Luxury home sales surge 37.8% across top seven cities in Jan-Sept 2024

Overall, about 225,000 units were sold across the top seven Indian cities during the period, says CBRE

Luxury home sales recorded a surge of 37.8 per cent year-on-year (Y-o-Y) across the top seven Indian cities in the first nine months of 2024, according to a report by real estate advisory firm CBRE.

About 12,625 units priced at Rs 4 crore and more were sold compared to 9,160 units during the same period last year.

The top seven cities are Mumbai, Pune, Delhi-national capital region (NCR), Bengaluru, Chennai, Kolkata, and Hyderabad. Of these, Delhi-NCR, Mumbai, and Hyderabad together accounted for about 90 per cent of the sales. Delhi-NCR witnessed the highest sales, with 5,855 units being sold, with a staggering Y-o-Y increase of 72 per cent.

A similar trend was spotted during the third quarter of the calendar year 2024 (Q3CY24), as luxury home sales stood at 4,360, with an annual increase of 82 per cent.

The report attributed the surge to a growing preference among affluent buyers for enhanced amenities, more spacious living areas that complement their multifaceted lifestyles, increasing aspirational class, and a rise in non-resident Indian (NRI) and astute domestic investors in the Indian real estate market.

Anshuman Magazine, chairman and chief executive officer, India, South-East Asia, Middle East, and Africa, CBRE, said, “Following strong performance in the first half of 2024 and the seasonal boost during festivals, we expect sales and new launches to exceed 300,000 units for the second consecutive year.” However, Magazine believes that the elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach. Property prices will likely be influenced by unsold inventory, project quality, and infrastructure access.

Additionally, about 225,000 units were sold across the top seven Indian cities between January and September, meaning about 5.61 per cent of the total sales were in the luxury segment. The share of mid-range projects (priced at Rs 45 lakhs to Rs 1 crore) in total sales for the first nine months of 2024 was about 44 per cent, followed by high-end (priced at Rs 1-2 crore) and affordable projects (priced at up to Rs 45 lakhs).