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The luxury real estate market in India has experienced contrasting trends in major cities during the first quarter of 2024, according to the latest findings by CBRE South Asia Pvt. Ltd.
While Delhi-NCR, Kolkata and Bangalore witnessed a significant decline in luxury segment housing, other major cities such as Mumbai, Pune, Hyderabad and Chennai recorded a surge in the same segment. During the period from Q1 2023 to Q1 2024, Delhi-NCR saw a 38.83 per cent decline in luxury segment housing, while Kolkata and Bangalore recorded a 36.63 per cent and 85.71 per cent decrease respectively. On the other hand, Pune witnessed a substantial 78.5 per cent increase. Hyderabad experienced a notable 52.5 per cent rise, Chennai saw a 33.33 per cent increase and Mumbai recorded a 13.5 per cent growth in the luxury segment housing market CBRE's report 'India Market Monitor Q1 2024', revealed that the luxury segment housing (units priced at Rs 4 crore and above) recorded a 10 per cent year-on-year sales growth during January to March 2024. This segment accounted for about 5 per cent of the overall residential unit sales during this period, with a significant increase of nearly 64 per cent year-on-year in new luxury segment unit launches. Mumbai maintains its stronghold as the leading luxury segment market, contributing over 40 per cent of the country's total luxury inventory in Jan-Mar '24. The city, known for its attraction to high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), boasts premium locations such as Altamount Road, Nepean Sea Road, and Bandra (West), where average ticket sizes range from INR 20 to 60+ crore. Delhi-NCR follows closely, representing over 25 per cent of the luxury inventory, with luxury properties concentrated in areas like Golf Links and Prithviraj Road, typically priced between Rs 40 to 60+ crore. Gurgaon has emerged as a luxury market within the region, with areas such as DLF Phase I/II witnessing ticket sizes between Rs 10 to 20 crore. Hyderabad claims the third spot with nearly 10 per cent share of the country's luxury inventory, experiencing growth driven by a pro-business environment. Areas like Jubilee Hills and Banjara Hills report average ticket sizes ranging from Rs 20 to over 40 crore. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, commented, "The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterized by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience." He added, "Going forward, capitalizing on the positive sales trend, developers nationwide are ramping up activity and are expected to launch new units in the segment. Furthermore, Sustainability has become a critical differentiator in real estate development, with an increasing emphasis on constructing eco-friendly and energy-efficient dwellings." "As buyers in this category tend to be more aware of and demanding such features, developers are integrating features such as energy-efficient appliances, rainwater harvesting systems, indoor air quality control, and renewable energy sources to be able to tick the boxes when catering to the demand for luxury homes", he further said. In the overall residential sector, sales across categories reached nearly 85,000 units in Jan-Mar '24, marking an 8 per cent year-on-year growth. Mid-end projects emerged as the leading category, driving sales, followed by high-end and affordable projects. Pune, Mumbai, and Bangalore collectively accounted for about 65 per cent of the total sales, while unit launches in Mumbai, Pune, and Hyderabad dominated the market, accounting for almost 69 per cent share during the period. (ANI)
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