City sees uptick in luxe residential sale with 44% growth in Q1 2023

The past two years have seen a realignment in homebuyers’ priorities and the need for owning a house has been further accentuated due to the uncertainty that the pandemic ushered. Mumbai led the market in terms of overall sales as well as the highest number of new launches -- 25,300 units

MUMBAI: The luxury residential housing sales have seen a 151% increase in January-March quarter of 2023, with Mumbai registering a 44% growth year on year while Delhi-NCR witnessed a 216% jump, according to ‘India Market Monitor Q1 2023’ report released by CBRE South Asia Pvt ltd, a leading real estate consulting firm, on Monday.

Mumbai, India - March 20, 2023: Clear weather over citiscape, at Bandra, in Mumbai, India, on Monday, March 20, 2023. (Photo by Vijay Bate/HT Photo) (HT PHOTO)

Mumbai recorded the sale of 19,900 units in Q1 2023 out of which 1,150 were sales of luxury units priced above ₹2.5 crore compared to 800 luxury units sold in Q1 of 2022, the report said.

The post-pandemic uptick in ownership of luxury housing results from homebuyers’ mindset of looking for larger spaces and a higher preference for home ownership with better amenities. Sales in Delhi-NCR surged by over 216%, Mumbai by 44%, Hyderabad by 800%, Kolkata by 100% and Pune by nearly 13 times on a Y-o-Y basis for the quarter ending Jan-Mar’ 23, the report said.

The past two years have seen a realignment in homebuyers’ priorities and the need for owning a house has been further accentuated due to the uncertainty that the pandemic ushered. Mumbai led the market in terms of overall sales as well as the highest number of new launches -- 25,300 units.

The report projected strong sales and launch momentum expected in the first half of 2023; a minor tapering in activity likely in the middle of the year but its impact could be cushioned by the festive season.

Projects in the higher ticket range ( ₹1.5 crore and above) would continue to see traction in sales as the market has witnessed a spate of new launches in this bracket of late; moreover, the impact of rising home mortgage rates is expected to be limited on this segment.

As large developers foray into tier-II cities, we expect to see a higher number of joint ventures and joint development initiatives as they strike partnerships with local players with an aim to manage regulatory hurdles and understand consumer preferences, the report said.