Luxury House Sales in India Soar by 27% in First Half of 2024
Delhi-NCR, Mumbai, and Hyderabad Lead the Market
The sale of luxury houses in India increased by 27% during the January to June 2024 period compared to the same period last year, according to a report by CBRE South Asia, a real estate consulting firm. The report highlighted that the luxury house segment, priced at Rs 4 crore and above, saw a total sale of around 8,500 units during this period, up from 6,700 units last year.
Leading Cities in Luxury House Sales
Delhi-NCR, Mumbai, and Hyderabad emerged as the top markets, accounting for nearly 84% of the total luxury housing sales across the top seven cities. Pune also recorded a significant increase in luxury sales, with demand growing nearly six-fold to around 1,100 units.
| City | Units Sold | Year-on-Year Growth |
|---|---|---|
| Delhi-NCR | 3,300 | 13.8% |
| Mumbai | 2,500 | 13.6% |
| Hyderabad | 1,300 | 44% |
| Pune | 1,100 | 450% |
Quarterly Trends
During the April to June 2024 quarter, the luxury housing segment saw a 40.1% year-on-year increase in sales, with around 4,410 units sold compared to 3,150 units in the same quarter last year. Kolkata also experienced a notable two-fold increase in luxury residential sales.
Factors Driving Demand
The surge in demand for luxury housing is driven by affluent buyers seeking enhanced amenities and spacious living areas. Anshuman Magazine, Chairman & CEO of CBRE India, South-East Asia, Middle East & Africa, stated that the market is expected to maintain strong momentum for the rest of the year, driven by favorable home-buying sentiments, festive season promotions, and significant land acquisitions by developers.
Additionally, the rise in NRI and astute investors in the Indian real estate market has significantly contributed to the heightened demand for luxury properties. The report noted that this trend is expected to persist, reflecting the evolving expectations of modern homebuyers who are now more discerning and well-informed about developer reputation and project fundamentals.
Overall Market Performance
Overall, the Indian housing market maintained robust momentum during the January to June 2024 period, with a total of 156,000 units sold and over 153,000 new units launched across all categories. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for 63% of total residential sales in India during this period. In the April to June 2024 quarter, sales of around 70,100 units and over 69,600 new unit launches were recorded, with Mumbai, Pune, and Delhi-NCR dominating the market for apartment launches and sales.
Doubts Revealed
Luxury House -: A luxury house is a very expensive and fancy home that has special features like big rooms, beautiful designs, and high-quality materials.
27% -: 27% means that if you had 100 luxury houses sold last year, this year you have 127 houses sold. It’s a way to show how much more or less something has happened.
First Half of 2024 -: The first half of 2024 means the months from January to June in the year 2024.
Delhi-NCR -: Delhi-NCR stands for Delhi National Capital Region. It includes Delhi and nearby cities like Gurgaon, Noida, and Ghaziabad.
Mumbai -: Mumbai is a big city in India, known as the financial capital of the country. It is located in the state of Maharashtra.
Hyderabad -: Hyderabad is a large city in India, known for its technology industry and historical sites. It is the capital of the state of Telangana.
CBRE South Asia -: CBRE South Asia is a company that provides advice and information about real estate, which includes buying and selling houses and buildings.
Pune -: Pune is a city in the state of Maharashtra, India. It is known for its educational institutions and growing IT industry.
Six-fold increase -: A six-fold increase means something has become six times bigger. For example, if 10 houses were sold last year, 60 houses were sold this year.
April to June 2024 quarter -: This means the three months from April to June in the year 2024.
Year-on-year -: Year-on-year means comparing something from one year to the same time in the next year. For example, comparing sales in April 2023 to sales in April 2024.
Affluent buyers -: Affluent buyers are people who have a lot of money and can afford to buy expensive things like luxury houses.
Enhanced amenities -: Enhanced amenities are special features or services that make living in a house more comfortable and enjoyable, like swimming pools, gyms, or beautiful gardens.
Spacious living areas -: Spacious living areas mean big rooms and lots of space inside the house, so people have more room to move around and keep their things.
