Luxury Housing Market Soars: ₹3 to 5 Crore Homes See 86% Surge in Sales
Sales of luxury apartments priced between ₹1 crore and above recorded around 30% Year-on-Year growth in 2024. Bengaluru, Mumbai, and Pune contributed to around 62% of the total sales.
Luxury HomesReal EstateJll IndiaBengaluruMumbaiReal Estate PuneJan 19, 2025
This growth is a testament to the increasing demand for premium housing in the country.
According to a report by JLL India, the overall market for apartments in the top seven cities saw a substantial increase, reaching a record-high volume of 302,867 units, up 11% from 2,71,818 units in the previous year.
Among the seven major cities—Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad, and Kolkata—Bengaluru, Mumbai, and Pune collectively contributed to 62% of the total sales.
The data includes only apartments, with rowhouses, villas, and plotted developments excluded from the analysis.
Key Findings from the Report
- ₹3 to 5 Crore Segment Sales in this premium segment surged 86% to 25,833 units from 13,881 units in the preceding year.- Above ₹5 Crore Segment Sales in the luxury segment shot up 80%, reaching 15,532 units from 8,641 units.- ₹1 Crore and Above Apartment sales in this category recorded almost 30% Year-on-Year growth, indicating a rise in home purchase affordability.- Below ₹50 Lakh Segment Sales of apartments in this range fell by 14% to 38,626 units from 45,160 units.- ₹50 Lakh to ₹1 Crore Segment Sales remained almost flat at 1,02,886 units, compared to 1,02,685 units in the previous year.
Drivers of the Surge in Luxury Housing
The continued expansion of the tech industry in Bengaluru and Pune, along with favorable weather conditions, played a significant role in boosting housing demand in these cities.
Mumbai’s housing sales have been driven by improved connectivity to suburban locations and sister cities, as well as redevelopment in core city areas.
Investors and end-users' confidence in the long-term prospects for the residential sector in these cities has positively impacted housing sales.
Price Trends
Residential prices in the top seven cities showed a steady increase in Q4 2024, with Year-on-Year price increases ranging from 5% to 20%.
Delhi NCR recorded the highest price increase of around 20%, followed by Bengaluru with a significant hike of approximately 14%.
Chennai, Hyderabad, and Kolkata also witnessed around 10% Y-o-Y growth in residential capital values.
Outlook for the Current Year
According to JLL, the housing market is expected to exhibit a strong performance in the current year, driven by rising urbanization levels, infrastructure developments, and an increasing demand for premium homes.
Changing consumer lifestyle preferences and higher disposable income levels are also contributing to the growth of the luxury segment.
Frequently Asked Questions
Which cities contributed the most to the surge in luxury home sales in 2024?
Bengaluru, Mumbai, and Pune collectively contributed to around 62% of the total sales in 2024.
What was the percentage increase in sales for homes priced between ₹3 and 5 crore?
Sales of homes in the ₹3 to 5 crore price range surged by 86% in 2024.
Why did the sales of homes priced below ₹50 lakh decline?
Sales of homes priced below ₹50 lakh fell by 14% due to fewer launches of affordable housing projects and rising prices.
What factors contributed to the growth in luxury home sales in Bengaluru and Pune?
The continued expansion of the tech industry and favorable weather conditions in Bengaluru and Pune played a critical role in boosting housing demand.
What is the outlook for the Indian housing market in the current year?
The housing market is expected to exhibit a strong performance amid rising urbanization levels, infrastructure developments, and an increasing demand for premium homes.
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