 "Representative image of a luxury house Photo: Shutterstock")
The sale of luxury homes in India rose 130 per cent in the first half of 2023 compared to the corresponding year last year, according to data released by real estate consultancy CBRE South Asia on Thursday. A total of 6,900 luxury homes, priced at Rs 4 crore and above, were sold between January and June this year, as compared to 3,000 in 2022.
According to CBRE, the surge in demand for luxury homes was primarily driven by a growing preference for enhanced amenities and more spacious living areas.
"Moreover, it is the aspirational class that has been on an upward trend and driving luxury sales. Besides, the rise in non-resident Indians (NRI) investments in the Indian real estate market has significantly contributed to the heightened demand for luxury properties," it said.
In absolute terms, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets together, accounting for nearly 90 per cent of the total luxury housing sales across the top seven Indian cities.
The sales of these homes were the highest in Delhi-NCR at 2,900. It was followed by 1,900 in Mumbai and 1,400 in Hyderabad.
In terms of percentage, Hyderabad recorded the highest increase in sales on a year-on-year (YoY) basis, with nearly 14-fold growth compared to 100 luxury homes sold between January and June last year.
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It was followed by a nearly six-fold increase in sales in Pune from 50 units to 300 units in 2023. Delhi-NCR saw a three-fold jump in Delhi-NCR from 950 units last year.
Quarterly sales up 121%
In the April-June quarter, the luxury housing segment registered a 121 per cent YoY increase in sales. The quarter saw total sales of 3,100 luxury homes compared to 1,400 units during the same quarter last year.
Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets during the quarter. Delhi-NCR sales jumped nearly threefold from 350 units in 2022 to 1,050 units this year. Hyderabad saw a 20-fold jump in sales to 1,000 units.
Interestingly, Mumbai and Bangalore saw a fall in quarter-on-quarter (QoQ) numbers from 800 units to 750 units and 100 units to 50 units, respectively. The sales in Kolkata and Chennai remained the same at 50 units.
"Looking ahead, we anticipate a stronger second half of 2023 in the residential market, supported by factors such as a healthy supply pipeline, the approaching festive season, and stabilizing mortgage rates," said Anshuman Magazine, chairman and chief executive officer at CBRE for India, South-East Asia, West Asia and Africa.
