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Luxury homes priced over ₹4 crore record 10% Y-o-Y growth in Jan-March 2024 across top seven cities
Mumbai records highest sales with more than 1,300 luxury units in Q1 2024, registering a 15% Y-o-Y increase
Luxury housing units priced more than ₹4 crore and above recorded a 10% Y-o-Y sales growth during January to March 2024 across seven major cities. The percentage share of the luxury segment in the overall residential unit sales stood at about 5% during the period, according to CBRE South Asia’s report titled 'India Market Monitor Q1 2024'.
As per the data, the total sales in this price category stood at 4,140 units during January-March this year across seven major cities from 3,780 units in the year-ago period.
There was an almost 64% Y-o-Y increase in new launches of luxury segment units during January to March 2024.
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As per the data for sales of housing units costing ₹4 crore and above, Mumbai recorded the highest surge in unit sales during the review quarter, registering a 15% Y-o-Y increase in luxury segment residences. Delhi-NCR saw a decline in sales to 1,150 units from 1,880 units during the period under review.
In Bengaluru, sales fell to 10 units from 70 units. Kolkata saw a decline to 70 units from 110 units. Sales in Pune surged multi-fold to 700 units from 150 units. In Hyderabad, sales grew to 800 units from 380 units.
45% of luxury housing stock injected in the last five years
The resurgence in India’s luxury residential real estate has spurred robust growth, as about 45% of the overall luxury stock was injected in the last five years alone. The segment has also grown at a CAGR of over 9% since 2019 across the gateway cities.
Also Read: Delhi-NCR's real estate market: Here's why rich Indians are lapping up luxury properties
In addition, Mumbai leads the luxury segment, accounting for more than 40% of the country's total luxury inventory in January to March 2024. The city is a prominent and highly coveted market, attracting numerous HNIs and UHNIs, including top executives and Bollywood celebrities.
Locations such as Altamount Road, Nepean Sea Road, Worli, Prabhadevi, Juhu, and Bandra (West) in Mumbai command high capital values owing to premium locations, with an average ticket size often ranging from ₹20 to over 60 crore. Occasionally, apartments priced above ₹100 crore are also recorded.
Delhi-NCR follows closely, accounting for over 25% of the country’s luxury inventory in January to March 2024.
Delhi-NCR's luxury market
Like Mumbai, luxury properties in Delhi are concentrated in the southern part of the city, with areas such as Amrita Shergill Marg, Golf Links, and Prithviraj Road commanding average ticket sizes usually ranging from ₹40 to ₹60 crore. In recent years, Gurgaon has emerged as a prominent luxury market within the region.
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The demand for gated communities intensified during the COVID-19 pandemic, bolstering Gurgaon’s reputation as a luxury destination. Locations such as DLF Phase I/II, Golf Course, and Golf Course Extension typically witness average ticket sizes between ₹10 to 20 crore.
Further, Hyderabad, experiencing remarkable growth driven by a pro-business environment, claims the third spot with an almost 10% share of the country’s luxury inventory. The city has witnessed an influx of luxury apartments and a surge in demand within this segment. Areas such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Neopolis report sales with average ticket sizes ranging from ₹20 to over ₹40 crore.
Homes priced between ₹45 lakh to ₹1 crore recorded 47% share in total sales
The overall residential sales across categories reached almost 85,000 units in January to March 2024, registering an 8% Y-o-Y growth. Sustained momentum in demand also led developers to launch nearly 80,000 new housing units in Q1 2024. Mid-end projects (priced between ₹45 lakh to ₹1 crore) emerged as the leading category driving sales, recording a 47% share in total sales for January to March 2024, followed by high-end ( ₹1 to ₹2 crore) and affordable projects (up to ₹45 lakh).
Pune, Mumbai, and Bengaluru cumulatively accounted for about 65% of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for an almost 69% share during January to March 2024.
Also Read: Real Estate trends: Five clinchers for a ₹100 crore property deal
"The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterized by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience,” said Anshuman Magazine, chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.
