Luxury Housing Segments Witness 80% Growth in 2024: Over 15,532 Flats Priced Above Rs 5 Crore Sold
In a remarkable market shift, apartments priced above Rs 5 crore saw an 80% surge in sales in 2024, with a total of 15,532 such luxury homes sold across India's top cities, according to a report by JLL.
Luxury HousingReal Estate GrowthHighnetworth IndividualsResidential SupplyJll ReportReal Estate NewsJan 20, 2025
This surge is indicative of a growing trend among high-net-worth individuals (HNWIs) and a shift in buyer preferences towards larger, tech-enabled, and future-ready homes.
According to Dr.
Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, the premium segment (Rs 3-5 crore) also saw an exceptional growth of 86%, contributing to 9% of total sales in 2024, up from 5% in 2023.
The luxury segment (Rs 5 crore and above) accounted for 5% of total sales in 2024, compared to 3% in 2023.
Breaking Down the Numbers- Rs 3-5 Crore Segment Sales grew by 86%, contributing to 9% of the total sales in 2024, compared to just 5% in 2023.- Above Rs 5 Crore Segment The luxury market saw an 80% growth, with 5% of total sales in 2024, compared to 3% in 2023.
Record-High Residential SupplyApproximately 302,000 housing units were launched in 2024, marking the highest ever annual residential supply across the top seven cities in India.
The yearly launches saw a marginal 3% increase year-on-year (Y-o-Y), with Mumbai, Bengaluru, and Hyderabad leading the pack, accounting for 60% of the total launches.
The tech cities of Bengaluru, Chennai, Hyderabad, and Pune, driven by their expanding commercial office sectors, collectively contributed around 60% to the 2024 launches.
Post-Pandemic Market DynamicsDriven by this record-high sales, the average annual sales during the post-pandemic years (2022-2024) have surpassed the average annual sales of the last decade (2010-2019) by around 63%.
The fourth quarter of 2024 (Q4 2024) saw the sale of 72,930 units, a marginal dip of around 3% compared to the same period last year.
Bengaluru, Mumbai, and Pune accounted for around 64% of the quarterly sales, with a sustained growth in demand for high-value homes (Rs 3 crore and above) contributing to 14% of the quarterly sales volume.
Developer Focus on Premium and Luxury Segments“Residential supply during 2024 kept pace with sales, surpassing the 300,000-unit mark.
A steady rise in residential supply during the post-pandemic years shows around 47% growth in average annual launches when compared to the average launches during 2010-2019.
Driven by rising demand for high-end housing, developers have been focusing on the launch of premium and luxury segment projects, as evident from a 101% and 68% Y-o-Y surge in their launches, respectively,” noted Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head - Residential Services, India, JLL.
Regional TrendsDelhi NCR recorded the highest Y-o-Y growth in annual launches, while Bengaluru witnessed a historical high in launches.
Q4 2024 continued to show residential price growth in the top seven cities of India, with Y-o-Y price increases ranging from around 5% to 20%.
Delhi NCR led with the highest price increase of around 20%, followed by Bengaluru with a significant hike of approximately 14%.
Chennai, Hyderabad, and Kolkata also saw around 10% Y-o-Y growth in residential capital values.
Future OutlookAmid the soaring housing demand and quality launches, capital values are expected to continue their upward trajectory, as noted in the JLL report.
The growing interest in premium and luxury housing segments is likely to drive further investments and innovations in the real estate market, catering to the evolving preferences of today's homebuyers.
About JLLFounded in 1783, JLL (Jones Lang LaSalle) is a leading professional services firm specializing in real estate and investment management.
With operations in over 80 countries, JLL offers a broad range of services, including property management, facility management, project management, and corporate real estate outsourcing.
Frequently Asked Questions
What is the percentage growth in luxury housing sales in 2024 compared to 2023?
The luxury housing segment (flats priced above Rs 5 crore) saw an 80% growth in sales in 2024 compared to 2023.
How many housing units were launched in 2024, and what does this indicate?
Approximately 302,000 housing units were launched in 2024, marking the highest ever annual residential supply across the top seven cities in India, indicating a strong market demand.
Which cities led the annual launches in 2024?
Mumbai, Bengaluru, and Hyderabad led the annual launches in 2024, accounting for 60% of the total launches.
What factors are driving the growth in the luxury housing segment?
The growth in the luxury housing segment is driven by the rise in high-net-worth individuals (HNWIs), increased disposable incomes, and an evolving buyer preference for larger, tech-enabled, and future-ready homes.
What is the expected future trend in residential capital values according to the JLL report?
According to the JLL report, capital values are expected to continue their upward trajectory, driven by soaring housing demand and quality launches.
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