Homes priced above Rs 1 cr corner highest share ever in total sales: Report

Those priced below Rs 50 lakh record dip in sales in January-March quarter: Knight Frank

Homes priced above Rs 1 crore had the highest share ever (40 per cent) in total sales in the quarter that ended on March 31, said a report on Thursday, noting that units cheaper than Rs 50 lakh retreated businesswise.

It was 39 per cent in the previous quarter. The share of such homes in total sales has been increasing each quarter, according to real estate consultancy Knight Frank. The share was 29 per cent in Q1 of calendar year 2023. It was 31 per cent in Q2 and 35 per cent in Q3.

The ‘India Real Estate: Office and Residential Report’ said 34,895 homes priced above Rs 1 crore were sold between January and March this year, 51 per cent higher than the same quarter in 2023.

The report said the price category drove home sales growth, recording its second-best quarter with 86,345 units. This was 9 per cent higher than 79,126 units in Q1 2023 and second only to 89,845 units in Q4 2023.

"This not only demonstrates a strong demand trajectory but also reflects buyers' confidence in making long-term commitments," said Shishir Baijal, chairman and managing director at Knight Frank India.

Homes priced below Rs 50 lakh and between Rs 50 lakh and Rs 1 crore witnessed a dip in total sales.

The sale of homes priced below Rs 50 lakh fell from 25,714 units in Q1 2023 to 23,026 units in Q1 2024. The share of these homes in total sales was 27 per cent.

It is significantly lower than its peak of 41 per cent in Q1 2022.

For homes priced between Rs 50 lakh and Rs 1 crore, the sales fell by 6 per cent during the quarter to 28,424 units. Their share in total sales was 33 per cent, lower than 38 per cent last year.

Most homes priced above Rs 1 crore were sold in the National Capital Region at 10,558 units followed by Mumbai (7,401) and Hyderabad (6,112).  

In NCR, these homes accounted for 68 per cent of the total sales volume.