Luxury housing sales in India surge by 97% in top 7 cities

Luxury housing sales: The luxury housing segment in India, consisting of units priced at over Rs 4 crore, has experienced substantial growth, according to a report by CBRE South Asia Pvt. Ltd, a real estate consulting firm. 

The January-September period witnessed a 97 per cent year-on-year increase in luxury housing sales, with around 9,200 units sold compared to 4,700 units during the same period last year, the report said. 

Delhi-NCR, Mumbai, and Hyderabad emerged as the top three markets for luxury housing sales, collectively accounting for nearly 90 per cent of total sales in the top seven cities. Delhi-NCR led with a share of about 37 per cent, followed by Mumbai, Hyderabad, and Pune, which accounted for approximately 35 per cent, 18 per cent, and 4 per cent, respectively.

The festive season in 2023 is predicted to set a new record, with housing sales expected to exceed 150,000 units. This optimistic outlook is based on the robust sales performance throughout the first nine months of 2023. The housing market is set for further growth as the festive season progresses.

Overall residential sales across various price categories surpassed 230,000 units during Jan-Sep’23, indicating a year-on-year growth of approximately 5 per cent. Developers responded to the sustained demand by launching over 220,000 new housing units during the same period. Mid-end projects dominated sales, accounting for nearly half of total sales, followed by high-end and affordable projects.

The Jul-Sep’23 quarter saw over 80,000 residential units sold, while new unit launches reached 72,000. Mumbai, Hyderabad, and Pune were prominent in the market for apartment launches. Pune, Mumbai, and Bangalore led in residential unit sales during the quarter.

Festive effect

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “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.”

“The Oct-Dec’23 quarter is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts. As the residential cycle matures amidst inflationary pressures, we have witnessed increasing demand in the mid-end and premium categories. Conversely, the premium and luxury segment is expected to emerge as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties,” added Magazine. 

According to the report, The affordability factor is no longer the sole consideration for homebuyers, with health and safety, sustainability, and the integration of smart home technologies becoming crucial factors in purchase decisions.