Rs 4 crore+ luxury home sales rise 53% as upper-middle class drives demand

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The demand for luxury homes in India, particularly those priced at Rs 4 crore and above, saw a remarkable surge in 2024, with sales rising by 53% across seven major cities. According to data from real estate consultancy firm CBRE, the total number of luxury housing units sold last year stood at 19,700, a significant increase from the 12,895 units sold in 2023. 

 

Delhi-NCR Leads the Pack

 

The Delhi-NCR region emerged as the largest market for luxury homes, recording a substantial rise in sales. In 2024, the region saw 10,500 units sold, compared to just 5,525 units in the previous year. 

 

This sharp uptick highlights the growing demand for high-end real estate in the national capital region, driven by both affluent buyers and NRIs (Non-Resident Indians) seeking prime properties.

 

 "We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters," said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE. He added that cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards more upscale, high-end projects.

 

Aakash Ohri, Joint Managing Director and Chief Business Officer of DLF Home Developers, said the surge in demand reflects a fundamental shift in people's perception of homeownership. "The value of having a place to call home has become more apparent," Ohri said, emphasizing that the luxury housing market in Delhi-NCR has undergone an impressive transformation.

 

The increasing demand for large, opulent homes with modern amenities, coupled with prime locations, is a trend that has been mirrored across various regions of India.

 

Mumbai, a key player in the luxury housing market, saw an increase in sales, with 5,500 luxury units sold in 2024, compared to 4,200 units the previous year. Similarly, the luxury home market in Pune witnessed significant growth, with sales rising to 825 units from 400 units. On the other hand, Bengaluru recorded a slight decline, with sales falling to 50 units from 265 units.

 

In Kolkata, sales of luxury homes grew to 530 units from 310, while Hyderabad saw a steady increase, with sales reaching 2,100 units compared to 2,030 units in 2023. In Chennai, sales rose to 275 units in 2024, up from 165 units the year before.

 

Affluent Buyers and NRIs Drive Demand

 

The rising demand for luxury properties has been fueled by an increasing number of affluent buyers seeking spacious homes with premium amenities. CBRE attributes much of the surge to the aspirations of India’s expanding upper-middle class, as well as a significant rise in interest from NRIs who view Indian real estate as a lucrative investment opportunity.

 

Akash Khurana, President and CEO of Krisumi Corporation, pointed out that the luxury housing segment is growing rapidly, driven by the increasing demand for high-end homes. "The sharp rise in sales of premium properties in the NCR region reflects its potential for long-term growth and investment," Khurana said.

 

With the growing trend of homeownership in the luxury segment, cities like Delhi-NCR, Mumbai, and Pune are likely to remain the focal points of India's luxury real estate market in the foreseeable future.

 

"As price points adjust, we expect sustained demand for high-end and premium residential categories, specifically those priced between Rs 1.5 to 2 crore and Rs 2 to 4 crore. In addition, markets traditionally dominated by the mid-end housing segment, such as Noida, Bengaluru, Pune, and Chennai, would continue to witness the addition of quality supply, supported by Residential demand for high-quality housing," noted the report.

 

Key Insights from CBRE's India Market Monitor Q4 2024

• 7% Quarter-over-quarter (Q-o-Q) growth in housing unit sales in Q4 2024.
• 40% Share of mid-end projects in total sales in 2024, followed by high-end and affordable projects.
• 66%: Total share of Mumbai, Pune, and Delhi-NCR in sales during Q4 2024.
• 63%: Combined share of Mumbai, Pune, and Hyderabad in unit launches in 2024.
• 64%: Cumulative share of Mumbai, Pune, and Bengaluru in sales in 2024.
• 60%: Cumulative share of Mumbai, Pune, and Bengaluru in unit launches in Q4 2024.
• 10%: Growth in new unit launches on a Q-o-Q basis in Q4 2024.
• 302,900: Total residential sales in India in 2024.
• 281,600: Total residential unit launches in India in 2024.
• 75,300: Unit launches in Q4 2024.
• 67,800: Sales in Q4 2024.

 

Segment Distribution:

• Premium Housing: 28% of sales in Q4 2024.
• Luxury Housing: 9% of sales in Q4 2024.
• Affordable/Budget Housing: 7% of sales in Q4 2024.
• Mid-End Housing: 40% of sales in Q4 2024.
• High-End Housing: 36% of sales in Q4 2024.

 

Regional Insights:

 

• Mumbai: 23,100 units sold in 2024, contributing 31% of Q4 sales.
• Delhi-NCR: 10,200 units sold in 2024, contributing 13% of Q4 sales.
• Pune: 16,250 units sold in 2024, contributing 19% of Q4 sales.
• Bengaluru: 8,900 units sold in 2024, contributing 13% of Q4 sales.
• Hyderabad: 2,100 units sold in 2024, contributing 13% of Q4 sales.