NEW DELHI (Reuters) – India’s luxury home market has surged to record levels as prices have surged in recent years, with the number of new listings jumping by nearly 200 percent, the country’s real estate regulator said on Tuesday.
In 2016, India accounted for around 60 percent of the market, the National Sample Survey Office (NSSO) said, but that figure has now risen to more than 60 percent, and is now expected to reach 70 percent in the next few years.
The rise has also been driven by a surge in demand for luxury homes.
While the average price of a house in India has increased by around 50 percent in real terms over the past two years, demand has also surged, with buyers seeking to stretch their wealth and buy homes with more amenities, the NSSO said.
“While the trend is certainly encouraging, there is still a lot of work to be done to address this demand,” the regulator said in a statement.
The surge in luxury home prices has sparked protests by wealthy and powerful residents in India, who have been trying to curtail the increase in the prices of their properties.
In 2017, the state of Madhya Pradesh led a wave of protests that resulted in the cancellation of planned new construction in many areas.
In the past year, a number of protests and lawsuits have been filed against property developers in India over the increase of luxury homes in their towns and cities, including the high cost of living, low quality of life and over-crowding.
Some activists have also accused wealthy individuals of hoarding property to prevent it from going up in value, and a group of activists has been demanding that the government allow more affordable homes to be built in the country.(Reporting by Prashant Bhanu Mehta; Editing by Robert Birsel)