Delhi-NCR Sees Highest Sales Of Luxury Housing In January-June 2023; Mumbai, Hyderabad Follow – News18

Luxury Real Estate: Maintaining a strong sales momentum, the luxury housing segment in India registered a 130 per cent y-o-y surge across top-7 cities during the January-June 2023 period. The total sales of luxury housing units during the period stood at 6,900, compared with 3,000 units during the year-ago period, according to a report by real estate consultant CBRE South Asia.

In terms of sales, Delhi-NCR topped with sales of 2,900-unit, marking a 205 per cent Y-o-Y increase, followed by Mumbai, which recorded sales of 1,900-units, an 18 per cent Y-o-Y growth

“Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, combined together accounting for nearly 90 per cent of the total luxury housing sales across top-7 cities,” CBRE said in the report, titled ‘India Market Monitor Q2 2023’.

It added that Hyderabad recorded the highest percentage increase in sales on a Y-o-Y basis during January-June 2023, with nearly 14-fold growth with total sales of 1,400 units. This was followed by a nearly six-fold increase in sales in Pune and over three-fold jump in Delhi-NCR on a y-o-y basis.

“In terms of the quantum of sales of luxury residential units, Delhi-NCR topped with sales of 2,900-unit, marking a 205 per cent Y-o-Y increase; followed by Mumbai, which recorded sales of 1,900-units, an 18 per cent Y-o-Y growth; while sales in Kolkata stood at 200 units, a 100 per cent Y-o-Y increase; and Pune recorded sale of 300-units, registering a 500 per cent Y-o-Y increase during this period,” CBRE said in the report.

A similar trend prevailed during the April-June 2023 quarter in the luxury housing segment across the top cities registering a 121 per cent y-o-y increase in sales. The quarter saw total sales of 3,100 luxury housing units, compared with 1,400 units during the same quarter last year.

Among the cities, Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets during the quarter, while luxury sales in Hyderabad increased by 20 times, it jumped three-fold in Delhi-NCR.

“The surge in demand for luxury housing was primarily driven by a growing preference for enhanced amenities and more spacious living areas. Moreover, it is the aspirational class that has been on an upward trend and driving luxury sales. Besides, the rise in NRI investments in the Indian real estate market has significantly contributed to the heightened demand for luxury properties,” it said.

Overall, in the residential sector, during January-June 2023 period, a total of 154,000 units were sold, and over 151,000 new units were launched across all categories. During the January-June 2023 period, sales increased by about 3 per cent compared to the same period a year ago, whereas new launches recorded a growth of 9 per cent y-o-y basis, highlighting a substantial rise in the newly launched residential properties compared to the corresponding period in the previous year.

Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East & Africa) of CBRE, said, “We are witnessing an impressive growth and resilience of the luxury housing segment, as evident from the data showing a remarkable 130 per cent increase in sales. This surge signifies the strong demand and positive momentum in the luxury housing market. Looking ahead, we anticipate a stronger second half of 2023 in the residential market, supported by factors such as a healthy supply pipeline, the approaching festive season, and stabilising mortgage rates.”

He added that despite global macroeconomic challenges, the residential sector is expected to maintain robust sales momentum. Additionally, the premium and luxury segments are expected to perform well with new launches, and the volatility in mortgage rates on demand in this segment is anticipated to be limited.