Luxury Housing Sales Surge 10% in Q1 2024 Across Major Indian Cities
Sales of luxury residential units, priced at Rs 4 crore and above, witnessed a 10% year-over-year increase across seven major Indian cities during the first quarter of 2024, according to CBRE South Asia’s India Market Monitor Q1 2024 report. This segment constituted approximately 5% of the total residential unit sales, translating to 4,140 units sold between January and March 2024, compared to 3,780 units in the same period the previous year. New launches within the luxury segment also saw a substantial yearly increase of nearly 64% during this period.
City-Specific Performance
- Mumbai: Experienced a 15% year-over-year rise in luxury housing unit sales.
- Delhi-NCR: Witnessed a decline in sales, dropping from 1,880 to 1,150 units.
- Bengaluru: Saw sales plummet from 70 to a mere 10 units.
- Kolkata: Registered a decrease from 110 units sold to 70.
- Pune: Showcased a remarkable surge in sales, rising significantly from 150 to 700 units.
- Hyderabad: Experienced substantial growth, with sales increasing from 380 to 800 units.
Rapid Growth and Inventory Injection in Luxury Segment
The resurgence of India's luxury residential real estate market has been a key driver of the segment's rapid expansion, with approximately 45% of the total luxury housing stock being added in the past five years. This has fueled a compound annual growth rate (CAGR) of over 9% in major gateway cities since 2019. Mumbai continues to dominate the luxury landscape, holding over 40% of the nation’s total luxury inventory as of Q1 2024. This dominance is attributed to the city's appeal to high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), including top business executives and prominent figures from the entertainment industry. Prime locations in Mumbai, like Altamont Road, Nepean Sea Road, Worli, Prabhadevi, Juhu, and Bandra (West), commanded high capital values, with average property prices ranging from Rs 20 crore to upwards of Rs 60 crore, occasionally even surpassing Rs 100 crore.
Delhi-NCR and Hyderabad: Emerging Luxury Hubs
Delhi-NCR follows Mumbai, accounting for over 25% of the country's total luxury inventory in the first quarter of 2024. Similar to Mumbai, the luxury market in Delhi is concentrated in the southern part of the city, with areas like Amrita Shergill Marg, Golf Links, and Prithviraj Road seeing average prices between Rs 40 crore and Rs 60 crore. Gurgaon has emerged as a prominent luxury market within the region, fueled by the increased demand for gated communities during the COVID-19 pandemic. Average property values in areas like DLF Phase ½, Golf Course, and Golf Course Extension in Gurgaon range from Rs 10 crore to Rs 20 crore. Hyderabad, with its pro-business environment, currently holds nearly 10% of India's luxury housing inventory. The city has witnessed a surge in luxury apartment construction coupled with escalating demand. Areas such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Neopolis command average prices spanning from Rs 20 crore to over Rs 40 crore.
Overall Residential Market Performance
During the first quarter of 2024, overall residential sales across all price segments touched nearly 85,000 units, marking an 8% year-over-year increase. This robust demand prompted the development of around 80,000 new units during the same period. Mid-range projects (priced between Rs 45 lakh and Rs 1 crore) constituted 47% of the overall sales, followed by high-end (Rs 1 crore to Rs 2 crore) and affordable (up to Rs 45 lakh) segments. Pune, Mumbai, and Bengaluru together contributed roughly 65% of the total sales, while unit launches in Mumbai, Pune, and Hyderabad represented approximately 69% of the overall new launches in Q1 2024.
"The Indian luxury real estate sector has strong fundamentals for sustained growth, supported by consistent increases in household income and consumer spending power. These factors are expected to create a segment of discerning buyers who value quality, financial prudence, and a desire for an elevated living experience," said Anshuman Magazine, CBRE’s chairman and CEO for India, South-East Asia, the Middle East, and Africa.