Supply of new luxury projects hits 5-year high in New Delhi, Mumbai, Bengaluru, 4 other cities: Survey

Luxury housing projects continue to enjoy a significant share in the total launches in the overall real estate space thanks to post-pandemic demand. A survey by property consultant ANAROCK has found that the National Capital Region (NCR), the Mumbai Metropolitan Region (MM), Bengaluru, Pune, Hyderabad, Chennai and Kolkata saw the launch of about 31,180 luxury projects in the July-September period, which is 27 per cent of the total 1,16,220 real estate projects during this period.

The survey comes at a time when India is all set to enter the festive season, a period that is typically characterised by consumers lining up their big purchases of the entire year and hence leads to demand for real estate assets.

According to ANAROCK, which defines housing projects priced above Rs 1.5 crore as luxury homes, this is the highest quarterly supply in the luxury segment entering the market in the past five years. In the corresponding period in 2018, the share of the segment in the overall project launches had stood at nine per cent, with 4,590 luxury projects.

Among the seven cities, Hyderabad registered the highest supply of luxury projects, at 14,340 units, followed by the Mumbai Metropolitan Region, with about 7,830 units, the survey found.

Here are some of the other findings of the survey:

• Out of the total participants, 16 per cent of consumers prefer to buy luxury homes now in stark contrast to nine per cent in the first half of 2019
• In the affordable housing segment, the share of new supply has declined to 18 per cent in the quarter ended September 2023 from 42 per cent in the corresponding period in 2018
• In the quarter ended September 2018, 21,900 units out of the total 52,120 new launches in the seven cities were affordable homes

It also found out that while the share of affordable homes remained unchanged in the quarter ended September 2023, at 18 per cent, as the previous year, it saw a significant decline from 24 per cent in the corresponding period in 2021, 41 per cent in 2029, and 42 per cent in 2018. The property consultant categorises housing projects priced up to Rs 40 lakh as affordable homes.

“Developers have been bullish about the luxury homes segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top seven cities. Post-pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space," said Prashant Thakur, Regional Director and Head-Research at ANAROCK Group.

Meanwhile, a city-wise analysis of the data highlighted that Chennai was the only city, among the top seven, to witness a drop in the supply of launches in the luxury segment during the three-month period compared with the levels seen five years ago.