Luxury Housing Market in India Surges 37.8% in 2024: A Closer Look
India's luxury housing segment, priced at ₹4 crore and above, has witnessed a significant 37.8% year-on-year growth in sales. Cities like Delhi-NCR, Mumbai, and Hyderabad dominate the luxury housing market, accounting for nearly 90% of the sales.
Luxury HousingReal EstateDelhincrMumbaiResidential UnitsReal Estate MumbaiOct 18, 2024
Delhi-NCR has emerged as the frontrunner, with sales of around 5,855 units, marking a 72% year-on-year increase. Mumbai follows closely with 3,820 units, recording an 18% growth. Hyderabad also showed strong performance, contributing significantly to the overall market.
The September quarter further underscored this trend, with an 82% year-on-year increase in sales. During this period, a total of 4,360 luxury housing units were sold, compared to 2,390 units in the same quarter last year. Delhi-NCR and Mumbai dominated the sales, collectively accounting for about 90% of the total sales. Notably, Kolkata saw a 1.6-fold increase in luxury residential sales, reflecting a growing appetite for premium properties across different regions.
The surge in demand for luxury housing can be attributed to several factors. Affluent buyers are increasingly preferring units with enhanced amenities and more spacious living areas that align with their multifaceted lifestyles. The rising aspirational class has also played a significant role in boosting the demand for luxury properties. CBRE highlights the significant contribution of NRI and domestic investors, who have fuelled the heightened demand for luxury residences.
This trend is further supported by the shift in buyer preferences towards high-end units launched by leading developers. Tier-I developers have seen a substantial market share, indicating that contemporary homebuyers are more discerning and informed about developer reputation, execution capability, and financial stability. This trend is expected to continue, reflecting the evolving expectations of the market.
Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, comments, 'India's luxury housing market is witnessing significant growth, reflected in an increase in sales. Following the 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.' However, he also notes that elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach, with property prices likely influenced by unsold inventory, project quality, and infrastructure access.
Looking ahead, CBRE anticipates heightened demand in the high-end and premium segments. Traditional mid-range markets like Noida, Bengaluru, Pune, and Chennai are increasingly gravitating towards luxury developments. The market is expected to shift from bungalows to modern apartments and penthouses, with the premiumisation of amenities serving as a key differentiator in luxury projects.
Frequently Asked Questions
What is the price range for luxury housing units in India?
Luxury housing units in India are defined as properties priced at ₹4 crore and above.
Which cities have seen the most significant growth in luxury housing sales?
Delhi-NCR, Mumbai, and Hyderabad have seen the most significant growth in luxury housing sales, collectively accounting for nearly 90% of the total sales.
What factors are driving the demand for luxury housing?
Affluent buyers' preference for enhanced amenities and more spacious living areas, the rising aspirational class, and increased investment from NRIs and domestic investors are the main factors driving the demand for luxury housing.
How has the luxury housing market performed in the September quarter of 2024?
The September quarter saw an 82% year-on-year increase in luxury housing sales, with a total of 4,360 units sold, compared to 2,390 units in the same quarter last year.
What is the outlook for the luxury housing market in the coming years?
The outlook is positive, with expectations of heightened demand in the high-end and premium segments. Traditional mid-range markets are also expected to gravitate towards luxury developments, driven by the premiumisation of amenities.
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