The luxury housing market in India has witnessed continued momentum in sales and launch activity for the second consecutive year in 2023, according to CBRE’s ‘India Market Monitor Q1 2023’ report. The report noted an increase of approximately 151% year-on-year (YoY) in luxury housing sales between January and March 2023. According to the research, Delhi-NCR is the top market for luxury house sales, with a 216% increase from Q1CY22 to Q1CY23. The top cities with the greatest demand for high-end real estate units include Mumbai, Hyderabad, Pune, and Kolkata.

Reasons for the Rise in Luxury Housing Ownership

Luxury property ownership has increased after the pandemic, and this trend is thought to be related to a shift in homebuyers’ attitudes. Today’s homebuyers choose larger homes with more amenities and are more interested in home ownership. The luxury housing market includes any home that costs Rs 4 crore or more, while the high-end or premium segment includes homes that cost between Rs 1 and Rs 1.5 crore.

Sales Figures

The report stated that sales in Delhi-NCR surged by over 216%, Mumbai by 44%, Hyderabad by approximately 800%, Kolkata by 100%, and Pune by nearly 13 times on a YoY basis for the quarter ending Jan-Mar’ 23. The overall sales of residential units across all segments have also reported a 12% increase quarter-on-quarter (QoQ) as well as YoY during the period of January-March 2023. Between January and March 2023, more than 78,000 residential units were sold, while over 81,000 new units were introduced during this time.

Preference for Mid-End Housing Units

According to the research, 49% of the sold housing units fell into the mid-range group, followed by affordable and low-cost developments. More than half of Gen-Z respondents to CBRE’s earlier poll indicated they intended to relocate to a new house within the next two years, compared to just 29% of baby boomers.

Predictions for Future Luxury Housing Sales

CBRE’s Chairman & CEO – India, South-East Asia, Middle East & Africa, Anshuman Magazine said that the demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. “The momentum is expected to continue in the coming quarters as well. Projects with better amenities, focus on health and safety and clean surroundings to further gain an edge amidst evolving consumer preferences,” he added.

Land Deals in India

Anuj Puri, Chairman of the ANAROCK Group, stated in separate research that there were much more land deals in FY23 than there were in FY22, going from 44 to 87. However, the increase in area was only 13%, suggesting that some smaller plots were abandoned in FY23. Large and listed developers have benefited from the unrelenting housing boom, with residential sales in the top 7 cities reaching an all-time high in the most recent financial year (about 3.8 lakh units). Due to the fact that land is the primary raw material used in the development of the real estate, these companies have been strategically investing in significant micro-markets, and quite a few smaller agreements were completed in the previous fiscal year.

Conclusion

In conclusion, the demand for luxury housing in India has continued to increase despite the economic uncertainty caused by the pandemic. The rise in luxury housing ownership is believed to be a result of a changed mindset of homebuyers, who are now looking for larger spaces