Luxury housing sales are experiencing a surge in demand, with homes priced at Rs 4 crore and above seeing a significant increase in sales. According to CBRE, a total of 3,100 units were sold in the luxury housing segment during the April-June period across seven major cities, compared to 1,400 units sold during the same period last year.
One city that has seen a remarkable increase in luxury housing sales is Hyderabad, with sales jumping 20-fold to 1,000 units in the second quarter of this year from 50 units in the corresponding period last year. Delhi-NCR also witnessed a three-fold rise in sales, with 1,050 units sold compared to 350 units in the previous year.
In Pune, sales of luxury homes reached 150 units in the April-June period this year, compared to none in the year-ago period. Demand remained flat in Chennai and Kolkata, with 50 units sold in each city. Mumbai, on the other hand, experienced a slight decline in sales, with 750 units sold in the second quarter of this year compared to 800 units last year. Bengaluru saw the biggest decline in demand, with only 50 units sold in April-June, down from 100 units in the same period last year.
The strong demand for luxury housing reflects the positive momentum in the market. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa of CBRE, highlighted that the surge in sales is a result of factors such as a healthy supply pipeline, the approaching festive season, and stabilizing mortgage rates. He further predicted a stronger second half of 2023 in the residential market.
Aakash Ohri, DLF Group Executive Director & Chief Business Officer, emphasized that the luxury housing sector is expected to sustain its sales momentum due to rapid urbanization, improved affordability, and aspirational needs. He singled out Gurugram in the Delhi-NCR region as a preferred choice for luxury homebuyers, with a large presence of High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) as well as a significant rise in the number of affluent millennials.
Mohit Jain, Managing Director of Krisumi Corporation, attributed the success of the luxury housing segment to the high aspirations among young homebuyers and changing preferences. He also mentioned the limited supply of luxury homes as a significant factor contributing to the surge in sales.
With the demand for luxury housing on the rise, it is clear that this segment of the market is thriving. The positive growth in sales indicates a strong appetite for upscale homes, driven by various factors including improved affordability, aspirational needs, and limited supply. As the housing market continues to evolve, it will be interesting to see how the luxury housing sector progresses in the coming months.
