Homebuyers are now increasingly in favor of buying homes that are spacious and come with world-class amenities. In recent times, homes are not only living spaces but also experiences for boosting the overall quality of life without any compromises on luxury. These are aspects that are primary drivers of sales growth in the mid-segment and premium home categories over affordable units. Sales growth for mid-segment units was 35% in H1 2022 and has gone up to 38% this year as per reports. Premium home sales have gone up to 30% from 25% earlier and sales figures have come down to 32% from 40% for affordable homes.
The rise in demand for mid-segment and premium homes is the highest since 2018 as per industry reports. H1 2023 has seen 59,563 mid-segment units and 47,130 premium units being sold. Experts feel that average incomes of buyers are improving and this is spurring evolving consumer preferences. If the total launches in H1 2023 are observed, then mid-segment and premium categories are leading with shares of 42% and 35% respectively.
The Founder and COO, Square Yards, Kanika Gupta Shori, feels that this shift in consumer preferences is an indicator of the maturity and confidence of homebuyers with regard to the potential higher returns on investment and long-term value of premium property units. She states that even an increase in property prices and rates of interest have been no deterrent for homebuyer aspirations, indicating their current purchasing power and improved economic conditions. Some experts also feel that the propensity to invest in bigger homes in Tier-1 cities is indicative of consumer willingness to stay in it for the long haul.
Luxury developers have thus been encouraged to launch projects across newer micro markets, enabling posh lifestyles beyond only a few pin codes. Some industry experts also feel that infrastructural development will also fuel this momentum in the housing market. In Mumbai, for instance, redevelopment ventures will transform the skyline with more premium housing projects according to industry watchers. Many experts also feel that higher demand for luxury and mid-range housing is also indicative of the overall growth prospects of the real estate industry and its health. It indicates economic prosperity, potential for investments, and infrastructure development, while having a spillover effect on several other categories. At the same time, while affordable housing currently has a lower share of the pie, it will remain an important category in the future, being a focal area of the Government. The future thus promises several attractive opportunities for both buyers and developers.
