Luxury Home Sales Boom by 37.8% in Jan-Sep 2024: CBRE Report
Luxury property sales in India saw a significant surge of 37.8% YoY in the first nine months of 2024, with key cities like Delhi-NCR, Mumbai, and Hyderabad leading the growth. The report by CBRE South Asia highlights the increasing preference for high-end
Luxury Real EstateLuxury Property SalesIndian Real EstateHighend HousingLuxury Housing MarketReal Estate MumbaiOct 17, 2024
October 17, 2024 According to a report by CBRE South Asia, titled 'India Market Monitor Q3 2024 – Residential', the luxury housing market in India (units priced at Rs 4 crore and above) witnessed a robust 37.8% YoY increase in sales during the first nine months of 2024. The total sales of luxury units stood at approximately 12,625, up from around 9,160 units in the same period last year.
Key Markets Driving the Surge
Delhi-NCR, Mumbai, and Hyderabad emerged as the top markets, collectively accounting for nearly 90% of the total luxury housing sales across the top seven cities. Pune also recorded a notable increase in luxury sales activity, with 810 units sold in the same period.
- Delhi-NCR 5,855 units (72% YoY increase)- Mumbai 3,820 units (18% YoY increase)- Pune 810 units- Bangalore 35 units- Kolkata 380 units- Hyderabad 1,540 units- Chennai 185 units
Q3 2024 Performance
The trend continued during the Jul-Sep 2024 quarter, with an 82% YoY increase in sales. The quarter saw total sales of approximately 4,360 luxury housing units, up from around 2,390 units in the same quarter last year. Cities like Delhi-NCR and Mumbai dominated the market, accounting for about 90% of the total sales.
- NCR 2,590 units (535% YoY increase)- Mumbai 1,280 units (23% YoY increase)- Bangalore 50 units- Pune 12 units- Chennai 150 units- Hyderabad 200 units- Kolkata 80 units
Factors Driving the Growth
The surge in demand for luxury housing can be attributed to several factors
1. Affluent Buyers' Preferences There is a growing preference among affluent buyers for enhanced amenities and more spacious living areas that align with their multifaceted lifestyles.2. Aspirational Class The increasing aspirational class in India has significantly contributed to the demand for luxury properties.3. NRI and Astute Domestic Investors The rise in NRI and astute domestic investors has fueled the demand for luxury residences.4. Developer Reputation Contemporary homebuyers are more discerning and informed, placing a high value on developer reputation, execution capability, and financial stability.
Overall Residential Sector Performance
The residential sector maintained a strong performance, with over 2,25,000 units sold during the first nine months of 2024. The steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 2,15,000 units to the market. Mumbai, Pune, and Bangalore collectively represented 64% of total sales.
In the Jul-Sep 2024 quarter, sales exceeded approximately 68,400 units, accompanied by over 62,000 new unit launches. The cumulative share of apartment launches for Pune, Mumbai, and Hyderabad stood at 65%, and the total share of sales attributed to these cities is also 65%. Mumbai topped the sales, holding a 32% share, followed by Pune with 18%, Bangalore with 15%, and Delhi-NCR with 12%.
Industry Insights
Anshuman Magazine, chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, commented, 'India’s luxury housing market is witnessing significant growth, reflected in an increase in sales. Following strong performance in the first half of 2024 and the seasonal boost during festivals, we expect sales and new launches to exceed 3,00,000 units for the second consecutive year. However, elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach. Property prices will likely be influenced by unsold inventory, project quality, and infrastructure access. We also foresee heightened demand in the high-end and premium segments, with traditional mid-range markets like Noida, Bangalore, Pune, and Chennai increasingly gravitating towards luxury developments. As the market shifts from bungalows to modern apartments and penthouses, the premiumisation of amenities will be a key differentiator in luxury projects.'
Residential Sector Outlook
The report forecasts that both sales and new launches of residential units will remain elevated, given the strong performance in H1 2024 and the sector’s tendency to peak during the festive season. However, high capital values and an uncertain global economic scenario may lead homebuyers to adopt a wait-and-watch approach. The report predicts strong demand for high-end/premium categories, with traditional mid-end segment-dominated markets like Noida, Bangalore, Pune, and Chennai continuing to gravitate towards high-end developments.
Frequently Asked Questions
What is the percentage increase in luxury home sales in India from Jan-Sep 2023 to Jan-Sep 2024?
The luxury home sales in India increased by 37.8% from Jan-Sep 2023 to Jan-Sep 2024.
Which cities are the top markets for luxury housing sales in India?
The top markets for luxury housing sales in India are Delhi-NCR, Mumbai, and Hyderabad.
What factors are driving the growth in luxury home sales in India?
The growth in luxury home sales is driven by a growing preference for enhanced amenities and spacious living areas among affluent buyers, an increasing aspirational class, the rise of NRI and astute domestic investors, and the increasing importance of developer reputation and execution capability.
How many luxury units were sold in the Jul-Sep 2024 quarter?
Approximately 4,360 luxury units were sold in the Jul-Sep 2024 quarter.
What is the forecast for the residential sector in the coming months?
The residential sector is expected to maintain elevated sales and new launches, although high capital values and an uncertain global economic scenario may lead homebuyers to adopt a cautious approach.
Related News Articles
NCLT Orders Insolvency Proceedings Against Supertech Realtors' Supernova Project
Supertech Realtors, the developer of the prestigious Supernova project, has been ordered to undergo insolvency proceedings by the National Company Law Tribunal (NCLT) due to a default of Rs 168.04 crore.
The Financial Odyssey of Steve Perry: Net Worth, Real Estate, and Music Royalties
From luxury penthouses to waterfront homes, Steve Perry's real estate portfolio is worth millions. But how did the former Journey frontman amass a net worth of $80 million?
Luxury Living: Marico MD Saugata Gupta Snaps Up Rs 36.4 Crore Apartment in Mumbai's Worli
Saugata Gupta, MD of Marico, buys 4372 sq ft apartment in Worli for Rs 36.4 crore, highlighting Mumbai's strong property market performance.
Celebrating 20 Years of Mapic India: Innovation and Sustainable Growth in Retail and Real Estate
The event brought together over 3,000 attendees from the worlds of real estate and retail, showcasing more than 300 exhibitors and addressing key topics such as artificial intelligence, sustainable growth, and innovation.
Pune: Manish Anand Files Independent Candidature for Chhatrapati Shivajinagar Assembly
Pune: Manish Anand has officially filed his nomination as an independent candidate for the Chhatrapati Shivajinagar Assembly Constituency. The elections are expected to be highly competitive, with several prominent political figures vying for the seat.
From Humble Beginnings: How Jewar Transformed into a Thriving Real Estate Hub
Explore the journey of Jewar, a small town in Uttar Pradesh, as it transitions into a booming real estate market. Discover the factors driving this transformation and the potential gains for investors in the area.