January 15th, 2025: According to the latest report by real estate consulting firm CBRE South Asia Pvt. Ltd., India’s luxury housing segment (units priced at Rs 4 crore and above) recorded around 53% YoY sales growth in CY 2024 across top seven cities. The report titled ‘India Market Monitor Q4 2024 – Residential’, stated that the segment also recorded significant unit launches, registering around 52% YoY growth during the year.
Delhi-NCR leads the total luxury unit sales in 2024
In CY 2024, total luxury housing sales reached around 19,700 units, recording around 53% YoY growth. Delhi-NCR, Mumbai and Hyderabad emerged as the key markets, collectively contributing over 90% of the luxury housing unit sales across the top seven cities.
Delhi-NCR led the market, recording a substantial 90% YoY growth, followed by Mumbai, recording a 32% YoY increase. The total luxury unit sales were 10,500 units in Delhi-NCR, while it was 5,500 units in Mumbai. Moreover, Pune witnessed significant demand in the luxury housing segment, recording around 825 units sales in 2024.
The number of new launches in 2024 in the luxury segment reached around 24,180, recording a 52% YoY increase. In line with the trajectory of luxury housing unit sales, Delhi-NCR led the new launches with 12,215 units compared to 6,100 units in CY 2023. This was followed by Mumbai with 6,650 units and Hyderabad with 4,220 units compared to 5,700 units and 3,200 units in CY 2023, respectively. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023.
The report highlighted that the rising demand for luxury housing is largely driven by a growing number of affluent buyers seeking spacious homes with premium amenities that cater to their multifaceted lifestyles. Furthermore, this demand has been bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.
A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast.
India’s overall residential market performance in CY 2024
According to the CBRE report, India’s residential real estate market witnessed positive activity throughout CY 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This momentum pushed annual sales to surpass around 300,000 housing units for the second year in a row. To meet the rising demand, developers launched over 280,000 new residential units during the year. Mid-segment projects dominated sales with a 40% share, followed by high-end and affordable segments. Together, Mumbai, Pune and Bangalore accounted for 64% of the total sales in 2024, underscoring their significance in the residential market.
During the Oct-Dec’24 quarter, around 75,300 sales of housing units were recorded, while the number of new launches during the same period stood at about 67,800 units. In 2024, Mumbai, Pune and Hyderabad collectively accounted for nearly 63% of the total unit launches. During Oct-Dec’24, Mumbai, Pune and Delhi-NCR cumulatively contributed about 66% to the overall sales. Additionally, unit launches in Oct-Dec’24 saw Mumbai, Pune, and Bengaluru capturing a combined share of around 60%.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, ” The residential real estate market is driven by strong fundamentals underpinned by robust end-user demand. We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market. However, with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence.”
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