Delhi-NCR and Mumbai Drive 37.8% Surge in India's Luxury Housing Sales in 2024
India's luxury housing market, defined as properties priced at INR 4 crore and above, has witnessed a remarkable 37.8% year-on-year growth from January to September 2024.
Luxury HousingReal EstateDelhincrMumbaiMarket GrowthReal Estate MumbaiOct 23, 2024
In terms of volume, Delhi-NCR led the market with sales of 5,855 units, reflecting a substantial 72% year-on-year increase. Mumbai followed closely with 3,820 units sold, which represents an 18% year-on-year growth. A similar trend was observed in the luxury housing sector during the July to September 2024 quarter, with an impressive 82% year-on-year increase in sales. Approximately 4,360 luxury housing units were sold during this quarter, compared to around 2,390 units in the same quarter last year. Cities like Delhi-NCR and Mumbai dominated the sales landscape, together accounting for about 90% of total transactions. Additionally, Kolkata experienced a remarkable 1.6-fold increase in luxury residential sales.
The rising demand for luxury housing can largely be attributed to affluent buyers' growing preference for enhanced amenities and more spacious living environments that align with their diverse lifestyles. The expanding aspirational class has also played a significant role in boosting demand for luxury properties. The increasing presence of Non-Resident Indians (NRIs) and savvy domestic investors in the Indian real estate market has further intensified the demand for luxury residences.
This trend reflects a notable shift in buyer preferences towards high-end units launched by leading developers, as demonstrated by the significant market share held by tier-I developers. This shift is expected to continue, mirroring the evolving expectations of modern homebuyers who are now more selective and informed about developers' reputations, execution capabilities, and financial stability.
The sector has also maintained robust performance in terms of absolute figures, with over 225,000 units sold during this period. Steady demand has prompted developers to launch new projects and additional phases, contributing approximately 215,000 units to the market. Mumbai, Pune, and Bengaluru together accounted for 64% of total sales between January and September 2024.
Driven by a strong market presence, Mumbai, Pune, and Hyderabad together accounted for 64% of the total unit launches from January to September 2024. Mid-range projects represented about 44% of total sales during the first nine months of 2024, followed by high-end and affordable projects. In the July-September 2024 quarter, sales surpassed approximately 68,400 units, accompanied by over 62,000 new unit launches. The combined share of apartment launches in Mumbai, Pune, and Hyderabad reached 65%. Similarly, these three cities also comprised 65% of total sales for the same quarter. Mumbai led the sales with a 32% share, followed by Pune at 18%, Bengaluru at 15%, and Delhi-NCR at 12%.
The ongoing boom in India's luxury housing market underscores a shift in buyer preferences towards high-end units from reputable developers. With strong sales performance and continued demand, the market is set for sustained growth, positioning key cities like Mumbai, Pune, and Hyderabad as leaders in luxury real estate.
Frequently Asked Questions
What criteria define luxury housing in India?
Luxury housing in India is defined as properties priced at INR 4 crore and above, which typically include enhanced amenities and more spacious living environments.
Which cities are the key markets for luxury housing in India?
The key markets for luxury housing in India are Delhi-NCR, Mumbai, and Hyderabad, which collectively contribute nearly 90% of the overall luxury housing sales.
What has been the year-on-year growth in luxury housing sales from January to September 2024?
The luxury housing market in India has witnessed a remarkable 37.8% year-on-year growth from January to September 2024.
What factors are driving the demand for luxury housing in India?
The demand for luxury housing in India is driven by affluent buyers' preferences for enhanced amenities, the expanding aspirational class, and the increasing presence of NRIs and savvy domestic investors.
How has the performance of the luxury housing sector been in terms of unit launches and sales?
The sector has maintained robust performance, with over 225,000 units sold and approximately 215,000 units launched from January to September 2024.
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