Mumbai, Delhi Lead India's 1.5 Times Growth In Luxury Housing Market

India's luxury real estate market saw an growth of about 1.5 times with Mumbai and Delhi leading the pack.

The total sales value of luxury homes priced over Rs 50 crore increased 1.5 times year-on-year to Rs 4,319 crore in 2023, according to a report by JLL India.

In 2023, at least 45 luxury homes were sold, compared to 29 sold in the previous year, reflects a surge in the number of transactions along with the sales value, the note said.

Mumbai led with sales of 29 luxury homes for a combined value of Rs 3,031 crore followed by Delhi NCR with 12 luxury homes sold at Rs 1,043 crore.

Apartments accounted for 58% of the total luxury homes sold in India, while bungalows comprised the remaining 42%, the report said.

Malabar Hill and Worli micro markets remained the hottest areas in Mumbai, while Golf Links and Vasant Vihar remained the top spots for luxury home sales in Delhi NCR.

This upward trajectory in sales reflects the strong economic fundamentals of the luxury real estate market and the rising demand for distinctive living experiences among affluent home buyers, it said.

"The interest for such properties is expected to strengthen in future as there is both the aspiration for high-end bespoke living and the confidence of affluent buyers in the long-term value that these properties hold," Samantak Das, chief economist and head research & REIS, India, JLL said in the report.

Luxury houses that are priced over Rs 4 crore, recorded a 75% year-on-year growth in sales in 2023, according to a Feb. 14 report by CBRE.

Delhi-NCR recorded the highest surge registering over two-fold increase, year-on-year, followed by Pune, Hyderabad, and Mumbai.