In a significant revelation, a report by real estate consultancy CBRE discloses a remarkable surge of 97% in the sale of luxury homes priced at Rs 4 crore or above during the first nine months of 2023, compared to the same period in the previous year. The data, released on Wednesday, sheds light on a dynamic shift in the real estate landscape, signaling changing preferences and an increasing demand for opulence.
Noteworthy Statistics: 9,200 Luxury Homes Sold in Top Seven Cities
In the top seven cities in India, a total of 9,200 luxury homes changed hands in the current year, a substantial increase from the 4,700 units recorded in the corresponding period last year. This surge is more than a statistical uptick; it represents a tangible transformation in the real estate dynamics, capturing the essence of evolving aspirations and a heightened desire for luxury living.
Festive Season Projections: Anticipating a Three-Year High
The “India Market Monitor Q3 2023” report from CBRE projects that home sales during the festive season this year are poised to reach the highest point in three years. The anticipation is palpable, with the expected sales surpassing the figures of 2021 (114,500 units) and 2022 (147,300 units), reaching a staggering 150,000 units in 2023.
Regional Dominance: Delhi-NCR, Mumbai, and Hyderabad Lead Luxury Housing Sales
Breaking down the regional data, Delhi-NCR emerges as the frontrunner, claiming a substantial 37% share with 3,409 units. Mumbai, Hyderabad, and Pune follow closely, contributing 35% (3,252 units), 18% (1,660 units), and 4% (332 units) respectively. These cities not only witness a real estate boom but serve as the epicenters of a paradigm shift in housing preferences.
Beyond Luxury: A Comprehensive View of Home Sales
Zooming out to encompass the broader real estate spectrum, the report indicates that overall home sales across price categories exceeded 230,000 units during January-September, marking a growth of approximately 5% compared to the previous year. Mid-end projects take the lead, comprising almost half of the total sales, closely followed by high-end and affordable projects.
Shifting Paradigms: Factors Influencing Home Purchase Decisions
The report unveils a shift in the factors influencing home purchase decisions. Affordability, once the sole determinant, is now sharing the spotlight with considerations such as health & safety, sustainability, and the integration of smart home technologies. Buyers are seeking a holistic and futuristic living experience beyond financial constraints.
Projections and Expectations: Insights from CBRE Leadership
Anshuman Magazine, Chairman, and CEO for India, South-East Asia, Middle East & Africa at CBRE, provides insights into the evolving market dynamics. “We anticipate the overall housing market to be further bolstered by the ongoing festive season in the coming months of 2023. With the pause in the interest rate cycle, incentives and schemes offered by developers in the festive season are likely to boost sales further,” he states. As the residential cycle matures amidst inflationary pressures, a discernible shift towards mid-end and premium categories is evident. The premium and luxury segment, in particular, is poised to become a coveted investment avenue for high net worth individuals (HNIs) and non-resident Indians (NRIs) looking to safeguard their investments amid global macroeconomic uncertainties.