Houses priced over Rs 4 crore see 38% sales spike, led by Delhi-NCR, Mumbai

Delhi-NCR, Mumbai, and Hyderabad led the charge, contributing nearly 90 per cent of the luxury housing sales across India's top seven cities

India’s demand for luxury housing has surged, with sales in units priced at Rs 4 crore and above seeing a 37.8 per cent year-on-year rise during the first nine months of 2024, according to a report from real estate consultancy firm CBRE South Asia. The report titled ‘India Market Monitor Q3 2024 – Residential’, highlights the shift towards more spacious homes as affluent buyers look for enhanced amenities to suit their lifestyles.

Delhi-NCR, Mumbai, and Hyderabad led the charge, contributing nearly 90 per cent of the luxury housing sales among India’s top seven cities. The report also marked Pune as a growing market, with 810 units sold during the same period.

 

Total luxury unit sales between January and September 2024 reached around 12,625, a pronounced jump from last year’s 9,160 units sold during the same time.

City-wise sales figures
 

Luxury housing sales in major cities for the July to September 2024 quarter:

Delhi-NCR: 2,590 units (compared to 480 units in Q3 2023)

Mumbai: 1,280 units (compared to 1,040 units in Q3 2023)

Hyderabad: 200 units (compared to 630 units in Q3 2023)

Chennai: 150 units (compared to 75 units in Q3 2023)

Kolkata: 80 units (compared to 50 units in Q3 2023)

Bengaluru: 50 units (compared to 90 units in Q3 2023)

Pune: 12 units (compared to 27 units in Q3 2023)

[Source: ‘India Market Monitor Q3 2024 – Residential’, CBRE South Asia]

Delhi-NCR emerged as the frontrunner in luxury residential sales, recording an impressive 72 per cent year-on-year growth, with Mumbai following closely at 18 per cent.

Strong demand fuels growth

The report attributes the rise in sales to an increase in interest from non-resident Indians (NRIs) and domestic investors seeking premium properties. Buyers’ preferences have shifted towards high-end homes offered by leading developers, who are known for their financial stability and strong execution capabilities.

“India’s luxury housing market is witnessing robust growth, driven by strong performance in the first half of 2024 and the festive season boost,” said Anshuman Magazine, chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa. “We expect sales and new launches to exceed 300,000 units for the second consecutive year,” he said.

Across the broader housing market, sales of residential units in India remained robust, with over 225,000 units sold between January and September 2024. This steady demand prompted developers to introduce new projects, adding around 215,000 units to the market.

Mumbai, Pune, and Bengaluru dominated the housing market, collectively accounting for 64 per cent of total sales during this period. The luxury segment has continued to grow, with the share of mid-range projects representing 44 per cent of total sales, followed by high-end and affordable housing.

Sales and launches from July to September

In the third quarter of 2024, over 68,400 units were sold, and more than 62,000 new units were launched across the country. Mumbai, Pune, and Hyderabad accounted for 65 per cent of all apartment launches, with sales in these cities also taking a 65 per cent share of the total sales.

According to Magazine, there is a clear shift towards luxury developments even in traditionally mid-range markets like Noida, Bengaluru, Pune, and Chennai. “The demand for premium amenities is becoming a key factor in luxury housing projects,” he said.

Drop in new launches

Despite the rise, there are concerns about property prices in the current global economic climate. Anshuman Magazine noted that elevated capital values may lead to a more cautious approach from buyers. “Property prices will likely be influenced by unsold inventory, project quality, and access to infrastructure,” he explained.

The latest report by PropTiger.com indicates a 25 per cent drop in new housing property launches during the July to September 2024 period. The reduction is attributed to rising property prices, which have increased by 3 per cent to 50 per cent in some prime localities, slowing immediate buying decisions.