Luxury homes are outselling affordable houses for the first time ever. Here's why

Luxury home sales have surpassed affordable houses for the first time ever, Knight Frank India Senior ED Gulam Zia told CNBC-TV18 while highlighting a concerning trend in the sector.

The rising home loan rates have begun to take a toll on the affordability of homes across the country. The affordable housing sector, which had been a crucial driver of the real estate market's growth, is now facing considerable challenges. Before the COVID-19 pandemic, this segment used to contribute to over 50% of the overall sales in the Indian real estate market.

He said, “...the increasing home loan interest rates have had a severe impact on the lower end of the market, while mid to upper end is not so much dependent on the home loans alone.”