Luxury housing sales rises by 27% (YoY) between Jan-June across top seven Indian cities

The sale of luxury houses in India increased by 27 per cent during the Jan- June 2024 period as compared to the same period last year, highlights a report by CBRE South Asia a real estate consulting firm.

The report noted that the luxury house segment of price Rs 4 crore and above registered 27 per cent growth by the total sale of around 8500 units during the Jan-Jun'24 period. 

Last year it was around 6,700 units during the same period.

The report highlighted that among the leading cities in absolute terms, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, accounting for nearly 84 per cent of the total luxury housing sales across the top seven cities. 

Further, Pune recorded a noteworthy increase in luxury sales activity, with demand growing nearly six-fold on an annual basis to touch around 1,100 units.

"In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of around 3,300 units, a 13.8 per cent Y-o-Y increase, followed by Mumbai at around 2,500 units, recording 13.6 per cent Y-o-Y growth. 

While the sales in Hyderabad stood at around 1,300 units, a 44 per cent Y-o-Y increase, Pune registered sales of 1,100 units, marking a 450 per cent Y-o-Y increase during this period" said the report.

The report pointed out that a similar trend prevailed during the Apr-June'24 quarter in the luxury housing segment across the top cities, registering a 40.1 per cent Y-o-Y increase in sales. 

The quarter witnessed total sales of around 4,410 luxury housing units compared to around 3,150 units during the same quarter last year.

The report added that Kolkata also saw a notable two-fold increase in luxury residential sales. 

The surge in demand for luxury housing has been primarily driven by a growing preference by affluent buyers seeking enhanced amenities and more spacious living areas that complement their multifaceted lifestyle.

"We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable home-buying sentiments, festive season promotions, and significant land acquisitions by developers. These elements are expected to balance supply and demand dynamics and invigorate market activity" said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

He also added that "the luxury housing segment, particularly for properties priced at INR 4 crore and above, is set to thrive as buyers seek homes that align with their affluent lifestyles. 

Capital value growth in this segment is projected to stabilise, with an increasing focus on core project fundamentals such as quality, location, and access to essential infrastructure".

Additionally, the report added that aspirational class has been on an upward trend, significantly driving luxury sales. 

Furthermore, the rise in NRI and astute investors in the Indian real estate market has considerably contributed to the heightened demand for luxury properties. 

This trend aligns with the noticeable shift in buyer preferences towards high-end units launched by leading developers, as evidenced by the substantial market share of tier-I developers.

The report noted that this shift is expected to persist, reflecting the evolving expectations of modern homebuyers who are now more discerning and well-informed about developer reputation, execution capability, and financial capability.

Overall, the Indian housing market maintained its robust momentum during the Jan-Jun'24 period, a total of 156,000 units were sold, and over 153,000 new units were launched across all categories. 

Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for an impressive 63 per cent share in total residential sales in India during Jan-Jun'24.During the Apr-Jun'24 quarter, sales of over around 70,100 units, and over 69,600 new unit launches were recorded. Mumbai, Pune, and Delhi-NCR jointly dominated the market for apartment launches, having a cumulative share of 62 per cent. 

Correspondingly, Mumbai, Pune, and Delhi-NCR accounted for the maximum share in sales in April-June '24. Mumbai led the sales, accounting for a 30 per cent share, followed by Pune at 18 per cent and Delhi-NCR at 15 per cent.