Luxury Real Estate: Maintaining a strong sales momentum, the luxury housing segment in India registered a 130 per cent y-o-y surge across top-7 cities during the January-June 2023 period. The total sales of luxury housing units during the period stood at 6,900, compared with 3,000 units during the year-ago period, according to a report by real estate consultant CBRE South Asia.
In terms of sales, Delhi-NCR topped with sales of 2,900-unit, marking a 205 per cent Y-o-Y increase, followed by Mumbai, which recorded sales of 1,900-units, an 18 per cent Y-o-Y growth
“Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, combined together accounting for nearly 90 per cent of the total luxury housing sales across top-7 cities,” CBRE said in the report, titled ‘India Market Monitor Q2 2023’.
It added that Hyderabad recorded the highest percentage increase in sales on a Y-o-Y basis during January-June 2023, with nearly 14-fold growth with total sales of 1,400 units. This was followed by a nearly six-fold increase in sales in Pune and over three-fold jump in Delhi-NCR on a y-o-y basis.
“In terms of the quantum of sales of luxury residential units, Delhi-NCR topped with sales of 2,900-unit, marking a 205 per cent Y-o-Y increase; followed by Mumbai, which recorded sales of 1,900-units, an 18 per cent Y-o-Y growth; while sales in Kolkata stood at 200 units, a 100 per cent Y-o-Y increase; and Pune recorded sale of 300-units, registering a 500 per cent Y-o-Y increase during this period,” CBRE said in the report.
A similar trend prevailed during the April-June 2023 quarter in the luxury housing segment across the top cities registering a 121 per cent y-o-y increase in sales. The quarter saw total sales of 3,100 luxury housing units, compared with 1,400 units during the same quarter last year.
Among the cities, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets during the quarter, while luxury sales in Hyderabad increased by 20 times, it jumped three-fold in Delhi-NCR.
“The surge in demand for luxury housing was primarily driven by a growing preference for enhanced amenities and more spacious living areas. Moreover, it is the aspirational class that has been on an upward trend and driving luxury sales. Besides, the rise in NRI investments in the Indian real estate market has significantly contributed to the heightened demand for luxury properties,” it said.
Overall, in the residential sector, during January-June 2023 period, a total of 154,000 units were sold, and over 151,000 new units were launched across all categories. During the January-June 2023 period, sales increased by about 3 per cent compared to the same period a year ago, whereas new launches recorded a growth of 9 per cent y-o-y basis, highlighting a substantial rise in the newly launched residential properties compared to the corresponding period in the previous year.
Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East & Africa) of CBRE, said, “We are witnessing an impressive growth and resilience of the luxury housing segment, as evident from the data showing a remarkable 130 per cent increase in sales. This surge signifies the strong demand and positive momentum in the luxury housing market. Looking ahead, we anticipate a stronger second half of 2023 in the residential market, supported by factors such as a healthy supply pipeline, the approaching festive season, and stabilising mortgage rates.”
He added that despite global macroeconomic challenges, the residential sector is expected to maintain robust sales momentum. Additionally, the premium and luxury segments are expected to perform well with new launches, and the volatility in mortgage rates on demand in this segment is anticipated to be limited.
Kunal Rishi, chief operating officer, Paras Builtech, said, “The real estate landscape of Delhi-NCR is undergoing a remarkable shift, with luxury housing becoming the preferred choice for discerning buyers. The recent accolade of recording the highest sales of apartments priced above Rs 4 crore during the first half of 2023 underscores the growing allure of luxurious living in this vibrant market.”
He added that aspirational millennials, a focus on enhanced amenities, expansive living spaces, and substantial NRI investments are contributing to the surge in demand for luxury properties in the region, with the thriving markets of Dwarka Expressway, Gwal Pahari and Golf Course Extension playing a crucial role in its growth.
Aakash Ohri, group executive director and chief business officer of DLF, said, “The luxury housing sector is expected to sustain strong sales momentum, on the back of rapid urbanisation, improved affordability and aspirational needs. There was a resurgence in demand in the luxury housing segment that has almost doubled in the last five years, primarily on account of the improvement in the financial position of reputable and larger real estate players. Case in point, success of The Arbour, almost set a trend for the real estate sector in Delhi-NCR and there has been a slew of luxury real estate launches ever since.”
He said today Indian developers are delivering projects of international standards, attracting buyers not just from India, but overseas too. Among other Indian cities that have recorded a rise in demand for luxury properties, NCR stands out observing not just an increase in sale, but even rising rentals for luxury homes.
“Within NCR, Gurugram, particularly has emerged as a preferred choice for luxury homebuyers, with large presence of HNIs and UNHIs base and a significant rise in the number of affluent millennials in the region, who prefer to stay close to work, and are willing to go the extra mile for their convenience and indulgent lifestyle. There has also been a newly stirred up insistence on luxurious integrated townships that offer affluent homes, safety, and security to the homebuyers,” he said.
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