Luxury Housing Sales Increase 97% YoY In Top 7 Cities
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, announced the findings of its report, ‘India Market Monitor Q3 2023’. The findings highlight key trends in the residential sector across the top 7 cities in India. The luxury housing segment in India comprising units priced at INR 4 crores and above maintained strong sales momentum, registering a 97% Y-o-Y increase in Jan-Sep’23 period. Total sales of luxury units during Jan-Sep’23 period stood at approximately 9,200 compared to 4,700 units during the same period last year. Among the leading cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the top 3 markets dominating sales, cumulatively accounting for nearly 90% of the total luxury housing sales across the top seven cities. Delhi-NCR topped with a share of about 37%. This was followed by Mumbai, Hyderabad, and Pune, accounting for approximately 35%, 18% and 4% respectively. A similar trend prevailed during the Jul-Sep’23 quarter in the luxury housing segment across the top 7 seven cities, registering a 19% Y-o-Y increase in sales. The quarter witnessed total sales of approximately 2,400 units, compared to about 2,000 units during the same quarter in 2022. Among the cities, Mumbai, Hyderabad and Delhi-NCR emerged as the top markets leading sales during the quarter. Building on the robust sales performance witnessed throughout the first nine months of 2023, the housing market is primed for further growth with the ongoing festive season. It is anticipated that 2023 festive housing sales are set to break a 3-year record, exceeding the 150,000-unit mark. Overall residential sales across price categories exceeded 230,000 units during Jan-Sep’23, registering a Y-o-Y growth of about 5%. Sustained momentum in demand led developers to launch over 220,000 new housing units during the same period. In Jan-Sep’23, residential sales were dominated by mid-end projects accounting for almost half of the total sales, followed by high-end and affordable projects. Mumbai, Pune and Bangalore cumulatively accounted for a 62% share in sales during the Jan-Sep’23 period. On the other hand, Mumbai, Pune, and Hyderabad dominated the new launches during the first nine months of the year, capturing a significant cumulative share of about 64%. Notably, over 80,000 residential units were sold during the Jul-Sep’23 quarter, while new unit launches stood at 72,000 during the same period. Mumbai, Hyderabad and Pune dominated the market for apartment launches, having a cumulative share of 63%. Further, Pune, Mumbai, and Bangalore accounted for the maximum sales of residential units in the quarter gone by, accounting for a cumulative share of about 62%. High-end and premium categories remained key sales drivers with a cumulative share of 35%, while the mid-end category’s share stood at 46% during the Jul-Sep’23 quarter. Both sales and new launches could reach a ten-year high in 2023, touching or even exceeding the 300,000-unit mark. Coming months to see first time buyers investing in residential property, taking advantage of the festive season offers and discounts Projects in the premium / luxury segment would continue to witness healthy traction amidst a spate of new launches; mortgage rates to have a relatively muted impact on demand from this segment. The capital value growth is expected to see divergent trends among specific regions and property categories and is likely to be governed by unsold inventory levels and inventory overhang. Affordability is no longer the sole decisive factor for homebuyers as health & safety, sustainability and integration of smart home technologies have also started to emerge as being core to home purchase decisions
Tags : CBRE South Asia Pvt. Ltd Mumbai Hyderabad Pune homebuyers premium luxury segment