The country's real estate market is seeing a tremendous boom in the premium and luxury segment, while the demand for affordable housing is continuously weakening. According to the latest reports of Housing and Indian School of Business (ISB), the country recorded a 12% increase in the number of high-net-world individuals (HNIS) and ultra-high-net-forth individuals (UHNIS), which has led to a boom in sales of expensive homes.
Boom in luxury segment, affordable segment declines
According to the report, in December 2024, the All-India Housing Price Index (HPI) has increased to a record level to 4 points. The special thing is that there has been a rapid increase in demand for 3BHK and large flats, causing the HPI of this segment to reach 141 points - which is a 11 point jump as compared to January 2024. On the contrary, sales of small houses like 1bhk have declined and their index has fallen from 123 to 117.
Strong demand in big cities, NCR leads
Delhi-NCR has emerged as the fastest growing housing market in the country. The housing price index here has reached 195 points, which is the highest in the country. The development of infrastructure in areas like Dwarka Expressway, Noida Extension and Sohna and the activation of high -income buyers has given a new height to the demand.
The situation of real estate in IT hub Bangalore and Hyderabad also remains strong, where property prices are continuously increasing due to growth and increasing employment opportunities of tech companies.
Buying a house for middle class became difficult task
However, there is also a dark aspect of this growth. Increased property prices, land costs and increase in construction expenses are now making it extremely difficult to buy a house for middle class. According to the report, the demand in the affordable housing segment is decreasing despite the government's plans - such as tax exemption and concession in interest rates.
What are the experts saying?
CEO Dhruv Aggarwal, Group of Housing.com and Protiger.com, said, "India is now the fifth largest economy in the world, and the rise in property prices is a proof. But it is also true that this is increasing the pressure on the middle class."
The report also stated that now buyers are getting more attracted towards open spaces, wellness facilities and high-end connectivity projects.
This trend indicates a change in real estate
Regarding this change of real estate market in India, experts believe that this trend reflects the changes in the economic development and social structure of the country. While demand for premium property has increased on the one hand, on the other hand the availability of affordable housing for the middle class is decreasing. With this increasing inequality, it can become a challenge for the government how it can provide proper housing to middle class and low income group through proper and cheap housing schemes. Experts also believe that in the coming time, various segments of real estate will need to maintain further balance so that all classes can benefit.
FAQs
1. Why are luxurious homes booming in India proper now?
High-internet-properly worth individuals (HNIs), NRIs, and affluent millennials are using name for for luxurious houses due to a desire for larger living regions, top magnificence centers, and lifestyle upgrades—mainly after the pandemic emphasised home comfort and well being.
2. What is causing less expensive housing to emerge as lots less available for the center beauty?
Rising land prices, better production cloth expenses, and decreased authorities incentives for lower priced housing have brought about fewer rate variety-pleasant projects, pushing home charges past the attain of average center-elegance consumers.
3. Are builders transferring their focus away from low fee housing?
Yes, many builders are prioritizing top class and comfort responsibilities because they offer higher margins and cater to a extra financially secure clients, decreasing monetary risk in an uncertain financial device.
4. How is the government addressing the low-price housing hole?
Schemes like PMAY (Pradhan Mantri Awas Yojana) and interest subsidies nevertheless exist, but specialists argue greater desires to be performed—like easing approval methods, developing land availability, and imparting tax breaks to developers focused on low-fee housing.
5. What can the middle beauty do if cheaper housing alternatives are shrinking?
Many are exploring options which encompass smaller units, houses in peripheral town areas, or co-possession fashions. Additionally, digital structures and fintech enhancements are making it less difficult to cozy higher domestic mortgage phrases and discover off-market offers.
