Mumbai Leads in India's Luxury Housing Market With Over 1300 flats Sold Above Rs 4 cr in Q1: CBRE Report
India's luxury housing market has demonstrated significant resilience and growth, particularly highlighted by the performance in the first quarter of 2024. According to a report by CBRE, the luxury sector experienced a 10% year-on-year increase in sales. This growth is part of a broader positive trend in the residential market, where nearly 85,000 units were sold in the same quarter, marking an 8% increase compared to the previous year.
Mumbai, known for its sky-high real estate prices and upscale locales, has emerged as the undisputed leader in this segment. Over 1,300 luxury homes, each priced above Rs 4 crore, were sold in the city during this period. This figure represents more than 40% of India's total luxury housing inventory. The city's affluent areas such as Altamount Road, Nepean Sea Road, Bandra, and Worli have been particularly popular among high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), with properties often fetching prices between Rs 20 crore to over Rs 60 crore, and occasionally crossing the Rs 100 crore mark.
Following Mumbai, the Delhi-National Capital Region (NCR) accounted for over 25% of the luxury market inventory. South Delhi and Gurgaon are notable for their high-end properties. South Delhi features prestigious addresses like Amrita Shergill Marg and Prithviraj Road, where luxury homes command prices similar to Mumbai's prime locations. Gurgaon, known for its gated communities and modern amenities, features properties in areas such as DLF Phase I/II and the Golf Course extensions, with prices ranging from Rs 10 crore to Rs 20 crore.
Hyderabad stands third, holding nearly a 10% share of the national luxury inventory. The city has seen a surge in demand for luxury apartments, thanks to its pro-business environment and the growth of IT industries. Localities such as Jubilee Hills and Hitech City are particularly sought after, with properties often priced between Rs 20 crore and Rs 40 crore.
The report from CBRE highlights a compounded annual growth rate (CAGR) of over 9% since 2019 in the luxury segment across major Indian cities. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, remarked on the sector's robust fundamentals, driven by rising household incomes and greater consumer spending power. These dynamics are expected to sustain the growth of a market segment that is increasingly focused on high-quality and financially prudent investments.
The broader residential market's growth isn't limited to luxury homes alone. Mid-segment properties, priced between Rs 45 lakh and Rs 1 crore, played a significant role, accounting for nearly half of all transactions. This segment, along with the luxury market, is increasingly emphasizing sustainability. Modern buyers are prioritizing not just the quality and location of their homes, but also their environmental impact, leading to a greater demand for features like energy-efficient appliances, rainwater harvesting systems, and renewable energy sources.
As the luxury housing market continues to expand, it remains a vital part of India's real estate industry, promising lucrative opportunities for investors and a sophisticated lifestyle for buyers. The detailed attention to sustainability also showcases a forward-thinking approach that aligns with global real estate trends, ensuring that India's luxury real estate market remains competitive and attractive to a global audience.
