July 18, 2024: India’s luxury housing (units priced Rs 4 crore and above) segment recorded a 27% Y-o-Y increase in the Jan-Jun’24 period, according to a report by real estate consulting firm CBRE South Asia Pvt. Ltd., India titled, ‘India Market Monitor Q2 2024’.
The total sales of luxury units during the Jan-Jun’24 period stood at 8,500 compared to 6,700 units during the same period last year. Among the leading cities in absolute terms, Delhi-NCR, Mumbai and Hyderabad emerged as prominent markets, accounting for nearly 84% of the total luxury housing sales across the top seven cities. Further, Pune recorded a noteworthy increase in luxury sales activity, with demand growing nearly six-fold on an annual basis to touch 1,100 units.
In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of 3,300 units, a 13.8% YoY increase, followed by Mumbai at 2,500 units, recording 13.6% YoY growth. While the sales in Hyderabad stood at 1,300 units, a 44% YoY increase, Pune registered sales of 1,100 units, marking a 450% YoY increase during this period.
A similar trend prevailed during the Apr-June’24 quarter in the luxury housing segment across the top cities, registering a 40.1% YoY increase in sales. The quarter witnessed total sales of 4,410 luxury housing units compared to 3,150 units during the same quarter last year. Among the cities, Delhi-NCR, Mumbai and Hyderabad emerged as prominent markets during the quarter while Kolkata saw a notable two-fold increase in luxury residential sales.
The surge in demand for luxury housing has been primarily driven by a growing preference by affluent buyers seeking enhanced amenities and more spacious living areas that complement their multifaceted lifestyle. Additionally, the aspirational class has been on an upward trend, significantly driving luxury sales. Furthermore, the rise in NRI and astute investors in the Indian real estate market has considerably contributed to the heightened demand for luxury properties. This trend aligns with the noticeable shift in buyer preferences towards high-end units launched by leading developers, as evidenced by the substantial market share of tier-I developers. This shift is expected to persist, reflecting the evolving expectations of modern homebuyers who are now more discerning and well-informed about developer reputation, execution capability, and financial capability.
Overall residential sector (Jan-Jun’24)
Overall, the Indian housing market maintained its robust momentum during the Jan-Jun’24 period; a total of 1,56,000 units were sold and over 1,53,000 new units were launched across all categories. Mumbai, Pune and Bangalore emerged as the leading cities, accounting for a 63% share in total residential sales in India during Jan-Jun’24.
In terms of total unit launches, Mumbai, Pune and Hyderabad dominated the activity, capturing a significant cumulative share of 64% in Jan-Jun’24. This reflects a strong market dominance by these cities when it comes to introducing new residential projects.
During the Apr-Jun’24 quarter, sales of over 70,100 unit and over 69,600 new unit launches were recorded. Mumbai, Pune and Delhi-NCR jointly dominated the market for apartment launches, having a cumulative share of 62%. Correspondingly, Mumbai, Pune and Delhi-NCR accounted for the maximum share in sales in Apr-June ‘24. Mumbai led the sales, accounting for a 30% share, followed by Pune at 18% and Delhi-NCR at 15%.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable homebuying sentiments, festive season promotions, and significant land acquisitions by developers. These elements are expected to balance supply and demand dynamics and invigorate market activity.
The luxury housing segment, particularly for properties priced at Rs 4 crore and above, is set to thrive as buyers seek homes that align with their affluent lifestyles. Capital value growth in this segment is projected to stabilise, with an increasing focus on core project fundamentals such as quality, location, and access to essential infrastructure. Moreover, the ongoing mega infrastructure projects across the country, including transportation networks, highways, airports, and metro systems, are poised to bolster real estate growth. These developments are likely to unlock new markets, establish satellite cities, and stimulate growth in peripheral areas, making luxury housing an attractive investment”.
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