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The first quarter of 2024 saw strong progress in India’s residential real estate market, driven by excessive demand. The high-end and luxurious segments made significant contributions, whereas the mid-segment led in launches. Established developers are fueling the market, with a shift towards high quality and belief over price. Affordability crisis hit millions of Americans and stopped potential homebuyers in their tracks. If mortgage charges have been to move larger in 2024, that would have an immediate chilling effect on homebuyers and we would see house prices correct down very quickly, which would cause the housing market to come to a standstill.
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Housing demand is typically driven by housing market circumstances in addition to adjustments in the financial system, job market and household income. The lower housing affordability is, because of larger mortgage charges and/or house costs, homebuyers have …