Luxury Housing Sales Surge by 38% in Major Indian Cities During Jan-Sep 2024
The luxury housing segment, including units priced at ₹4 crore and above, witnessed a 37.8% Y-o-Y growth in sales during the Jan-Sep 2024 period, driven by high demand and affluent buyer preferences.
Luxury HousingReal EstateSales GrowthMumbaiDelhincrReal Estate MumbaiOct 17, 2024
The total sales of luxury units during this period stood at around 12,625 units, up from around 9,160 units in the same period last year. This surge in demand is primarily attributed to a growing preference among affluent buyers for enhanced amenities and spacious living areas that align with their multifaceted lifestyles. Additionally, the increasing aspirational class and the rise in NRI and domestic investors have significantly contributed to the heightened demand for luxury residences.
Delhi-NCR, Mumbai, and Hyderabad emerged as the leading markets, accounting for nearly 90% of the total luxury housing sales across the top seven cities. Pune also recorded a notable increase in luxury sales activity, with 810 unit sales in the same period. In terms of luxury residential unit sales, Delhi-NCR topped the charts with around 5,855 units, marking a 72% Y-o-Y increase. Mumbai followed with around 3,820 units, recording an 18% Y-o-Y growth.
In the July-September 2024 quarter, the luxury housing segment across the top cities registered an 82% Y-o-Y increase in sales. The quarter saw a total of around 4,360 luxury housing units sold, compared to around 2,390 units during the same quarter last year. During this quarter, Delhi-NCR and Mumbai collectively accounted for about 90% of total sales. Notably, Kolkata witnessed a 1.6-fold increase in luxury residential sales.
This trend aligns with the shift in buyer preferences towards high-end units launched by leading developers, as evidenced by the substantial market share of tier-I developers. This shift is expected to persist, reflecting the evolving expectations of contemporary homebuyers who are now more discerning and informed regarding developer reputation, execution capability, and financial stability.
Overall, over 225,000 housing units were 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 Jan-Sep’24. 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.
'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. 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,' said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
'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,' he added.
Frequently Asked Questions
What is the primary reason for the surge in luxury housing sales?
The primary reasons for the surge in luxury housing sales include a growing preference among affluent buyers for enhanced amenities and spacious living areas, the increasing aspirational class, and the rise in NRI and domestic investors in the Indian real estate market.
Which cities recorded the highest luxury housing sales?
Delhi-NCR, Mumbai, and Hyderabad recorded the highest luxury housing sales, collectively accounting for nearly 90% of the total luxury housing sales across the top seven cities.
What was the Y-o-Y growth in luxury housing sales in Mumbai?
Mumbai recorded an 18% Y-o-Y growth in luxury housing sales during the January to September 2024 period.
What is the expected trend in the luxury housing market for the remainder of 2024?
The expected trend in the luxury housing market for the remainder of 2024 includes a continued increase in sales and new launches, with a shift towards high-end and premium segments. However, elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach.
How are developer reputations influencing buyer decisions in the luxury housing market?
Developer reputations, execution capabilities, and financial stability are increasingly influencing buyer decisions in the luxury housing market, as contemporary homebuyers are becoming more discerning and informed.
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