India’s Luxury Housing Market Sees 27% YoY Growth in First Half of 2024
India's luxury housing segment, comprising units priced at Rs 4 crore and above, witnessed a 27% year-on-year increase during the January-June 2024 period, according to a report by CBRE South Asia Pvt. Ltd. titled "India Market Monitor Q2 2024."
In the first half of 2024, luxury unit sales reached 8,500, up from 6,700 units in the same period last year. The leading cities in luxury housing sales were Delhi-NCR, Mumbai, and Hyderabad, which together accounted for nearly 84% of the total sales in the top seven cities. Notably, Pune saw a six-fold increase in luxury sales, reaching 1,100 units.
Sales Breakdown by City
- Delhi-NCR: 3,300 units sold, a 13.8% YoY increase.
- Mumbai: 2,500 units sold, a 13.6% YoY increase.
- Hyderabad: 1,300 units sold, a 44% YoY increase.
- Pune: 1,100 units sold, a 450% YoY increase.
The trend continued in the April-June 2024 quarter, with luxury housing sales rising 40.1% YoY, totaling 4,410 units compared to 3,150 units in the same quarter last year. Delhi-NCR, Mumbai, and Hyderabad remained key markets, while Kolkata saw a notable doubling in luxury residential sales.
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Drivers of Luxury Housing Demand
The surge in luxury housing demand is driven by affluent buyers seeking enhanced amenities and spacious living areas that match their multifaceted lifestyles. The rising aspirational class, along with increased interest from NRIs and savvy investors, has also fueled demand. The preference for high-end units launched by reputable developers reflects the modern homebuyer’s evolving expectations regarding developer reputation, execution capability, and financial stability.
Overall Residential Market Performance (Jan-Jun 2024)
The Indian housing market maintained strong momentum in the first half of 2024, with 156,000 units sold and over 153,000 new units launched across all categories. Mumbai, Pune, and Bangalore led in total residential sales, accounting for 63% of the market.
In terms of new unit launches, Mumbai, Pune, and Hyderabad dominated, capturing a combined 64% share. The April-June 2024 quarter saw sales of over 70,100 units and over 69,600 new launches, with Mumbai, Pune, and Delhi-NCR leading in apartment launches and sales. Mumbai held a 30% share in sales, followed by Pune at 18% and Delhi-NCR at 15%.
Expert Insight
Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, commented, “We foresee strong momentum in the housing market for the rest of the year, driven by positive homebuying sentiments, festive season promotions, and significant land acquisitions by developers. These factors are expected to balance supply and demand and invigorate market activity.”
Future Outlook
The luxury housing segment, especially properties priced at Rs 4 crore and above, is set to flourish as buyers seek homes that match their affluent lifestyles. Capital value growth in this segment is expected to stabilise, with a focus on quality, location, and access to essential infrastructure. Additionally, ongoing mega infrastructure projects across the country, including transportation networks, highways, airports, and metro systems, are poised to bolster real estate growth, unlocking new markets and stimulating growth in peripheral areas. This makes luxury housing an attractive investment option.
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Ans 1. Mumbai Ranks at 37th Place Globally in Price Growth in Luxury Housing- Key Points. Through the report, the consultant has analyzed prime property price performances in 100 cities, and sun and ski locations globally.
Ans 2. A total of 1,53,870 houses were sold in MMR in 2023 as against 1,09,730 units sold in 2022. The Mumbai Metropolitan Region also saw the highest completion of housing units in 2023 at 1,43,500 units.
Ans 3. Mumbai is often referred to as the "City of Dreams". It is known for its bustling streets, vibrant culture, and incredible opportunities. This city has something for everyone, including some of India's most luxurious and high-end localities.
Ans 4. Amitabh Bachchan owns 5 bungalows in Mumbai- Jalsa, Pratiksha, Vatsa, Janak and a new bungalow behind Jalsa. Big B lives with his family in Jalsa which is located in Juhu. The house is also one of the costliest properties in Mumbai. Big B's house Pratiksha was owned by his parents.
Ans 5. Godrej Industries Pvt. The straightforward answer to the question of who owns most property in Mumbai would be Godrej Industries. This group stands as the largest private landowner in Mumbai today, boasting holdings of nearly 2,000 acres of mangroves located at Vikhroli, east of the Eastern Express Highway.