India's luxury housing segment—units priced ₹4 crore and above—maintained strong sales momentum, registering a 27% year-on-year increase in the first six months of 2024, according to real estate consulting firm CBRE South Asia.
Total sales of luxury units during the January-June 2024 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 around 1,100 units.
In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of around 3,300 units, a 13.8% year-on-year increase, followed by Mumbai at around 2,500 units, recording 13.6% Y-o-Y growth. While the sales in Hyderabad stood at around 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 April-June’24 quarter in the luxury housing segment across the top cities, registering a 40.1% year-on-year increase in sales. The quarter witnessed total sales of around 4,410 luxury housing units compared to around 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, the report says, adding that the aspirational class has been on an upward trend, significantly driving luxury sales.
“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,” says the report.
Overall, the Indian housing market maintained its robust momentum during the first half of 2024, 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 63% share in total residential sales in India.
“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,” says Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
“The luxury housing segment, particularly for properties priced at ₹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,” says Magazine.
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