Luxury Home Sales Surge in India: A Closer Look at Q3 2024
India's luxury real estate market saw a significant 37.8% YoY increase in sales during the Jan-Sep 2024 period, with Delhi-NCR, Mumbai, and Hyderabad leading the way. The trend is driven by a growing preference for high-end amenities and spacious living a
Luxury Real EstateMarket TrendsResidential SalesProperty MarketHighend ProjectsReal Estate PuneOct 17, 2024
Key Market PerformersDelhi-NCR, Mumbai, and Hyderabad were the leading markets, accounting for nearly 90% of the total luxury housing sales across the top seven cities. Pune, in particular, recorded a significant increase in luxury sales activity, with 810 unit sales in the same period. Delhi-NCR topped the charts with sales of approximately 5,855 units, marking a 72% YoY increase. Mumbai followed with around 3,820 units, showing an 18% YoY growth.
Quarterly TrendsA similar trend was observed during the Jul-Sep 2024 quarter, with luxury housing sales registering an 82% YoY increase. The quarter saw the sale of approximately 4,360 luxury housing units, up from about 2,390 units during the same quarter last year. Cities like Delhi-NCR and Mumbai continued to dominate, collectively accounting for about 90% of total sales. Kolkata also saw a notable 1.6-fold increase in luxury residential sales.
Driving FactorsThe surge in luxury housing demand can be attributed to several factors. Affluent buyers are increasingly seeking enhanced amenities and more spacious living areas to match their multifaceted lifestyles. The growing aspirational class and the rise of NRI and astute domestic investors in the Indian real estate market have also played a significant role in fueling this demand. Furthermore, leading developers have shifted their focus towards high-end units, aligning with the evolving expectations of contemporary homebuyers who are more discerning and informed about developer reputation, execution capability, and financial stability.
Overall Residential Sector PerformanceThe residential sector as a whole maintained strong performance, with over 225,000 units sold during the first nine months of 2024. This steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune, and Bangalore collectively represented 64% of total sales between January and 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.
Regional BreakdownIn 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%. Similarly, the total share of sales for the same quarter attributed to Pune, Mumbai, and Bangalore was also 65%. Mumbai topped the sales, holding a 32% share, followed by Pune with 18%, Bangalore with 15%, and Delhi-NCR with 12%.
Future OutlookAccording to Anshuman Magazine, chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa,
Frequently Asked Questions
What is the definition of luxury housing in the Indian real estate market?
In the Indian real estate market, luxury housing refers to properties priced at Rs 4 crore and above. These units typically offer enhanced amenities and more spacious living areas, catering to the affluent class.
Which cities saw the most significant increase in luxury housing sales?
Delhi-NCR, Mumbai, and Hyderabad saw the most significant increases in luxury housing sales. Delhi-NCR alone recorded a 72% YoY increase in sales, followed by Mumbai with an 18% YoY growth.
What factors are driving the surge in luxury housing demand?
The surge in luxury housing demand is driven by a growing preference for high-end amenities and spacious living areas among affluent buyers. The rising aspirational class, the influence of NRI and domestic investors, and the shift in developer focus towards high-end units are also significant factors.
What is the overall performance of the residential sector in India during Jan-Sep 2024?
The residential sector in India maintained strong performance, with over 225,000 units sold during the first nine months of 2024. This steady demand encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market.
What is the future outlook for the luxury housing market in India?
The future outlook for the luxury housing market in India is positive. Despite high capital values and an uncertain global economic scenario, the report forecasts strong demand in the high-end and premium categories. The market is expected to exceed 300,000 units for the second consecutive year.
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