Indian Luxury Housing Market Sees Robust Growth with 27% Increase in Sales
The luxury housing segment in India has witnessed a significant surge in sales, with a 27% year-on-year increase in sales across top seven cities between January and June 2024.
Luxury HousingIndian Real EstateCbre South AsiaDelhi NcrMumbaiHyderabadPuneReal Estate PuneJul 18, 2024
Delhi-NCR, Mumbai, and Hyderabad emerged as the leading markets, accounting for nearly 84% of the total luxury housing sales across the top seven cities. Pune recorded a noteworthy increase in luxury sales activity, with demand growing nearly six-fold on an annual basis to touch around 1,100 units.
The report highlighted that Delhi-NCR topped the list with sales of around 3,300 units, a 13.8% year-on-year increase, followed by Mumbai at around 2,500 units, recording 13.6% year-on-year growth. Hyderabad saw a 44% year-on-year increase in sales, with around 1,300 units sold, while Pune registered sales of 1,100 units, marking a 450% year-on-year increase during this period.
The surge in demand for luxury housing has been driven primarily by a growing preference among affluent buyers seeking enhanced amenities and more spacious living areas that complement their multifaceted lifestyle. 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.
The report added that the Indian housing market maintained its robust momentum during the Jan-Jun'24 period, with a total of 156,000 units sold, and over 153,000 new units launched across all categories. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for an impressive 63% share in total residential sales in India during Jan-Jun'24.
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 home-buying sentiments, festive season promotions, and significant land acquisitions by developers. These elements are expected to balance supply and demand dynamics and invigorate market activity.'
Information
CBRE South Asia is a leading real estate consulting firm that provides comprehensive services in investment, valuation, and property management. The firm has a strong presence in India and is known for its expertise in the real estate sector.
Frequently Asked Questions
What is the year-on-year increase in luxury housing sales in India?
27% increase in sales across top seven cities between January and June 2024.
Which cities accounted for nearly 84% of the total luxury housing sales?
Delhi-NCR, Mumbai, and Hyderabad.
What is the primary driver of the surge in demand for luxury housing?
Growing preference among affluent buyers seeking enhanced amenities and more spacious living areas.
What is the projected growth in the luxury housing segment?
Capital value growth in this segment is projected to stabilise, with an increasing focus on core project fundamentals.
Which cities led the sales in the April-June '24 quarter?
Mumbai, Pune, and Delhi-NCR accounted for the maximum share in sales.
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