Luxury Housing Sales in India See 97% YoY Jump During January-September 2023: Report

Sales of luxury houses in the top-7 cities in India, comprising units priced at Rs 4 crore and above, jumped 97 per cent year-on-year (YoY) to about 9,200 units during January-September 2023, according to a report by real estate consultancy firm CBRE South Asia. It said Delhi-NCR, Mumbai, and Hyderabad accounted for nearly 90 per cent of the total sales.

The luxury housing sales had stood at 4,700 units during the corresponding period last year.

“Among the leading cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the top-3 markets dominating sales, cumulatively accounting for nearly 90 per cent of the total luxury housing sales across the top-seven cities. Delhi-NCR topped with a share of about 37 per cent. This was followed by Mumbai, Hyderabad, and Pune, accounting for approximately 35 per cent, 18 per cent and 4 per cent, respectively,” according to the CBRE report, titled ‘India Market Monitor Q3 2023’.

The top-7 cities in the country are Delhi-NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad and Chennai.

It said the luxury housing segment in India comprising units priced at Rs 4 crore and above maintained strong sales momentum, registering a 97 per cent YoY increase in the January-September 2023 period. Total sales of luxury units during the January-September 2023 period stood at about 9,200 compared to 4,700 units during the same period last year.

“A similar trend prevailed during the July-September 2023 quarter in the luxury housing segment across the top-7 seven cities, registering a 19 per cent Y-o-Y increase in sales. The quarter witnessed total sales of approximately 2,400 units, compared to about 2,000 units during the same quarter in 2022. Among the cities, Mumbai, Hyderabad and Delhi-NCR emerged as the top markets leading sales during the quarter,” the report said.

‘Festive Season 2023 To Record Highest Residential Sales in 3 Years’

Building on the robust sales performance witnessed throughout the first nine months of 2023, the housing market is primed for further growth with the ongoing festive season, according to the report. it said 2023 festive housing sales are set to break a 3-year record, exceeding the 150,000-unit mark.

Overall residential sales across price categories exceeded 230,000 units during January-September 2023, registering a Y-o-Y growth of about 5 per cent. Sustained momentum in demand led developers to launch over 220,000 new housing units during the same period.

In January-September 2023, residential sales were dominated by mid-end projects accounting for almost half of the total sales, followed by high-end and affordable projects. Mumbai, Pune and Bengaluru cumulatively accounted for a 62 per cent share in sales during the January-September 2023 period.

On the other hand, Mumbai, Pune, and Hyderabad dominated the new launches during the first nine months of the year, capturing a significant cumulative share of about 64 per cent.

Notably, over 80,000 residential units were sold during the July-September 2023 quarter, while new unit launches stood at 72,000 during the same period. Mumbai, Hyderabad and Pune dominated the market for apartment launches, having a cumulative share of 63 per cent.

Anshuman Magazine, chairman & CEO (India, South-East Asia, Middle East & Africa) of CBRE, said, “We anticipate the overall housing market to be further bolstered by the ongoing festive season in the coming months of 2023. With the pause in the interest rate cycle, incentives and schemes offered by developers in the festive season are likely to boost sales further.”

He added that the October-December 2023 quarter is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts. As the residential cycle matures amidst inflationary pressures, we have witnessed increasing demand in the mid-end and premium categories.

“Conversely, the premium and luxury segment is expected to emerge as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties,” he said.

Rahul Singla, director of Mapsko Group, said a relentless desire for homeownership, propelled by increasing incomes, has forged a durable and vigorous housing demand, a trend poised to endure well into the foreseeable future. “Within the realm of luxury housing, an escalating desire for elevated living experiences signals an unwavering demand for premium properties.”

He added that as the year progresses, the supply of luxury homes is strategically aligning to meet this burgeoning demand, orchestrating a harmonious equilibrium within the high-end real estate market.

Vineet Dawar, senior vice-president (sales & strategy) of Elan Group, said, “Indian real estate has always been a market brimming with abundant opportunities for NRI investors. The market growth has been strengthened by the growing interest of high networth individuals (HNIs) and non-resident Indians (NRIs) in luxury housing due to the high-end infrastructural changes giving them more confidence in investing in large ticket-size projects of the nation.”

He added that over the past few years, there has been a noticeable rise in the number of NRIs seeking to purchase homes in India, leading to a surge in demand. Their contributions have reshaped market dynamics and underscored the growing influence of global investments in India’s real estate sector.