Luxury homes sales in India rose 130% in January-June period: CBRE

Despite the prices of luxury housing soaring, it has continued to witness a strong demand. 3100 homes priced at Rs 4 crore and above were sold during the April-June period across seven major cities, according to CBRE. This compares to 1,400 units being sold during the same time in the year-ago period.

As per the data, Hyderabad saw 20-fold jump to 1,000 units being sold during the second quarter of this calendar year up from 50 units sold in the corresponding period of the last year.

Sales of luxury homes in Delhi-NCR rose three times to 1,050 units from 350 units.

In Pune, 150 units were sold in April-June this year as against nil in the year-ago period.

Demand in Chennai and Kolkata remained flat at 50 units each.

Sales in Mumbai declined to 750 units in the second quarter of this year from 800 units in the year-ago period. In Bengaluru, demand fell by half to 50 units during April-June as compared to 100 units in the corresponding period of the last year.

"We are witnessing an impressive growth and resilience of the luxury housing segment. This surge signifies the strong demand and positive momentum in the luxury housing market.

"Looking ahead, we anticipate a stronger second half of 2023 in the residential market, supported by factors such as a healthy supply pipeline, the approaching festive season, and stabilising mortgage rates," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa of CBRE, said.

On the trend, DLF Group Executive Director & Chief Business Officer Aakash Ohri said that the luxury housing sector is expected to sustain strong sales momentum, on the back of rapid urbanisation, improved affordability and aspirational needs.

"Among other Indian cities that have recorded a rise in demand for luxury properties, NCR stands out observing not just an increase in sale, but even rising rentals for luxury homes. Within NCR, Gurugram particularly has emerged as a preferred choice for luxury homebuyers, with large presence of HNIs (High Networth Individuals)and UHNIs (Ultra High Networth Individuals) base and a significant rise in the number of affluent millennials in the region," he said.

Mohit Jain, Managing Director of Gurugram-based Krisumi Corporation, said, the luxury housing segment is outperforming other segments due to the high aspirations among young homebuyers and changing preferences.

The limited supply of luxury homes and the rising demand is another significant reason that has led to a surge in sales, Ravish Kapoor, Managing Director of realty firm Elan Group, said.