India saw sale of luxury homes double in first 9 months this year: CBRE

CBRE said that the home sales in the festive season this year are expected to be the highest in three years

The sale of luxury homes in India, priced Rs 4 crore or above, rose 97 per cent in the first nine months of 2023 compared to the same period last year, a report by real estate consultancy CBRE released on Wednesday showed. In the top seven cities in India, 9,200 luxury homes were sold this year, compared to 4,700 units last year.

In its "India Market Monitor Q3 2023", the consultancy said that the home sales in the festive season this year are expected to be the highest in three years. As compared to 114,500 units in 2021 and 147,300 units in 2022, this year, home sales are expected to clock over 150,000 units.

The report added that Delhi-NCR, Mumbai, and Hyderabad emerged as the top three 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 37 per cent (3,409 units). It was followed by Mumbai, Hyderabad, and Pune, accounting for 35 per cent (3,252 units), 18 per cent (1,660 units) and 4 per cent (332 units) respectively.

The overall home sales across price categories exceeded 230,000 units during January-September, registering a growth of about 5 per cent as compared to last year. Home sales were dominated by mid-end projects, accounting for almost half of the total sales, followed by high-end and affordable projects.

The report added that affordability is no longer the sole decisive factor for home buyers as health & safety, sustainability, and integration of smart home technologies have also started to emerge as key to home purchase decisions.

"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," said Anshuman Magazine, chairman and chief executive officer (CEO) for India, South-East Asia, Middle East & Africa, CBRE.

"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 high net worth individuals (HNIs)and non-resident Indians (NRIs) seeking to safeguard their investments amid global macroeconomic uncertainties."