Sales of homes priced under Rs 50 lakh declined by 9% in Q1 2025, attributed to high prices, mortgage rates, and low supply, according to Knight Frank.
Real estate consultant Knight Frank India data of primary residential market showed that sales in Rs 50 lakh to Rs 1 crore segment, too, fell 6 per cent to 26,832 units during the first quarter of this calendar year.
“While sales in the higher ticket sizes have been driving market growth, those in the Rs 5-10 million (Rs 50-100 lakh) and less than Rs 5 million (Rs 50 lakh) categories have dropped by 6 per cent and 9 per cent year-on-year, respectively as homebuyers focus remained on the premium category during the quarter,” the report said.
“As high prices and elevated interest rates kept homebuyers away from the market in this price-sensitive segment, the lack of supply also played a significant role in curtailing sales volumes,” the consultant added.
The higher margins and existing homebuyer interest in the premium and luxury segments attracted the bulk of development interest in January-March period.
In contrast, housing sales in Rs 1-2 crore price bracket increased 2 per cent to 22,330 units.
Similarly, sales in Rs 2-5 cr category rose 28 per cent to 13,735 units, while the demand in Rs 5-10 crore bracket grew 82 per cent to 3,448 units.
In the Rs 10-20 crore category of homes, sales more than doubles to 658 units. The demand in Rs 20-50 crore category jumped more than two times to 92 units.
Sales of homes, costing over Rs 50 crore each, jumped multi-fold to 169 units.
On Thursday, Knight Frank India released its report ‘India Real Estate: Residential and Office (January-March 2025)’, which showed stability in demand across primary (first sale) housing markets of eight major cities.
Housing sales in the January-March period rose 2 per cent to 88,274 units across eight major cities — Delhi-NCR, Mumbai Metropilitan Region (MMR), Kolkata, Chennai, Pune, Hyderabad, Bengaluru, and Ahmedabad.
