Luxury housing sales record 75% growth in 2023 on the back of robust demand: Report

The luxury housing segment is also an attractive investment avenue for high net worth individuals and non-resident Indians. the report said

Sales of luxury homes priced ₹4 crore and above have recorded a 75% Y-o-Y growth in sales in 2023 on the back of robust demand with Delhi-NCR recording the highest surge of 197% Y-o-Y followed by Pune, Hyderabad, and Mumbai, according to a new report by CBRE South Asia Pvt Ltd titled ‘India Market Monitor Q4 2023.’

Sales of luxury homes priced ₹4 crore and above have recorded a 75% Y-o-Y growth in sales in 2023 on the back of robust demand with Delhi-NCR recording the highest surge of 197% Y-o-Y. (Picture for representational purposes only) (Pixabay)

An almost 45% Y-o-Y increase in unit launches was also recorded in 2023.

The percentage share of the luxury segment in the overall residential unit sales stood at 4% in 2023, nearly doubling its proportion of 2% in 2022, said the report.

The increase can be attributed to the growing economy and an increase in affluent Indians aspiring for an elevated lifestyle. Additionally, this segment stands out as an attractive investment avenue for HNIs and NRIs seeking stability amid global economic uncertainties, the report said.

Young high-income professionals, start-up founders and nuclear families are also preferring luxury residences apartments, the report said.

Delhi-NCR records the highest surge

Delhi-NCR recorded the highest surge of 197% Y-o-Y in 2023. A total of 5530 housing units were sold in the city in 2023 and 1860 units were sold in 2022. In Mumbai 4,190 units were sold in 2023 and 3,390 units in 2022, the report said.

The overall residential sales across price categories exceeded 3.22 lakh units in 2023, registering a 9% Y-o-Y growth as compared to 2022.

Sustained momentum in demand also led developers to launch over 3.13 lakh new housing units in 2023, a 6% Y-o-Y increase.

Mid-end projects emerged as the leading category driving sales, recording a 45% share in total sales for 2023, followed by high-end and affordable projects. Pune, Mumbai and Bengaluru cumulatively accounted for 61% of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for a 67% share during 2023.

"In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favorable market conditions driving healthy growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive. A 75% surge in luxury unit sales and a substantial almost 45% rise in launches underscore the sector’s vibrancy,” said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

“The evolving market dynamics, especially in key cities like Delhi-NCR, Mumbai, Pune, Hyderabad, and Bengaluru, reflect a nuanced demand for high-end residences. The positive momentum witnessed over the past couple of years in new launches and sales is likely to continue in 2024,” he added.