Sales in luxury housing market in India surged nearly 27 percent compared to the same period last year, states a new report, further highlighting a significant uptick in India’s luxury housing segment.
As reported by the Hindustan Times, the recent report by CBRE South Asia Pvt Ltd shows that over 8,500 luxury housing units were sold from January to June 2024, which is a substantial increase from approximately 6,700 units during the first half of 2023.
Delhi-NCR led the luxury housing market, with sales of approximately 3,300 units, reflecting a 13.8 percent year-on-year increase. Mumbai followed with around 2,500 units sold, marking a 13.6 percent growth. Hyderabad also saw a remarkable 44 percent increase, with about 1,300 units sold. Pune experienced an extraordinary rise of 450 percent, with sales reaching 1,100 units.
Across all categories, the residential market witnessed a total of 156,000 units sold and more than 153,000 new units launched during the first six months of 2024. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for an impressive 63 percent of total residential sales in India during this period.
The luxury housing segment continued to show strong performance in the April-June 2024 quarter, with a 40.1 percent year-on-year increase in sales. Total sales during this quarter amounted to approximately 4,410 units, up from 3,150 units in the same quarter of 2023. Delhi-NCR, Mumbai, and Hyderabad were key markets, while Kolkata saw a notable two-fold increase in luxury residential sales.
Mumbai, Pune, and Hyderabad were dominant in new residential unit launches, capturing a significant cumulative share of 64 percent from January to June 2024. During the April-June 2024 quarter, over 70,100 units were sold, and more than 69,600 new units were launched. Mumbai, Pune, and Delhi-NCR accounted for 62 percent of apartment launches in this period.
Market Outlook
The luxury housing market is expected to maintain its momentum for the remainder of 2024. Positive homebuying sentiments, festive season promotions, and substantial land acquisitions by developers are anticipated to drive market activity. These factors are expected to balance supply and demand, supporting continued growth in the sector.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East, and Africa at CBRE, expressed optimism for the remainder of the year. “We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favorable 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,” Magazine said.
The luxury market is likely to see continued growth in the mid and high-end housing categories. The ideal price range for many homebuyers is shifting to ₹1 to ₹1.5 crore, while demand for premium (₹2 to ₹4 crore) and luxury housing (above ₹4 crore) is expected to rise. Low-density housing and plotted developments are anticipated to remain popular within the high-end and premium residential categories, with a trend towards urban peripheries.