India’s luxury housing sector has witnessed substantial growth in the first half of 2024 across major cities, except for Bengaluru, which has experienced a notable decline in sales, according to a recent report by CBRE South Asia, a leading real estate consulting firm.
The report highlights a national surge in luxury housing sales, with a significant 40.1% year-on-year increase in the April-June quarter compared to the same period last year. Across seven major cities, including Delhi-NCR, Mumbai, Pune, and Hyderabad, approximately 4,410 luxury units were sold in Q2 2024, up from 3,150 units in Q2 2023. The overall sales for the first half of the year rose to about 8,500 units, reflecting a notable uptick from 6,700 units in H1 2023. The report forecasts sustained momentum in India’s residential market, buoyed by favorable homebuying sentiments and strategic land acquisitions by developers. The mid and high-end housing segments are expected to continue driving growth, albeit with Bengaluru’s luxury sector needing a recovery strategy to align with national trends.
The rise in demand for luxury properties is attributed to the preferences of affluent buyers who seek enhanced amenities and spacious living areas. Moreover, the influx of NRIs and savvy investors in the Indian real estate market has significantly contributed to this growth trend. Tier-I developers have capitalized on this demand by launching high-end projects, consolidating their market presence and reinforcing expectations for sustained growth in this segment. However, Bengaluru emerged as an anomaly in this trend, recording a stark decline in luxury housing sales. The city saw only 10 units sold in H1 2024, a stark contrast to the 200 units sold during the same period in the previous year. Analysts attribute this downturn to a reduced supply of luxury housing options available during the first half of the year.
Responding to this anomaly, experts at CBRE South Asia expressed optimism about a potential rebound in luxury housing sales during the second half of 2024, particularly driven by festive season promotions and anticipated increases in supply. They underscored Bengaluru’s broader strength in the housing market, where the city remains among the top performers nationwide with robust residential sales totaling 1.56 lakh units in H1 2024, alongside over 1.53 lakh new units launched across various categories.
