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Luxury Home Sales Surge 37.8% in First Nine Months of 2024: CBRE

New Delhi / October 17, 2024: CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, announced the findings of its report: India Market Monitor Q3 2024 – Residential. According to the report, India’s luxury housing segment (units priced at Rs 4 crore and above) witnessed significant growth in sales, showing an approximate 37.8% Y-o-Y increase during the Jan-Sep’24 period.

Total sales of luxury units during the Jan-Sep’24 period stood at 12,625 compared to 9,160 units during the same period last year. Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, accounting for nearly 90% of the total luxury housing sales across the top seven cities. Further, Pune recorded a noteworthy increase in luxury sales activity, with 810 unit sales in the same period, a statement from CBRE South Asia said.

In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of 5,855 units, a 72% Y-o-Y increase, followed by Mumbai at 3,820 units, recording 18% Y-o-Y growth.

A similar trend prevailed during the Jul-Sep’24 quarter in the luxury housing segment across the top cities, registering an 82% Y-o-Y increase in sales. The quarter witnessed total sales of 4,360 luxury housing units compared to 2,390 units during the same quarter last year. During the quarter, cities including Delhi-NCR and Mumbai predominated housing sales, collectively accounting for about 90% of total sales. Moreover, Kolkata saw a notable 1.6-fold increase in luxury residential sales.

The sector maintained a strong performance in absolute numbers, with over 225,000 units sold during this period. The steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune, and Bengaluru collectively represented 64% of total sales between January and September 2024.

Boosted by strong market dominance, Mumbai, Pune, and Hyderabad collectively accounted for 64% of the cumulative unit launches from Jan-Sep’24. The share of mid-range projects in total sales for the first nine months of 2024 was about 44%, followed by high-end and affordable projects.

In the Jul-Sep’24 quarter, sales exceeded approximately 68,400 units, accompanied by over 62,000 new unit launches. The cumulative share of apartment launches for Mumbai, Pune, and Hyderabad stood at 65%. Similarly, the total share of sales for the same quarter attributed to Mumbai, Pune, and Bengaluru is also 65%. Mumbai topped the sales, holding a 32% share, followed by Pune with 18%, Bengaluru with 15%, and Delhi-NCR with 12%.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, ” 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 300,000 units for the second consecutive year. However, elevated capital values in an uncertain global economy may lead buyers to adopt a cautious approach. Property prices will likely be influenced by unsold inventory, project quality, and infrastructure access.

We also foresee heightened demand in the high-end and premium segments, with traditional mid-range markets like Noida, Bengaluru, Pune, and Chennai increasingly gravitating towards luxury developments. As the market shifts from bungalows to modern apartments and penthouses, the premiumization of amenities will be a key differentiator in luxury projects.”

Given the strong performance in H1 2024 and the sector’s tendency to peak during the festive season, we forecast both sales and new launches of residential units to remain elevated. However, high capital values amidst an uncertain global economic scenario may lead homebuyers to take a wait-and-watch approach to purchasing decisions.

In addition, as erstwhile price points realign, we expect the high-end / premium categories (Rs 1 to 2 crore and Rs 2 to 4 crore, respectively) to witness strong demand. Additionally, the traditional mid-end segment-dominated markets such as Noida, Bengaluru, Pune, and Chennai are expected to continue gravitating increasingly towards high-end developments, the statement added.