Luxury Housing Sales Up 27%, Delhi-NCR, Mumbai Hyderabad Named Major Markets

Sales of luxury housing units, priced at Rs 4 crore and above, surged by 27% to approximately 8,500 units during the January-June period across seven major cities, driven by high demand, according to CBRE, a real estate consultant.

In its report 'India Market Monitor Q2 2024' released on Thursday, CBRE said that India's luxury housing segment maintained strong sales momentum, registering a 27% annual increase in January-June 2024.

"Total sales of luxury units during the January-June period stood at around 8,500 compared to about 6,700 units during the same period last year," the consultant said.

Delhi-NCR, Mumbai, and Hyderabad were the top markets, collectively accounting for approximately 84% of luxury housing sales across the top seven cities. Pune also saw significant growth in luxury sales, with demand increasing nearly six times on an annual basis to reach approximately 1,100 units.

Sales in Delhi-NCR rose 14% annually to 3,300 units. Mumbai saw a growth of 14% to 2,500 units.

Housing sales in Hyderabad stood at 1,300 units, up 44% annually.

Pune registered sales of 1,100 units, marking a 450% year-on-year increase during this period.

In Chennai and Kolkata, sales of luxury housing units, each priced at Rs 4 crore and above, remained flat at 100 units and 200 units, respectively.

CBRE data showed that Bengaluru did not witness any sale in this price category during the January-June 2024 period as against 200 units in the year-ago period.

Anshuman Magazine, Chairman & Cheif Executive Officer - India, South-East Asia, the Middle East & Africa at CBRE, said, "We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable home buying sentiments, festive season promotions, and significant land acquisitions by developers."

These elements are expected to balance supply and demand dynamics and invigorate market activity, he added.

"The luxury housing segment, particularly for properties priced at Rs. 4 crore and above, is set to thrive as buyers seek homes that align with their affluent lifestyles. Capital value growth in this segment is projected to stabilise, with an increasing focus on core project fundamentals such as quality, location, and access to essential infrastructure," Magazine said.

Moreover, he said the ongoing mega infrastructure projects across the country, including transportation networks, highways, airports and metro systems, are poised to bolster real estate growth.

"These developments are likely to unlock new markets, establish satellite cities, and stimulate growth in peripheral areas, making luxury housing an attractive investment," Magazine said.

(With Inputs From PTI.)