Mumbai is luxury market leader, over 1300 flats sold above Rs 4 cr in Q1

India's luxury housing market is thriving,  as it recorded a 10 per cent year-on-year (Y-o-Y) growth in sales during the first quarter (Q1) of 2024, according to a report by CBRE, a leading real estate consulting firm. This growth comes amidst a strong overall residential market performance with nearly 85,000 units sold in Q1 2024, reflecting an 8 per cent increase compared to the same period last year.

Point to note: The luxury segment housing units are priced upwards of Rs 4 crore and Mumbai  recorded the highest number of  luxury sales with more than 1,300 luxury units in Q1 2024. There has also been a 64 per cent Y-o-Y increase in new launches of luxury segment units during Jan-Mar ’24.

Mumbai emerges as luxury market leader 

Mumbai emerged as the top performer in the luxury segment, witnessing a 15% year on year surge in sales. The city boasts over 40 per cent of the country's total luxury housing inventory, attracting high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) with its premium locations like Altamount Road, Nepean Sea Road, Bandra and Worli.  These areas command high prices, with average property values ranging from Rs 20 crore to over Rs  60 crore.Occasionally, apartments priced above Rs 100 crore are also recorded.

Delhi-NCR follows

Delhi-NCR followed closely behind Mumbai, accounting for over 25 per cent of the luxury inventory.  Luxury properties in Delhi are concentrated in South Delhi, with areas like Amrita Shergill Marg and Prithviraj Road witnessing similar price points to Mumbai. Gurgaon, within the NCR region, has also emerged as a prominent luxury market, particularly for gated communities. Locations such as DLF Phase I/II, Golf Course, and Golf Course Extension typically witness

average ticket sizes between Rs 10 to Rs 20 crore.

Hyderabad claims third spot 

Hyderabad, with its pro-business environment, claims the third spot with a nearly 10% share of the national luxury inventory. The city has seen a rise in luxury apartments and strong demand, with areas like Jubilee Hills and Hitech City reporting average ticket sizes ranging from Rs 20 crore to over Rs 40 crore.

"The resurgence in India’s luxury residential real estate has spurred robust growth, as about 45% of the overall luxury stock was injected in the last five years alone. The segment has also grown at a CAGR of over 9% since 2019 across the gateway cities," noted the report.

"The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterized by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience," said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

Properties priced between Rs 45 lakh and Rs 1 crore biggest drivers of realty sales 

The positive trend extends beyond the luxury segment. The overall residential market witnessed a healthy 8% Y-o-Y growth in sales during Q1 2024.  Mid-segment properties, priced between Rs 45 lakh and Rs 1 crore, were the biggest driver of sales, accounting for nearly half (47%) of all transactions.  Cities like Pune, Mumbai, and Bangalore were the major contributors to national sales figures.  In terms of new launches, developers across India added nearly 80,000 units to the market in Q1, with Mumbai, Pune, and Hyderabad accounting for almost 69% of those launches.

Sustainability takes center stage

Looking ahead, the report highlights a growing emphasis on sustainability within the luxury real estate segment.  Discerning buyers are prioritizing not just quality and location, but also features like energy-efficient appliances, rainwater harvesting systems, and renewable energy sources. Developers are taking note and integrating these features to cater to the evolving demands of luxury homebuyers.