Luxury real estate | Image:Freepik
Premium homes flourish: Luxury residential units priced above Rs 4 crore have experienced a 10 per cent increase in sales from January to March 2024 across seven major Indian cities.
The luxury segment accounts for approximately 5 per cent of total residential unit sales during this period, with 4,140 units sold in the luxury category compared to 3,780 units in the same period last year, according to a recent report by CBRE.
The resurgence of luxury residential real estate in India has driven significant growth, with around 45 per cent of the total luxury stock added in the last five years. This segment has maintained a Compound Annual Growth Rate (CAGR) of over 9 per cent since 2019, particularly in gateway cities.
Mumbai leads luxury
Mumbai leads the luxury segment, representing over 40 per cent of the country’s luxury inventory in the first quarter of 2024, followed closely by the Delhi-NCR region, which contributes more than 25 per cent of the country’s luxury inventory during the same period.
Luxury properties in Delhi are predominantly situated in the southern part of the city, including areas like Amrita Shergill Marg, Golf Links, and Prithviraj Road, with average prices typically ranging from Rs 40 to Rs 60 crore.
Gurgaon has also emerged as a key luxury market in the region. Overall residential sales across various categories reached nearly 85,000 units in January to March 2024, marking an 8 per cent year-on-year growth.
Mid-range momentum
The sustained demand has prompted developers to introduce approximately 80,000 new housing units in Q1 2024. Mid-end projects, priced between Rs 45 lakh to Rs 1 crore, have been the primary drivers of sales, capturing a 47 per cent share of total sales in the January to March 2024 period.
This was followed by high-end projects, priced between Rs 1 crore to Rs 2 crore, and affordable projects, priced up to Rs 45 lakh.
