Luxury Home Sales Soar by 37.8% from January to September 2024
The luxury real estate market in India is witnessing a significant surge, especially for properties valued at Rs 4 crore and above. Key cities like Delhi-NCR, Mumbai, and Hyderabad are leading the trend, driven by an expanding aspirational demographic and
Luxury Real EstateHighend PropertiesReal Estate MarketProperty SalesResidential PropertiesReal Estate MumbaiOct 17, 2024
During this period, Delhi-NCR emerged as the top performer in luxury sales, with 5,855 units sold, representing a substantial 72% year-on-year increase. Following closely behind, Mumbai recorded sales of 3,820 units, marking an 18% year-on-year growth. Additionally, Pune experienced a significant surge in luxury sales, with 810 units sold, indicating a noteworthy increase in sales activity within the region.
The heightened interest in upscale residential properties can be largely attributed to the escalating inclination of wealthy purchasers towards superior facilities and larger living spaces that align with their diverse lifestyles. Furthermore, the expanding aspirational demographic has notably bolstered the surge in demand for luxurious real estate. The growing number of non-resident Indian investors and savvy domestic investors has also played a significant role in driving this trend.
“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 300,000 units for the second consecutive year,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. 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, Bengaluru, Pune, and Chennai increasingly gravitating towards luxury developments. As the market shifts from bungalows to modern apartments and penthouses, the premiumization of amenities will be a key differentiator in luxury projects,” added Magazine.
The July-September quarter of 2024 saw a continuation of the upward trend, with major cities experiencing a substantial 82% year-on-year surge in luxury housing sales. The total number of luxury housing units sold during this quarter amounted to 4,360, marking a significant increase from the 2,390 units sold during the corresponding quarter in the previous year. Notably, cities such as Delhi-NCR and Mumbai played a dominant role in driving the sales of luxury housing during this quarter, collectively accounting for about 90% of total sales. Moreover, Kolkata saw a 1.6-fold increase in luxury residential sales. The current trend is in line with the change in what buyers prefer, which is leaning towards high-end properties introduced by top developers and market dominance. This change is expected to continue, demonstrating the changing demands of modern homebuyers who are becoming increasingly selective and knowledgeable about developer credibility, ability to execute projects, and financial strength.
Overall, the residential sector maintained a 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. The share of mid-range projects in total sales for the first nine months of 2024 was about 44%, followed by high-end and affordable projects.
“Ready-to-move-in luxury properties are completely sold out, highlighting the strong appetite among buyers for premium, hassle-free living options. High-net-worth individuals are increasingly seeking exclusive homes that offer not just comfort, but a statement of lifestyle. For brokers and developers, this momentum presents significant growth prospects, as the demand for high-end residences shows no signs of slowing down,” said Vijay Chugani, founder of ZenXChugs, a luxury realtor based out of Bengaluru.
In the July-September quarter of 2024, 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%.
Given the strong performance in H1 2024 and the sector's tendency to peak during the festive season, we forecast both sales and new launches of residential units to remain elevated. However, high capital values amidst an uncertain global economic scenario may lead homebuyers to take a wait-and-watch approach to purchasing decisions. In addition, as erstwhile price points realign, we expect the high-end or premium categories—Rs 1 to 2 crore and Rs 2 to 4 crore, respectively—to witness strong demand. Additionally, the traditional mid-end segment-dominated markets such as Noida, Bengaluru, Pune, and Chennai are expected to continue gravitating increasingly towards high-end developments.
Frequently Asked Questions
What is the percentage increase in luxury home sales from January to September 2024?
Luxury home sales increased by approximately 37.8% year-on-year from January to September 2024.
Which cities are leading the luxury housing sales in India?
Delhi-NCR, Mumbai, and Hyderabad are leading the luxury housing sales in India, collectively representing nearly 90% of the total sales.
What factors are driving the surge in luxury real estate demand?
The surge in luxury real estate demand is driven by the expanding aspirational demographic, an increasing number of NRI and domestic investors, and the preference for superior facilities and larger living spaces among wealthy purchasers.
How many luxury units were sold in the July-September quarter of 2024?
4,360 luxury units were sold in the July-September quarter of 2024.
What are the expected trends in the luxury real estate market for the rest of 2024?
The luxury real estate market is expected to see elevated sales and new launches, with a strong demand for high-end or premium categories and a shift from bungalows to modern apartments and penthouses.
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