Luxury Homes Lead the Way: Rs 1 Cr+ Segment Dominates Residential Sales
The high-end segment of Indian residential real estate, with ticket sizes of INR 10+ million, has grown significantly to 46% of all sales in Q3 2024, driven by demand for larger living spaces and upgraded lifestyles.
Luxury HomesResidential SalesIndian Real EstateKnight Frank IndiaProperty ConsultingReal EstateOct 03, 2024
Sales in the premium segment have grown by 41% year-over-year (YoY) in Q3 2024, accounting for 46% of total residential sales across India. The need for larger living spaces and an upgraded lifestyle, which was sparked during the pandemic, continues to fuel demand in this segment.
While home prices have increased across cities, Bengaluru has seen the sharpest rise at 10% year-on-year. Mumbai witnessed the highest sales volume and YoY growth, with 24,222 units sold in Q3 2024, marking a 9% increase from the preceding year. The residential sales in Bengaluru (14,604 units) and Pune (13,200 units) have surpassed sales of NCR’s residential market in Q3 2024. NCR is the only residential market to record a de-growth of (7%) in sales. Key Findings
The premium segment has seen a significant increase in demand, surpassing the mid-segment and budget segment. Residential prices have appreciated across all eight leading markets, with Bengaluru witnessing the sharpest rise at 10% YoY. Mumbai, NCR, and Bengaluru together account for 80% of total sales in Q3 2024.
Total residential sales increased by 5% YoY to 87,108 units in Q3 2024. Homes priced over Rs 10 million accounted for 46% of total sales, growing by 41% YoY.
Factors Driving Growth Low interest rates have made homeownership more affordable. A positive economic outlook has boosted consumer confidence. The pandemic has accelerated the trend towards larger living spaces. Developers are focusing on building premium projects to cater to the growing demand for high-end properties.
Knight Frank India is a leading property consulting group that provides expert advice on residential and commercial real estate. With its extensive network and deep understanding of the market, Knight Frank India provides insightful research and analysis on the Indian real estate market.
Frequently Asked Questions
What is the growth rate of the high-end segment in Indian residential real estate?
The high-end segment, with ticket sizes of INR 10+ million, has grown significantly to 46% of all sales in Q3 2024, as compared to 35% a year ago.
What is driving the demand for luxury homes in India?
The demand for larger living spaces and upgraded lifestyles, sparked during the pandemic, continues to fuel growth in the luxury home segment.
Which city has seen the sharpest rise in home prices?
Bengaluru has seen the sharpest rise in home prices, with a 10% year-on-year increase.
What is the share of sales in the mid-size segment?
The mid-size segment, with ticket sizes between Rs 5-10 million, accounted for 30% of total sales in Q3 2024.
What is the outlook for the Indian real estate market?
Given the steady economic outlook and the likelihood of rate cuts, we believe that demand has enough tailwinds to sustain current momentum as the market approaches the end of the year.
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