December 1, 2024 / The Free Press Journal
The luxury housing market in India is experiencing a significant surge, driven by a desire for exclusivity, enhanced lifestyles, and premium living spaces. Despite global economic uncertainties, the demand for high-end properties remains strong, reflecting affluent buyers' confidence in the long-term value of premium real estate.
Recent data from CREDAI-MCHI shows an 18% increase in total sales value across India’s top seven property markets, reaching Rs 279,309 crore in the first half of FY 2024-25. This growth occurred despite a 3% decrease in the number of units sold, indicating a shift towards luxury homes. The average price per home has risen to Rs 1.23 crore from Rs 1 crore last year.
Mumbai, Delhi-NCR, and Bengaluru are leading the luxury housing market. The Mumbai Metropolitan Region (MMR) recorded the highest sales value of Rs 114,529 crore with an average ticket size of Rs 1.47 crore. Delhi-NCR and Bengaluru also showed strong performance. Cities like Hyderabad, Chennai, Pune, and Kolkata have seen substantial increases in average ticket sizes, indicating a nationwide demand for premium housing.
The demand for luxury housing is more than a trend; it reflects the evolving aspirations of homebuyers seeking elevated lifestyles. According to the India Market Monitor Q3 2024 – Residential by CBRE South Asia Pvt. Ltd, sales of luxury units priced above Rs 4 crore rose by 37.8% year-on-year during January-September 2024. Delhi-NCR led in luxury unit sales with around 5,855 units sold, a 72% increase, followed by Mumbai with 3,820 units, an 18% increase.
Nishant Deshmukh, Founder and Managing Partner of Sugee Group, stated, "The luxury housing market is evolving beyond just offering homes; it’s about curating an unparalleled lifestyle that resonates with discerning buyers' aspirations."
Developers are increasingly catering to this shift in buyer preferences with unique, high-end projects. Data from Anarock suggests that holiday homes, farmhouses, and villas are rising in demand, particularly among buyers seeking spacious properties that can accommodate remote work setups and long-term investments. Approximately 25% of luxury buyers invest in holiday homes, while 20% prefer farmhouses.
Vikas Sutaria, Founder of Iraah Lifespaces, noted, "Luxury is not just about owning a premium property but about curating an experience that elevates one's lifestyle."
Anarock's report showed that of the 25 ultra-luxury properties sold in top cities in 2024, Mumbai sold 21 units worth Rs 2,200 crore, representing an 84% share of the total deals in this segment.
Looking ahead, the luxury housing market is expected to grow, driven by robust demand from NRIs, HNIs, and affluent domestic buyers. Developers are responding with innovative projects that exceed buyer expectations.
Anil Mutha, Chief Visionary and Co-Founder of Nandivardhan Group, commented, "The rise in luxury housing in South Mumbai signifies a transformation in buyer aspirations, blending opulence with heritage and modernity."
Umesh Jandial, Chief Business Officer of Omkar Realtors & Developers, remarked, "The growing demand for luxury homes reflects a significant transformation in consumer behavior, driven by a preference for quality and exclusivity."
The luxury housing market in India is not just about homes—it’s about crafting lifestyles, experiences, and legacies. As the segment continues to evolve, it remains a lucrative and aspirational investment avenue, setting new benchmarks in real estate.
Source: The Free Press Journal
(The story has been published from a wire feed without modifications to the text)
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