The share of luxury housing in the supply of all segments of housing units in Tier 1 cities has risen to 12% in the second quarter of 2022, from 8% in Q2 2021, as per a report by PropEquity.
The second quarter of 2022 saw a total supply of 77,941 housing units, with the affordable housing segment commanding a share of about 63% (48,993 units), followed by mid-segment at 26% (19,910 units) and the share of luxury units being 12% (9,132 units). The share of luxury segment in sales pan India has increased from 8% in Q2 2021 to 12% in Q2 2022 (Y-o-Y basis).
Mumbai is ranked number one in terms of luxury sales and supply in the second quarter of 2022, followed by Hyderabad. The affordable segment had a share of 63% in overall supply in Q2 2022 across all Tier 1 cities while the mid segment had a share of 26% in overall supply.
In terms of sales, Q2-2022 recorded total sales of 1,02,311 units, out of which the largest share was of the affordable segment at about 64% (65,173 units), followed by the mid-segment at 25% (26,484 units) and the share of luxury units being 10% (10,654 units).
“In the last one year we have been witnessing the revival of luxury housing across top cities in India and this trend will continue to grow in the coming quarters. Demand for affordable housing in top metros is being replaced by the demand for mid-segment and luxury housing as with higher disposable income, nuclear families are looking for properties having premium amenities and larger built-up area, that too in a well-developed location,” said Samir Jasuja, Founder and Managing Director at PropEquity.
“Luxury housing in the country has remained resilient during the last two years and now is witnessing an uptick with new launches and rightly located projects being sold out in a few weeks. We believe projects by branded and fundamentally strong developers would continue to witness strong demand even with inflationary roadblocks,” said Abhishiekh Andlay, Founder of Andlay Estates.
For affordable housing, Thane was the best city in terms of supply and sales, and for mid-segment, Hyderabad led the ranking for sales and Mumbai for supply.