Mumbai Leads the Luxury Housing Boom in India
Recent data from CREDAI-MCHI reveals a significant 18% increase in total sales value across India’s top seven property markets, highlighting the growing demand for luxury properties.
Luxury HousingReal EstateCredaimchiMumbaiHighend PropertiesReal EstateDec 02, 2024
Recent data from CREDAI-MCHI reveals an 18% increase in total sales value across India’s top seven property markets, amounting to ₹279,309 crore in the first half of FY 2024-25. Notably, this growth comes despite a 3% dip in the number of units sold, highlighting a clear shift in consumer preference toward luxury homes. The average price per home has risen sharply to ₹1.23 crore, compared to ₹1 crore during the same period last year.
Cities like Mumbai, Delhi-NCR, and Bengaluru have emerged as frontrunners in this segment. Mumbai Metropolitan Region (MMR) maintained its leadership in premium property sales, with a stable average ticket size of ₹1.47 crore and a 2% growth in sales value to ₹114,529 crore, followed by Delhi-NCR and Bengaluru. Other cities like Hyderabad, Chennai, Pune, and Kolkata also registered substantial increases in average ticket sizes, showcasing the nationwide demand for premium housing.
The surge in demand for luxury housing is more than just a trend; it reflects the evolving aspirations of homebuyers seeking to elevate their lifestyles. According to a report titled India Market Monitor Q3 2024 – Residential by CBRE South Asia Pvt. Ltd, sales of luxury units priced above ₹4 crore rose by 37.8% year-on-year (YoY) during January to September 2024. In terms of luxury residential unit sales, Delhi-NCR topped with sales of around 5,855 units, a 72% Y-o-Y increase, followed by Mumbai at around 3,820 units, recording 18% Y-o-Y growth, the CBRE report noted.
Developers are increasingly catering to this shift in buyer preferences by introducing unique, high-end projects. Data from Anarock suggests that holiday homes, farmhouses, and villas have seen a rise in demand, particularly among buyers seeking spacious properties that can accommodate remote work setups and long-term investments. Approximately 25% of luxury buyers are investing in holiday homes, while 20% prefer farmhouses.
A report by Anarock showed that of the 25 ultra-luxury properties sold across the top cities in 2024 so far, Mumbai alone sold 21 units collectively worth ₹2,200 crore, representing an 84% share of the total deals in this segment across the top cities.
Looking ahead, the luxury housing market is poised for sustained growth, fueled by robust demand from NRIs, HNIs, and affluent domestic buyers. Developers are responding with innovative projects that not only meet but exceed buyer expectations. The luxury housing market in India is no longer just about homes; it’s about crafting lifestyles, experiences, and legacies. As the segment continues to evolve, it remains a lucrative and aspirational investment avenue, setting new benchmarks in real estate.
Frequently Asked Questions
What is the current trend in India's luxury housing market?
The luxury housing market in India is witnessing a significant surge, driven by a growing preference for exclusivity and premium living spaces. Despite global economic uncertainties, the demand for high-end properties has shown remarkable resilience.
What is the growth in total sales value across India’s top seven property markets?
Recent data from CREDAI-MCHI reveals an 18% increase in total sales value across India’s top seven property markets, amounting to ₹279,309 crore in the first half of FY 2024-25.
Which cities are leading in luxury housing sales?
Mumbai, Delhi-NCR, and Bengaluru have emerged as frontrunners in luxury housing sales. Mumbai maintained its leadership with a stable average ticket size of ₹1.47 crore and a 2% growth in sales value to ₹114,529 crore.
What types of luxury properties are in high demand?
Holiday homes, farmhouses, and villas are seeing a rise in demand, particularly among buyers seeking spacious properties for remote work setups and long-term investments.
What is the future outlook for the luxury housing market in India?
The luxury housing market is poised for sustained growth, fueled by robust demand from NRIs, HNIs, and affluent domestic buyers. Developers are responding with innovative projects that meet and exceed buyer expectations.
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