Demand for luxury homes in Bengaluru falls by half in Apr-Jun: CBRE report

Sales of luxury homes reached 3,100 units in India during April-June, up from 1,400 units in the same period last year, however, sales in Bengaluru dropped.

The demand for luxury housing in India rose in the April to June period, according to a report. CBRE, a real estate consultancy firm, released an analysis of the luxury property market across seven major cities, including Bengaluru, Hyderabad, Delhi-NCR, Pune, Chennai, Kolkata and Mumbai.

3,100 luxury housing units - priced at ₹4 crore and above - were sold in the quarter, compared to 1,400 in the year-ago period. (Mahindra Lifespace)

3,100 luxury housing units - priced at ₹4 crore and above - were sold in the quarter, compared to 1,400 in the year-ago period. Hyderabad saw a 20-fold rise in sales, selling 1,000 units in the quarter, against the 50 units sold in the corresponding period last year. Delhi-NCR also performed well, selling 1,050 units versus the 350 units sold year-over-year (y-o-y).

Pune's luxury home sales inched up from nil last year to 150 units this year in April to June, whereas, Chennai and Kolkata each sold 50 units, same as last year.

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"We are witnessing an impressive growth and resilience of the luxury housing segment. 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," the Chairman and CEO of India, South-East Asia, Middle East & Africa of CBRE, said.

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"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 (High Networth Individuals)and UHNIs (Ultra High Networth Individuals) base and a significant rise in the number of affluent millennials in the region," DLF Group Executive Director & Chief Business Officer Aakash Ohri said.