LUXURY HOMES ON TAP BUT 'HOUSING' IN CRISIS

IT is only the rich who seem to be buying homes. New money is being pumped into larger, more stylish homes. On the other hand, the middle and poor are feeling the pinch of high prices and are holding back. Sales in the affordable and mid segments are down as resistance mounts against runaway prices.

- GURBIR SINGH

Property rating agency Liases Foras' latest second quarter review shows though sales surged 15% for the July-September 2025 quarter to ₹8.3 lakh crore in comparison with the previous year, in terms of units sold there was no appreciable growth. The agency, which claims to have surveyed 75 cities, said the robust sales figures was on account of two factors: a 3% average increase in prices and growth in sales of luxury homes. Apartments priced above ₹2 crore saw 24% increase in sales volume, with the ultra-Luxury segment, ₹10 crore and above, leading with a mammoth 40% year-on-year growth, the report says.

"Conversely, the 'affordable' (₹30-50 lakh) and 'mid'-segments (₹50-75 lakh) saw volumes decline by 13% and 7%, respectively, suggesting that the current growth cycle is highly concentrated at the top end of the market," said Pankaj Kapoor, MD of Liases Foras, in a statement.

The Pune real estate market, a big-city bellwether, seemed to corroborate Liases Forras' findings. Property broker Knight Frank said the city's property registration in October, this year fell 39% to 12,693 units, while stamp duty collection was down 30% to ₹527 crore.