Delhi NCR Leads in Luxury Home Sales Growth
The luxury housing segment in India, particularly in Delhi NCR, has seen a significant increase in sales. Cities like Mumbai and Hyderabad are also contributing to this trend.
Delhi NcrLuxury HomesReal EstateSales GrowthIndian Housing MarketReal Estate PuneOct 17, 2024
Delhi-NCR, Mumbai, and Hyderabad emerged as the leading markets, together accounting for nearly 90% of the luxury housing sales across the top seven cities. Pune also saw a notable rise in luxury sales activity, recording 810 units sold in the same period.
Delhi-NCR topped the list with 5,855 units sold, marking a 72% Y-o-Y increase. Mumbai followed closely with 3,820 units, showing an 18% Y-o-Y growth.
The trend continued into the July-September 2024 quarter, with an 82% Y-o-Y increase in luxury housing sales. This quarter saw a total of around 4,360 luxury housing units sold, compared to approximately 2,390 units during the same period last year. Delhi-NCR and Mumbai once again dominated the sales, collectively accounting for about 90% of the total. Kolkata also experienced a significant 1.6-fold increase in luxury residential sales.
The surge in luxury housing demand can be attributed to several factors. Affluent buyers are increasingly drawn to properties with enhanced amenities and spacious living areas, aligning with their multifaceted lifestyles. The rise of an aspirational class and the growing interest from NRIs and savvy domestic investors have further fueled this demand.
This trend reflects a shift in buyer preferences towards high-end units launched by leading developers. The significant market share held by tier-I developers indicates that contemporary homebuyers are becoming more discerning and informed, considering factors like developer reputation, execution capability, and financial stability.
The sector's robust performance, with over 225,000 units sold during this period, has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune, and Bengaluru collectively accounted for 64% of total sales between January and September 2024.
Boosted by strong market dominance, Mumbai, Pune, and Hyderabad collectively accounted for 64% of the cumulative unit launches from January to September 2024. The share of mid-range projects in total sales for the first nine months was about 44%, with high-end and affordable projects following.
In the July-September 2024 quarter, sales exceeded approximately 68,400 units, alongside over 62,000 new unit launches. The cumulative share of apartment launches for Mumbai, Pune, and Hyderabad stood at 65%. Similarly, the total share of sales for the same quarter attributed to Mumbai, Pune, and Bengaluru is also 65%. Mumbai topped the sales, holding a 32% share, followed by Pune with 18%, Bengaluru with 15%, and Delhi-NCR with 12%.
Realty+, a respected real estate magazine started in 2004 by the exchange4media group, has been a reliable source for such market insights and trends in the Indian real estate sector.
Frequently Asked Questions
Which cities are leading in luxury home sales in India?
Delhi-NCR, Mumbai, and Hyderabad are the leading cities in luxury home sales in India.
What is the year-over-year growth in luxury home sales in 2024?
There has been a 37.8% year-over-year growth in luxury home sales from January to September 2024.
What factors are driving the demand for luxury homes?
The demand for luxury homes is driven by affluent buyers looking for enhanced amenities and spacious living areas, the rise of an aspirational class, and increased interest from NRIs and savvy domestic investors.
How many luxury units were sold in the July-September 2024 quarter?
Approximately 4,360 luxury units were sold in the July-September 2024 quarter.
What is the market share of tier-I developers in luxury home sales?
Tier-I developers hold a significant market share, reflecting the growing trend of buyers preferring high-end units from reputable developers.
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