Delhi NCR Leads the Way in Luxury Real Estate Sales in India
The luxury housing market in India has seen significant growth, with Delhi NCR, Mumbai, and Hyderabad accounting for nearly 90% of total sales. The rise in NRI and domestic investors, along with a growing preference for high-end amenities, has driven this
Delhi NcrLuxury Real EstateCbre South AsiaIndian Real EstateHighend HousingReal Estate MumbaiOct 17, 2024
In terms of the number of luxury residential units sold, Delhi-NCR topped the list with 5,855 units, representing a 72% Y-o-Y increase. Mumbai followed with 3,820 units, marking an 18% Y-o-Y growth.
The Jul-Sep’24 quarter also showed a similar trend, with an 82% Y-o-Y increase in luxury housing sales. The quarter saw a total of approximately 4,360 luxury housing units sold, compared to about 2,390 units in the same quarter last year. Delhi-NCR and Mumbai dominated the sales, collectively accounting for around 90% of the total sales. Notably, Kolkata experienced a 1.6-fold increase in luxury residential sales.
The surge in demand for luxury housing can be attributed to several factors. Affluent buyers are increasingly seeking enhanced amenities and more spacious living areas that align with their multifaceted lifestyles. Additionally, the growing aspirational class has significantly contributed to the increased demand for luxury properties. The rise in NRI and astute domestic investors in the Indian real estate market has also played a crucial role in fueling the demand for luxury residences.
This trend aligns with a shift in buyer preferences towards high-end units launched by leading developers. Tier-I developers have gained a substantial market share, reflecting the evolving expectations of contemporary homebuyers who are now more discerning and informed about developer reputation, execution capability, and financial stability.
The sector has maintained strong performance in absolute numbers, with over 225,000 units sold during this period. The steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune, and Bengaluru collectively represented 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. Mid-range projects accounted for about 44% of total sales during the first nine months of 2024, followed by high-end and affordable projects.
In the Jul-Sep’24 quarter, sales exceeded approximately 68,400 units, accompanied by 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%.
Frequently Asked Questions
What is the main reason for the surge in luxury housing sales in India?
The main reasons include a growing preference for enhanced amenities and more spacious living areas among affluent buyers, the increasing aspirational class, and the rise in NRI and domestic investors.
Which cities lead in luxury housing sales?
Delhi-NCR, Mumbai, and Hyderabad are the leading cities in luxury housing sales, accounting for nearly 90% of total sales across the top seven cities.
How much did luxury housing sales increase in the Jan-Sep 2024 period?
Luxury housing sales increased by approximately 37.8% year-over-year (Y-o-Y) in the Jan-Sep 2024 period.
What role do tier-I developers play in the luxury housing market?
Tier-I developers have gained substantial market share, reflecting the evolving expectations of contemporary homebuyers who are more discerning and informed about developer reputation, execution capability, and financial stability.
What is the cumulative share of apartment launches for Mumbai, Pune, and Hyderabad?
The cumulative share of apartment launches for Mumbai, Pune, and Hyderabad stood at 65%.
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