Affordable Housing Gains Luxury Loses Sheen

Although luxury housing has evolved at a breakneck pace in India, this sector does not still cater to the masses. On the contrary, affordable housing has boomed in India over the last 3-4 years. Additionally, Central Government’s commitment

Although luxury housing has evolved at a breakneck pace in India, this sector does not still cater to the masses. On the contrary, affordable housing has boomed in India over the last 3-4 years. Additionally, Central Government’s commitment to render ‘affordable housing for all’ like interest subsidy for low and economically weaker sections, has given much-required impetus to this sector. Even, most of the real estate developers have also started catering to the affordable housing as now a higher number of young migrants moving towards urban areas every coming day. 

According to a data provided by ANAROCK, “while there was a total decline of 41% in the overall new housing supply in 2017 from the preceding year, luxury properties priced over Rs. 1.5 crores saw the maximum fall of a staggering 49%.”

The percentage surely paints a murky picture for luxury housing, but it is not the death knell of this sector. Regardless of its comparatively small market size, luxury housing is still in demand and holds a vital position in Indian real estate.

Prashant Thakur, Head – Research, ANAROCK Property Consultants, sheds light on the reasons of a sharp decline in the demand of luxury property and stated that the clientele a luxury housing sector garner is entirely different. The robust Indian economy along with the rapidly growing of a few start-ups has given rise to a new breed of entrepreneurs who have not acquired ‘old wealth’ but earned it. And most of these people are millennials, who have risen above the middle-class median and preferred to live accordingly. Market sentiments and warnings signals do not sway such demand - it has its very own propulsion engine which does not run on regular fuel.

As per the report by Johannesburg-based New World Wealth, the number of millionaires in India was around 3, 30,000 in 2017 and it is predicted that the number will reach more than 9, 50,000 by 2027, that means an increase of 190 %.  And, India has the fourth-largest population of millionaires within the Asia-Pacific region, while in the Forbes list of the ‘World’s Billionaires’ for 2017, India accounts for an impressive 101. So, while luxury housing is not rising spectacularly, it has not lost its lustre completely. 

ANAROCK data reveals there is a notable and unexpected resilience in this sector.  According to that data, “Supply is picking up, albeit slowly: Data suggested a decline in luxury housing supply (homes priced over Rs. 1.5 crores) in 2017 over the preceding year.”

However, ANAROCK data reveals that in the first three quarters of 2018, this segment's supply increased by almost 29% across the top 7 cities over the corresponding period in 2017.

So, after all these findings, it is clear that the luxury segment is now catering to only those who cannot and will not afford to compromise. And therefore, most real state builders have shifted their focus almost entirely on affordable housing. And builders who are betting on luxury homes understood that they would get success only if they give utmost importance to quality, craftsmanship, location, and service standards of their luxury offerings.

About Surfaces Reporter

Surfaces Reporter is India’s 1st magazine specialized on “products & materials” for architecture & Interiors! The prime objective of Surfaces Reporter magazine is to contribute positively to the Indian material industry, with unbiased information & awareness initiatives.

Surfaces Reporter magazine has a clear & niche target group comprising of Architects, Engineers, Builders, Interior Designers, Manufacturers, Celebrities, Showrooms, Consultancy firms, and Leading Business houses, Hotels & Restaurants, and PMCs etc. If you have a Product or Project worth publishing in Surfaces Reporter, please email us hello@surfacesreporter.com or you can also submit your project online.

Like Surfaces Reporter on Facebook | Follow us on Twitter and Instagram | Subscribe to our magazine | Sign Up for the FREE Surfaces Reporter Magazine Newsletter

Post Your Comment




top stories

India has always been a sports-crazy nation, but the obsession with cricket in the country is incomparable to any other game. This is because of the tremendous success Indian cricket saw over the years.

5 World-Class Cricket Stadiums Are Under Construction in India and Bangladesh

India has always been a sports-crazy nation, but the obsession with cricket in the country is incomparable to any other ...

Bathing has always been a problematic thing for army personnel deployed at high altitudes of some 13 to 20 thousand feet in the Northern area of Himalayas.

An Alumnus of IIM Calcutta Develops a Waterless Bath Technology for Indian Army and Navy

Bathing has always been a problematic thing for army personnel deployed at high altitudes of some 13 to 20 thousand feet...

The season of merrymaking- Christmas- is here, and the celebrations are in full swing. If you are into a jolly holiday mood, dont forget to visit the Delhi shopping malls to enjoy the Christmas.

The Upscale Decorations in Delhi Malls on this Christmas

The season of merrymaking- Christmas- is here, and the celebrations are in full swing. If you are into a jolly holiday m...

More Stories