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Nearly half of the total housing demand in the primary residential market across eight major cities is for two-bedroom apartments costing up to 45 lakh, according to a report.

While analysing the sales numbers of metros, digital real estate brokerage firm PropTiger.com found out that around 45% of sales in the January-March quarter were affordable housing segment – apartments priced below 45 lakh.

Around 26% of sales were in the 45-75 lakh price bracket, 10% in the 75 lakh to 1 crore segment, and 19% in over 1 crore ticket size.

As much as 44 per cent of the total demand was for units with 2BHK configurations.

"Affordable housing segment has been a top performer since the last few years. The government is providing tax incentives and interest subsidy to boost demand in this segment," said Mani Rangarajan, group COO, Housing.com, Makaan.com and PropTiger.com.

In the Real Insight report for January-March 2021 quarter, PropTiger also found that housing sales across eight major cities declined only by 5% year-on-year at 66,176 units.

Compared with the Q4 of 2020, Mumbai, Pune and Bengaluru witnessed a fall in sales, while other five cities – Delhi-NCR, Kolkata, Chennai, Hyderabad, and Ahmedabad – have seen a growth in demand.

"After a huge setback during the April-June quarter of 2020, India's residential property market has been recovering month-on-month on pent up demand, festival sales and the rising importance of having homeownership," said Rangarajan.

However, the outbreak of the second wave of the covid-19 and lockdowns in many states may put a brake on the revival of the housing demand seen during the last few months.

On the supply side, PropTiger research showed that new supply rose by 49% year-on-year to 53,037 units across these eight cities between the Jan-Mar quarter. In line with demand trends, new supply continues to be concentrated in less than 45 lakh category, with 45% share from the overall pie.

The mid-segment ( 45–75 lakh price bracket) recorded a share of 27% of the total supply in the first quarter. More than 75 lakh price bracket accounted for 28% of the total supply.

According to the report, weighted average prices for newly launched projects in most of India's top cities remained muted in the past few quarters, with prices appreciating marginally in the range of 1–3% annually.

(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)

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