Hyderabad / New Delhi, Jan 16 (FN Bureau) India’s luxury housing segment (units priced at INR 4 crore and above) recorded a 53 percent Y-o-Y sales growth in CY 2024 across top seven cities- Delhi-NCR, Mumbai, Pune, Bangalore, Kolkata, Hyderabad and Chennai, according to the findings of its report, ‘India Market Monitor Q4 2024 – Residential’ released by CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm. The rising demand for luxury housing is largely driven by a growing number of affluent buyers seeking spacious homes with premium amenities that cater to their multifaceted lifestyles, the report stated. This demand has been bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.
The segment also recorded significant unit launches, registering 52 per cent Y-o-Y growth during the year, the report stated. In CY 2024, total luxury housing sales touched 19,700 units, recording 53 per cent Y-o-Y growth. Delhi-NCR, Mumbai, and Hyderabad emerged as the key markets, collectively contributing over 90 percent of the luxury housing unit sales across the top seven cities, it revealed. Delhi-NCR led the market, reflecting a strong 90 per cent Y-o-Y growth, followed by Mumbai, recording a 32 per cent Y-o-Y increase. Moreover, Pune witnessed significant demand in the luxury housing segment, recording 825 units’ sales in 2024. The number of new launches in 2024 in the luxury segment reached 24,180, recording a 52 percent Y-o-Y increase. In line with the trajectory of luxury housing unit sales, Delhi-NCR led the new launches, followed by Mumbai and Hyderabad. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023. A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast.
India’s residential real estate market demonstrated positive activity throughout CY 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This momentum pushed annual sales to surpass Rs300,000 housing units for the second year in a row. To meet the rising demand, developers launched over 280,000 new residential units during the year. Mid-segment projects dominated sales with a 40% share, followed by high-end and affordable segments. Together, Mumbai, Pune, and Bengaluru accounted for Rs64% of the total sales in 2024, underscoring their significance in the residential market. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, ” We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market. However, with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence”.