The unwavering demand for luxury housing since the pandemic has kicked off a spate of new launches in this category. Out of 1,16,220 units launched in Q3 2023 in the top-7 cities across various budget categories, about 27 per cent (nearly 31,180 units) were in the luxury category, according to a report by real estate consultancy firm Anarock.
This is the highest quarterly luxury supply entering the market in the past five years, it said.
Back in Q3 2018, the supply share of luxury housing was just 9 per cent — of about 52,120 units launched across budget segments then, just 4,590 were luxury homes. Q3 2023 saw Hyderabad churn out the highest new luxury supply — nearly 14,340 units — followed by MMR with 7,830 units. In terms of overall luxury share Hyderabad clocked in at 46 per cent and MMR at 25 per cent.
Prashant Thakur, regional director and head (research) at ANAROCK Group, said, “Developers have been bullish about the luxury homes segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top-7 cities. After the pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space.”
He added that ANAROCK’s most recent consumer sentiment survey also reflects this trend. In the pre-Covid edition of the survey (H1 2019), 9% respondents preferred luxury homes priced over Rs 1.5 crore while in the current edition of H1 2023, this share has risen to 16 per cent.
While luxury housing supply continues its bull-run, affordable housing (homes priced at or under Rs 40 lakh) has reduced further to 18 per cent in Q3 2023. Of about 1,16,220 affordable homes launched in the quarter, nearly 20,920 were in the affordable category.
In the corresponding period in 2018, this segment’s supply share was a whopping 42 per cent. Of about 52,120 units launched across the top-7 cities in Q3 2018 across various budget categories, around 21,900 units were in the affordable segment.
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. It sets the stage for a promising industry landscape, where aspiration and accommodation converge, offering enticing prospects for both discerning buyers and savvy investors.
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