Luxury Housing Sales Soar by 27% in First Half of 2024; Delhi-NCR Leads Among Major Cities
The Indian real estate market, particularly the luxury housing segment, has witnessed a substantial increase in sales during the first half of 2024. According to a report by CBRE South Asia Pvt Ltd, luxury housing sales surged by nearly 27% from January to June 2024, compared to the same period last year. This remarkable growth underscores a robust demand for high-end residential properties, driven by affluent buyers and favorable market conditions.
Increase in Sales
More than 8,500 luxury housing units were sold in the first six months of 2024, a significant jump from approximately 6,700 units sold during the same period in 2023. This growth is a testament to the increasing appetite for luxury homes among wealthy buyers who are seeking enhanced amenities and spacious living areas. The market for luxury housing, defined as units priced above ₹4 crore, has been particularly buoyant in Delhi-NCR, Mumbai, and Hyderabad, which together accounted for nearly 84% of the total luxury housing sales across the top seven cities in India.
Delhi-NCR at the Forefront
Delhi-NCR emerged as the leader in luxury housing sales, with around 3,300 units sold, marking a 13.8% year-on-year (Y-o-Y) increase. The region's prominence in the luxury housing market is attributed to its strategic location, superior infrastructure, and a high concentration of affluent buyers. Following closely, Mumbai recorded sales of approximately 2,500 luxury units, reflecting a 13.6% Y-o-Y growth. Hyderabad also showed a remarkable performance with about 1,300 units sold, representing a staggering 44% Y-o-Y increase.
Market Dynamics and Buyer Preferences
The surge in luxury housing sales can be attributed to several factors. Firstly, there is a growing preference among affluent buyers for homes that offer modern amenities, ample space, and exclusivity. Additionally, the rise in non-resident Indian (NRI) investments and astute investors has significantly contributed to the heightened demand for luxury properties. This demographic is increasingly looking to invest in properties that not only provide a high standard of living but also promise strong returns on investment.
Overall Market Performance
The overall residential market in India also demonstrated robust activity during the January to June 2024 period. A total of 156,000 units were sold across all categories, with over 153,000 new units launched. Mumbai, Pune, and Bengaluru were the leading cities, accounting for an impressive 63% share of the total residential sales in India during the first half of the year. This trend indicates a healthy demand for residential properties, driven by positive home-buying sentiments and strategic developments by real estate developers.
Quarterly Trends
In the luxury housing segment, the April to June 2024 quarter also showed a significant increase in sales. The quarter saw around 4,410 luxury housing units sold, compared to approximately 3,150 units during the same period last year, marking a 40.1% Y-o-Y growth. Delhi-NCR, Mumbai, and Hyderabad continued to be the prominent markets during this period, while Kolkata experienced a notable two-fold increase in luxury residential sales.
Launches and Market Share
In terms of new launches, Mumbai, Pune, and Hyderabad dominated the activity, capturing a significant cumulative share of 64% of the total new residential units introduced between January and June 2024. This indicates strong market dominance by these cities in terms of launching new residential projects. During the April to June 2024 quarter, over 70,100 units were sold, and more than 69,600 new units were launched, with Mumbai, Pune, and Delhi-NCR leading the market for apartment launches.
Future Outlook
The outlook for the Indian housing market remains optimistic for the remainder of the year. Anshuman Magazine, Chairman and CEO of CBRE - India, South-East Asia, Middle East, and Africa, emphasized that the strong momentum in the housing market is expected to continue, driven by favorable home-buying sentiments, festive season promotions, and significant land acquisitions by developers. These elements are anticipated to balance supply and demand dynamics and invigorate market activity in the second half of 2024.
Conclusion
The luxury housing segment in India is poised for continued growth, with the mid and high-end housing categories expected to remain the primary drivers of the residential market. The price range of ₹1 to ₹1.5 crore has become an ideal choice for many homebuyers, while the demand for premium and luxury housing is likely to be boosted by buyers seeking homes that complement their affluent lifestyles. Low-density housing and plotted developments are expected to maintain their appeal within the high-end residential categories, with a trend towards urban peripheries anticipated for these segments.
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