Delhi-NCR records highest no. of sales with more than 3,300 luxury units in Jan-Jun ’24.
A report, ‘India Market Monitor Q2 2024’ by CBRE claims India’s luxury housing (units priced INR 4Cr and above) segment maintained strong sales momentum, registering a ~27% Y-o-Y increase in the Jan-Jun’24 period.
Total sales of luxury units during the Jan-Jun’24 period stood at ~8,500 compared to ~6,700 units during the same period last year. Among the leading cities in absolute terms, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, accounting for nearly 84% of the total luxury housing sales across the top seven cities. Further, Pune recorded a noteworthy increase in luxury sales activity, with demand growing nearly six-fold on an annual basis to touch ~1,100 units.
In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of ~3,300 units, a 13.8% Y-o-Y increase, followed by Mumbai at ~2,500 units, recording 13.6% Y-o-Y growth. While the sales in Hyderabad stood at ~1,300 units, a 44% Y-o-Y increase, Pune registered sales of 1,100 units, marking a 450% Y-o-Y increase during this period.
A similar trend prevailed during the Apr-June’24 quarter in the luxury housing segment across the top cities, registering a 40.1% Y-o-Y increase in sales. The quarter witnessed total sales of ~4,410 luxury housing units compared to ~3,150 units during the same quarter last year. Among the cities, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets during the quarter, while Kolkata saw a notable two-fold increase in luxury residential sales.
The surge in demand for luxury housing has been primarily driven by a growing preference by affluent buyers seeking enhanced amenities and more spacious living areas that complement their multifaceted lifestyle. Additionally, the aspirational class has been on an upward trend, significantly driving luxury sales. Furthermore, the rise in NRI and astute investors in the Indian real estate market has considerably contributed to the heightened demand for luxury properties.
This trend aligns with the noticeable shift in buyer preferences towards high-end units launched by leading developers, as evidenced by the substantial market share of tier-I developers. This shift is expected to persist, reflecting the evolving expectations of modern homebuyers who are now more discerning and well-informed about developer reputation, execution capability, and financial capability.
Overall Residential Sector (Jan-Jun’24)
Overall, the Indian housing market maintained its robust momentum during the Jan-Jun’24 period, a total of 156,000 units were sold, and over 153,000 new units were launched across all categories. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for an impressive 63% share in total residential sales in India during Jan-Jun’24.
In terms of total unit launches, Mumbai, Pune, and Hyderabad dominated the activity, capturing a significant cumulative share of 64% in Jan-Jun’24. This indicates a strong market dominance by these cities when it comes to introducing new residential projects.
During the Apr-Jun’24 quarter, sales of over ~70,100 units, and over ~69,600 new unit launches were recorded. Mumbai, Pune, and Delhi-NCR jointly dominated the market for apartment launches, having a cumulative share of 62%. Correspondingly, Mumbai, Pune, and Delhi-NCR accounted for the maximum share in sales in Apr-June ‘24. Mumbai led the sales, accounting for a 30% share, followed by Pune at 18% and Delhi-NCR at 15%.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable 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.”
“The luxury housing segment, particularly for properties priced at INR 4 crore and above, is set to thrive as buyers seek homes that align with their affluent lifestyles. Capital value growth in this segment is projected to stabilise, with an increasing focus on core project fundamentals such as quality, location, and access to essential infrastructure. Moreover, the ongoing mega infrastructure projects across the country, including transportation networks, highways, airports, and metro systems, are poised to bolster real estate growth. These developments are likely to unlock new markets, establish satellite cities, and stimulate growth in peripheral areas, making luxury housing an attractive investment,” he added.
Residential Outlook
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Building upon the residential sector’s current growth trajectory, we anticipate a strong finish to the year, underpinned by favourable homebuying sentiments, upcoming festive season promotions, and widespread land acquisitions by developers. Collectively, these factors will likely continue striking a balance between supply and demand dynamics and boost market activity in H2 2024. |
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The mid and high-end housing categories are expected to remain the primary drivers of India’s residential market. These segments are currently being redefined, with the price range of INR 1 to 1.5 crore becoming an ideal choice for many homebuyers. In addition, buyers seeking homes to complement their affluent lifestyle are likely to boost the demand for premium (INR 2 to 4 crore) and luxury housing (INR 4 crore and above). |
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Capital value growth is anticipated to stabilise, with a heightened focus on core project fundamentals and accessibility becoming paramount considerations for capital deployment. Projects’ quality, location, features, and convenient access to essential infrastructure will largely influence these trends, all set against the backdrop of accelerating urbanisation. |
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The country’s ongoing mega infrastructure projects, encompassing transportation networks, highways, airports, and metro networks, are expected to support real estate growth and, in turn, create new residential nodes. These projects hold the potential to unlock new markets, establish satellite cities, and stimulate development in peripheral areas. |
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Low-density housing and plotted developments are expected to maintain their appeal within the high-end / premium residential categories. Concurrently, a trend towards urban peripheries for these housing segments is anticipated. |
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