The unwavering demand for luxury housing since the pandemic has kicked off a spate of new launches in this category. Latest ANAROCK data shows that out of 1,16,220 units launched in Q3 2023 in the top 7 cities across various budget categories, approx. 27% (approx. 31,180 units) were in the luxury category. This is the highest quarterly luxury supply entering the market in the last five years.
Back in Q3 2018, the supply share of luxury housing was just 9% - of approx. 52,120 units launched across budget segments then, just 4,590 were luxury homes. Q3 2023 saw Hyderabad churn out the highest new luxury supply - approx. 14,340 units - followed by MMR with 7,830 units. In terms of overall luxury share Hyderabad clocked in at 46% and MMR at 25%.
Prashant Thakur, Regional Director & Head – Research, ANAROCK Group, says, “Developers have been bullish about the luxury homes segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top 7 cities. Post pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space. ANAROCK’s most recent consumer sentiment survey also reflects this trend. In the pre-Covid edition of the survey (H1 2019), 9% respondents preferred luxury homes priced >INR 1.5 Cr while in the current edition of H1 2023, this share has risen to 16%.”
While luxury housing supply continues its bull-run, affordable housing (homes priced at or under INR 40 lakh) has reduced further to 18% in Q3 2023. Of approx. 1,16,220 affordable homes launched in the quarter, approx. 20,920 were in the affordable category. In the corresponding period in 2018, this segment’s supply share was a whopping 42%. Of approx. 52,120 units launched across the top 7 cities in Q3 2018 across various budget categories, around 21,900 units were in the affordable segment.
Hyderabad saw the highest new luxury supply among the top 7 cities in Q3 2023. As many as 14,340 luxury units were launched in the city in Q3 2023, comprising a nearly 46% share of the total new luxury supply in the quarter. Back in Q3 2018, just 210 units were launched in this category in the city.
MMR saw the second highest new luxury supply with approx. 7,830 units in Q3 2023 -a sharp contrast to 2,380 in Q3 2018.NCR witnessed new luxury supply of approx. 3,870 units in Q3 2023, against 930 units in the corresponding period of 2018.
Pune saw approx. 1,940 luxury units launched in Q3 2023; in 2018, the luxury supply in the Oxford of the East was under 80 units.Bengaluru saw approx. 1,710 new luxury units launched in Q3 2023, against 290 units in the corresponding period of 2018.
Kolkata saw approx. 1,030 luxury units launched in Q3 2023 while in Q3 2018, the new supply was under 120 units.Chennai witnessed new luxury supply of nearly 460 units in Q3 2023, against 580 units in the corresponding period of 2018. It is the only city to see its luxury supply decline further.
