February 14, 2024: The luxury segment housing in India (units priced Rs 4 crore and above) recorded a 75% year on year (YoY) growth in sales in 2023, highlighted recent findings of the India Market Monitor Q4 2023 report by real estate consulting firm CBRE South Asia. The report mentioned that a 45% YoY increase in unit launches was recorded in 2023. The percentage share of the luxury segment in the overall residential unit sales stood at 4% in 2023, nearly doubling its proportion of 2% in 2022.
Total luxury units sold
| City | Total unit sales (Luxury)
(Rs 4cr and above) |
|
| CY 2023 | CY 2022 | |
| Delhi -NCR | 5,530 | 1,860 |
| Mumbai | 4,190 | 3,390 |
| Pune | 450 | 190 |
| Bangalore | 265 | 265 |
| Kolkata | 310 | 300 |
| Hyderabad | 2,030 | 1,240 |
| Chennai | 160 | 150 |
| Total | 12,935 | 7,395 |
Delhi-NCR recorded the highest surge registering a 197% YoY increase, mentioned the report. This was followed by Pune, Hyderabad and Mumbai, registering an annual growth of about 144%, 64%, 24% and 4% respectively. New launches also kept pace with the sales, recording a 45% YoY growth in 2023.
According to the report, the overall residential sales across price categories exceeded 3, 22,000 units in 2023, registering a 9% YoY growth. Sustained momentum in demand also led developers to launch over 3,13,000 new housing units in 2023, a 6% YoY increase. Mid-end projects emerged as the leading category driving sales, recording a 45% share in total sales for 2023, followed by high-end and affordable projects. Pune, Mumbai and Bangalore cumulatively accounted for 61% of the total sales. Unit launches in Mumbai, Pune and Hyderabad, on the other hand, accounted for a 67% share during 2023.
The report further mentioned that during Oct-Dec ‘23, overall, 86,000 residential units were sold, and 90,000 units were launched, during the quarter on an overall basis. It highlighted that in Oct-Dec’23, the new unit launches recorded around 22% Y-o-Y increase and about 26% growth on a quarterly basis. Premium and luxury segments accounted for about 10% and 4% shares, respectively, during this period.
During Oct-Dec ‘23, Pune recorded the highest residential sales, with a 24% share, followed by Mumbai with about 21% share. Delhi-NCR and Hyderabad accounted for about 17% and 15% of the market, respectively. In terms of unit launches during the same period, Mumbai took the lead with a 27.5% share, closely followed by Hyderabad with 26.9%, and Pune with 19%. Mid-end segment accounted for around 36% share in unit launches, trailed by high-end segment at 33% and premium category at 14% during this period.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favourable market conditions driving healthy growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive. A 75% surge in luxury unit sales and a substantial 45% rise in launches underscore the sector’s vibrancy. The evolving market dynamics, especially in key cities like Delhi-NCR, Mumbai, Pune, Hyderabad and Bangalore, reflect a nuanced demand for high-end residences. The positive momentum witnessed over the past couple of years in new launches and sales is likely to continue in 2024”.
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With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
Email: anuradha.ramamirtham@housing.com
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