In April this year, when Godrej Properties launched a new project in Gurugram, Haryana, homes worth over Rs 3,000 crore were sold in just three days. This is a testament to the strong demand for luxury homes, and the trend is not just visible in Gurugram or the National Capital Region.
According to real estate consulting firm CBRE South Asia, sales of homes priced Rs 4 crore or more in the top seven cities in the country surged nearly 38 per cent from a year ago in the January-September period. During the nine months, 12,630 luxury homes were sold across Delhi/NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad and Chennai. In the same period a year ago, 9,165 homes were sold across these cities.
In terms of the quantum of luxury home sales, Delhi-NCR topped with sales of 5,855 units, a 72 per cent jump; Mumbai followed at 3,820 units, a growth of 18 per cent.
In the July-September quarter, 4,360 luxury homes were sold, compared with 2,390 units in the same period a year ago.
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Multiple reasons are driving this surge in luxury home sales across major markets. There is a growing preference among affluent buyers for enhanced amenities and more spacious living areas that complement their multifaceted lifestyles, pointed out CBRE. Separately, there is a growing aspirational class that is significantly driving demand for luxury properties. Another reason that has fueled luxury housing demand is the rise in NRI (non-resident Indians) and astute domestic investors.
"India's luxury housing market is witnessing significant growth, reflected in an increase in sales. Following strong performance in the first half of 2024 and the seasonal boost during festivals, we expect sales and new launches to exceed 3,00,000 units for the second consecutive year," pointed Anshuman Magazine, chairman and CEO - India, Southeast Asia, Middle East and Africa, CBRE.
He also foresees heightened demand in the high-end and premium segments (homes priced between Rs 1-2 crore and Rs 2-4 crore), with traditional mid-range markets like Noida, Bengaluru, Pune, and Chennai increasingly gravitating towards luxury developments.
Magazine, however, feels elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach.
Meanwhile, the just concluded nine-day auspicious Navratri period seems to have been very good for developers in the Mumbai market. Data from consultants Knight Frank showed that 5,199 properties were registered in Mumbai (an area under the city municipal corporation jurisdiction) between October 3 to October 11, up over 13 periods from the 4,594 registrations recorded in the year-ago Navratri period.
The daily average property registration rate increased to 578 units in the Navratri period this year, compared with 510 units registered during Navratri in 2023. In comparison, in September this year, Mumbai registered 9,111 property transactions, averaging 304 units a day, Knight Frank noted.
