crore accounted for only 16% of the total house sales in the top-8 markets of India in the first quarter of 2019. Now if we look at the figures of the March quarter in 2024, the share of such houses has increased to 37%. On the other hand, the demand for properties priced below Rs 45 lakh has declined. The share of this price was 25% in the first quarter of 2019, which has now become just 5%.
Developers also changed their strategy
Looking at the pattern of customer demand, developers in India are now paying more attention to the premium and luxury segment. If we look at the total new supply in the major eight cities in the first quarter of 2024, the share of houses priced between Rs 1-3 crore has been 33%. This simply means that now people do not want cheap houses, but luxury houses.
There will be competition from Dubai and Singapore
The report suggests that if this trend continues, India will emerge as a country where investable assets can increase by $22.5 trillion by the year 2034. The Indian real estate market can start competing with developed housing markets like Dubai and Singapore. The main reason for this is the development of luxury housing.
The days of affordable housing are not over yet
The above discussion was about people with high incomes, now let us talk about the large population of the country who still live in the lower middle class. The economic disparity in India is quite high. Hence, even today there is a demand for affordable and cheap houses. However, now it is shifting from big cities to smaller and tier 2 and tier 3 cities.
Home inflation will increase by 7% this year
According to a recent Reuters poll, average home prices in India may rise by 7% this year and next year. The world’s most populous country will continue to require social welfare schemes like the Pradhan Mantri Awas Yojana to provide homes to its poor and underprivileged. This is expected to keep the entire real estate sector booming.
Tags: Business news, Indian real estate sector, Property market, Real Estate
FIRST PUBLISHED : June 21, 2024, 17:39 IST