The sale of luxury homes priced at INR 4 crore and above has surged by 27% in the first half of the current year. This marked increase, as highlighted in the latest report by real estate consultancy CBRE, underscores the resilience and growing demand within the high-end residential market despite broader economic fluctuations.
According to CBRE’s findings, the luxury housing segment witnessed substantial growth, with approximately 8,500 units sold across the country in comparison to nearly 6,700 units during the same period last year. The surge in sales was predominantly driven by key metropolitan areas such as Delhi-NCR, Mumbai, and Hyderabad, which collectively accounted for nearly 84% of total luxury home transactions across India’s top seven cities. Delhi-NCR recorded a notable 14% increase in luxury home sales, reaching 3,300 units, while Mumbai mirrored this growth with 2,500 units sold, also reflecting a 14% rise year-on-year.
Hyderabad emerged as a standout performer with a remarkable 44% annual surge, achieving sales of 1,300 luxury units. Pune, meanwhile, experienced an exceptional year-on-year growth of 450%, amounting to 1,100 luxury units sold during the period under review. The surge in luxury housing sales can be attributed to several factors including pent-up demand, favourable financing options, and a renewed preference for larger, more premium residences amidst changing lifestyle preferences influenced by the ongoing pandemic.
Experts suggest that the spike in luxury home sales underscores a shift towards quality living and increased investment in high-end residential properties among affluent buyers. This trend is bolstered by the perception of real estate as a stable and appreciating asset class, particularly amidst volatile financial markets. The outlook for India’s luxury housing market remains optimistic, supported by sustained economic recovery, urbanisation trends, and evolving consumer preferences for luxury and branded residences. However, analysts caution that continued monitoring of market dynamics, including pricing trends and regulatory developments, will be crucial for both developers and investors navigating this burgeoning segment of the real estate landscape.
