Sale of homes priced above Rs 4 cr comprises 5% of total, says report

Mumbai top in the sale of such homes in March quarter, demand falls in Delhi NCR from a year ago

Sales of luxury homes, priced at Rs 4 crore and above, grew 10 per cent in the quarter that ended on March 31 compared to the year before, said a real estate consultancy firm on Thursday.

According to CBRE's ‘India Market Monitor Q1 2024’ report, 4,140 luxury homes were sold between January and March 2024. As many as 3,780 were sold during the same period last year.

Such sales have grown for at least the last two years. In 2023, sales jumped 75 per cent at 12,935 units. In 2023, luxury homes’ share in total sales doubled to 4 per cent from 2 per cent the year before.

At the end of March 2024, their share has risen to 5 per cent.

Mumbai led in the March quarter by selling 1,330 luxury homes: 15 per cent higher than 1,150 units sold last year. It was followed by Delhi National Capital Region (NCR) at 1,150 units and Hyderabad at 800 units.

While Hyderabad saw a twofold jump in luxury home sales, demand for such properties in Delhi NCR fell from 1,880 units in the same quarter last year.

Residential property sales across categories reached 85,000 units in January-March, growing 8 per cent year-on-year.

The largest sales were in the mid-end segment homes (priced between Rs 45 lakh to 1 crore) which compised 47 per cent share in total sales. It was followed by high-end (Rs 1 – 2 crore) and affordable projects (up to Rs 45 lakh). Luxury home sales ranked fifth.

Pune, Mumbai, and Bangalore cumulatively accounted for about 65 per cent of the total sales.

The report said the demand has also led developers to focus on luxury homes. In the March quarter, there was a 64 per cent increase in new launches of luxury segment units.

"The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power," said Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, Middle East & Africa) at CBRE.

"These factors are anticipated to cultivate a segment characterized by discerning buyers prioritising quality, financial prudence, and a desire for an elevated living experience."