Delhi-NCR Leads Surge in Demand for Luxury Apartments: Cushman & Wakefield Report
In the realm of luxury real estate, Delhi-NCR has emerged as the frontrunner, witnessing a remarkable surge in demand for upscale apartments. During the March quarter, the region accounted for a staggering 61% of total luxury apartment launches across India. This upward trajectory reflects a growing inclination among buyers towards luxurious living spaces, with projects often selling out within days of their launch. Notably, established developers have capitalized on this trend, channeling their resources and expertise into crafting premium residences that cater to the discerning tastes of modern India.
Changing Landscape of Luxury Real Estate
The data compiled by Cushman & Wakefield paints a vivid picture of the evolving luxury real estate landscape. Luxury apartments constituted 61% of total launches in Delhi-NCR during the March quarter, a significant contrast to Mumbai's 26% and Bengaluru's 19%. Interestingly, all eight major cities in India experienced a surge in luxury apartment launches since the onset of the pandemic, underscoring developers' heightened focus on catering to the burgeoning demand for upscale housing.
Industry Perspectives
Commenting on this paradigm shift, Shalin Raina, Managing Director of Residential Services at Cushman & Wakefield, noted that the demand for larger, more luxurious homes has prompted established developers to deliver premium living spaces tailored to modern aspirations. This sentiment was echoed by Ashwin Chadha, CEO of India Sotheby's International Realty, who emphasized the discernible shift in homebuying behavior towards luxury and uber-luxury segments.
Growth Trajectory
The share of luxury apartments has witnessed a meteoric rise, soaring to 38% in 2024 from a mere 6% in 2019 in Ahmedabad. Similar growth trends were observed in Bengaluru, Chennai, and Hyderabad, reflecting the nationwide surge in demand for upscale residences. In line with these developments, high-end luxury apartments captured a 34% share in the March quarter, marking a substantial increase from 13-14% recorded in 2019.
Urban Dynamics and Infrastructure
The transformation of India's real estate landscape has been particularly pronounced in Mumbai, which has evolved into a thriving hub for luxury properties. The city's ongoing infrastructural advancements and improved connectivity have catalyzed a surge in high-value transactions, attracting both investors and homebuyers alike. Similarly, Gurugram has witnessed significant infrastructural development and enhanced connectivity, further bolstering its appeal among homebuyers.
The rise of luxury real estate in India, spearheaded by Delhi-NCR's commanding presence, underscores a broader shift in consumer preferences and aspirations. As developers continue to invest in premium living spaces, the luxury apartment segment is poised for sustained growth, promising a vibrant future for the country's upscale real estate market.
