Housing Market Trends in India
It’s a common dream for many to own a house. However, recent changes in the real estate market are making this dream harder to achieve for many. A new report indicates that there has been a significant 30% decrease in the purchase of homes priced below Rs 1 crore.
Despite the drop, the demand for housing hasn’t vanished. Builders are increasingly focusing on luxury homes, which has led to a shortage of budget-friendly housing options.
In the past year, the supply of affordable and middle-income homes (priced up to Rs 1 crore) in nine major cities across the country has fallen dramatically. The number of new units available dropped from around 2.83 lakh in 2023 to about 1.99 lakh in 2024. This trend is concerning as many people migrate to these cities for job opportunities.
The decline in affordable housing is alarming. For instance, in 2022, the supply was even higher at 3.10 lakh units. With rising urban migration and the increasing number of single-family households, the need for affordable housing is clear. Experts estimate that in the next five years, about 1.5 crore houses will be needed in these cities.
If the government doesn’t address this issue soon, there could be a housing crisis similar to what has been seen in countries like Australia and Canada. The focus on luxury homes must be balanced with the urgent need for affordable housing for the growing population in urban areas.
Housing Market Summary in India
| Key Information | Details |
|---|---|
| Decrease in Affordable Housing Supply | 30% decrease in homes priced below Rs 1 crore in 2024 compared to previous years. |
| Units Supplied in 2024 | 1,98,926 units (compared to 2,83,323 in 2023 and 3,10,216 in 2022). |
| Focus Shift of Builders | Builders are increasingly focusing on luxury homes, leading to a decrease in affordable housing supply. |
| Potential Housing Crisis | If the government does not address the supply issues, a crisis similar to that in Australia and Canada may occur. |
| Projected Housing Demand | Estimated need for 1.5 crore houses in major cities over the next five years due to increasing migration and single-family growth. |
