More than 8500 luxury housing units were sold in the January to June 2024 period compared to around 6,700 units during the same period last year registering an almost 27% increase in sales. Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, accounting for nearly 84% of the total luxury housing sales of units priced more than โน4 crore across the top seven cities, said a report by CBRE South Asia Pvt Ltd.
The surge in demand for luxury housing has been driven by a growing preference by affluent buyers seeking enhanced amenities and more spacious living areas. Additionally, the aspirational class has been on an upward trend, significantly driving luxury sales. The rise in NRI and astute investors in the Indian real estate market has contributed to the heightened demand for luxury properties.
Overall, a total of 156,000 units were sold, and over 153,000 new units were launched across all categories during the January to June 2024 period. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for an impressive 63% share in total residential sales in India during the first half of the year.
Delhi-NCR tops luxury housing sales
In terms of quantum of luxury residential unit sales, Delhi-NCR topped with sales of around 3,300 units, a 13.8% Y-o-Y increase, followed by Mumbai at around 2,500 units, recording 13.6% Y-o-Y growth. While the sales in Hyderabad stood at around 1,300 units, a 44% Y-o-Y increase, Pune registered sales of 1,100 units, marking a 450% Y-o-Y increase during this period, the report showed.
A similar trend prevailed during the April-June 2024 quarter in the luxury housing segment across the top cities, registering a 40.1% 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 showed.
Among the cities, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets during the quarter, while Kolkata saw a notable two-fold increase in luxury residential sales, the report showed.
Mumbai, Pune and Hyderabad witness maximum launches of housing units
In terms of total unit launches, Mumbai, Pune, and Hyderabad dominated the activity, capturing a significant cumulative share of 64% in January to June 2024. This indicates a strong market dominance by these cities when it comes to introducing new residential projects.
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During the Apr-Junโ24 quarter, sales of over 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%. Correspondingly, Mumbai, Pune, and Delhi-NCR accounted for the maximum share in sales in Apr-June โ24. Mumbai led the sales, accounting for a 30% share, followed by Pune at 18% and Delhi-NCR at 15%, the report showed.
“We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable homebuying sentiments, festive season promotions, and significant land acquisitions by developers. These elements are expected to balance supply and demand dynamics and invigorate market activity,โ said Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
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Building upon the residential sectorโs current growth trajectory, we anticipate a strong finish to the year, underpinned by favourable homebuying sentiments, upcoming festive season promotions, and widespread land acquisitions by developers. Collectively, these factors will likely continue striking a balance between supply and demand dynamics and boost market activity in H2 2024, the report said.
The mid and high-end housing categories are expected to remain the primary drivers of Indiaโs residential market. These segments are currently being redefined, with the price range of โน1 to 1.5 crore becoming an ideal choice for many homebuyers. In addition, buyers seeking homes to complement their affluent lifestyle are likely to boost the demand for premium ( โน2 to โน4 crore) and luxury housing ( โน4 crore and above).
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Low-density housing and plotted developments are expected to maintain their appeal within the high-end / premium residential categories. Concurrently, a trend towards urban peripheries for these housing segments is anticipated, the report added.
