Luxury housing market boom: Homebuyers flock to buy homes above ₹1 crore

The housing sector has received a positive response from buyers with sales for the first quarter of 2024 registering a 9% uptick compared to the same period last year. The sales have been robust in Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Ahmedabad, Chennai, and Kolkata

Notably, the preference for ₹1 core or more home units has seen a sharp uptick this year as compared to last year. The demand for such units grew by 40% between January to March as compared to a 29% hike last year for the same period as per a Knight Frank report.

The report also indicated that this segment of units was most popular in the Delhi NCR region, selling approximately 10,558 units and amounting to 68% of total sales for the region. Following close, Bangalore and Mumbai sold 7,401 and 6,075 housing units of above ₹1 crore in the same period.

To meet the rise in demand, construction work has been ramped up with A total of 93,254 new residential units launched between January and March 2024 registering a growth of 7% year-on-year. Kolkata registered an 89% increase in new home unit launches for the first quarter of 2024.

Housing prices have surged across all eight metro cities, with Hyderabad leading the pack with a significant 13% year-on-year increase, driven by a growing focus on premium property development.

Nevertheless, Mumbai retains its status as the most expensive housing market, commanding ₹7,891 per square foot. It is followed by Bengaluru (₹6,145/sq ft), Hyderabad (₹5,655/sq ft), and the NCR (₹4,787/sq ft), respectively.