Construction Industry News
CBRE South Asia has announced the findings of its report, ‘India Market Monitor Q1 2024’. According to the report, the luxury segment housing (units priced Rs 4 cr and above) recorded a 10% Y-o-Y sales growth during Jan-Mar ‘24. The percentage share of the luxury segment in the overall residential unit sales stood at about 5% in Jan- Mar ’24. The report further points to a ~64% Y-o-Y increase in new launches of luxury segment units during Jan-Mar ’24.
City-wise, the report stated that Mumbai recorded the highest surge in unit sales during the review quarter, registering a 15% Y-o-Y increase in luxury segment residences. This was followed by Delhi-NCR, Hyderabad, and Pune. Hyderabad and Pune saw sales activity increasing by more than 2x and 4.7x Y-o-Y, respectively.
The resurgence in India’s luxury residential real estate has spurred robust growth, as about 45% of the overall luxury stock was injected in the last five years alone. The segment has also grown at a CAGR of over 9% since 2019 across the gateway cities.
In addition, Mumbai leads the luxury segment, accounting for more than 40% of the country’s total luxury inventory in Jan-Mar’24. The city is a prominent and highly coveted market, attracting numerous HNIs and UHNIs, including top executives and Bollywood celebrities. Locations such as Altamount Road, Nepean Sea Road, Worli, Prabhadevi, Juhu, and Bandra (West) in Mumbai command high capital values owing to premium locations, with an average ticket size often ranging from Rs 20 to Rs 60+ crore. Occasionally, apartments priced above Rs 100 crore are also recorded.
Delhi-NCR follows closely, accounting for over 25% of the country’s luxury inventory in Jan-Mar’24. Like Mumbai, luxury properties in Delhi are concentrated in the southern part of the city, with areas such as Amrita Shergill Marg, Golf Links, and Prithviraj Road commanding average ticket sizes usually ranging from Rs 40 to 60+ crore. In recent years, Gurgaon has emerged as a prominent luxury market within the region. The demand for gated communities intensified during the pandemic, bolstering Gurgaon’s reputation as a luxury destination. Locations such as DLF Phase I/II, Golf Course, and Golf Course Extension typically witness average ticket sizes between Rs 10 to 20 crore. Further, Hyderabad, experiencing remarkable growth driven by a pro-business environment, claims the third spot with an almost 10% share of the country’s luxury inventory. The city has witnessed an influx of luxury apartments and a surge in demand within this segment. Areas such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Neopolis report sales with average ticket sizes ranging from Rs 20 to over 40 crore.
The overall residential sales across categories reached almost 85,000 units in Jan-Mar ‘24, registering an 8% Y-o-Y growth. Sustained momentum in demand also led developers to launch nearly 80,000 new housing units in Q1 2024. Mid-end projects (priced between Rs 45 lakh to Rs 1 crore) emerged as the leading category driving sales, recording a 47% share in total sales for Jan-Mar’ 24, followed by high-end (INR 1 – 2 crore) and affordable projects (up to Rs 45 lakh). Pune, Mumbai, and Bangalore cumulatively accounted for about 65% of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for an almost 69% share during Jan-Mar ’24.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterized by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience. Going forward, capitalizing on the positive sales trend, developers nationwide are ramping up activity and are expected to launch new units in the segment. Furthermore, Sustainability has become a critical differentiator in real estate development, with an increasing emphasis on constructing eco-friendly and energy-efficient dwellings. As buyers in this category tend to be more aware of and demanding such features, developers are integrating features such as energy-efficient appliances, rainwater harvesting systems, indoor air quality control, and renewable energy sources to be able to tick the boxes when catering to the demand for luxury homes.”
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