Sale of luxury homes worth Rs 4 crore and above witnessed a remarkable surge of 97% year-on-year in the seven major cities of India from January to September 2023, according to a report by real estate firm CBRE. The cities of Delhi-NCR, Mumbai, and Hyderabad accounted for 90% of the total luxury housing sales during this period. Delhi-NCR led the pack with 37% of the sales, followed closely by Mumbai at 35% and Hyderabad at 18%. Pune made up the remaining 4%.
The report attributed the increase in luxury housing sales to several factors, including a strong economy, rising disposable incomes, a desire for improved living standards, and a scarcity of luxury residences in major metropolitan areas.
CBRE anticipates further growth in luxury housing sales during the festive season from October to December. The firm also expects an increase in first-time luxury home buyers in the last quarter of the year.
Speaking to NDTV, CBRE stated, “The primary reason for this surge is the rising aspirations and a growing Indian economy. Incentives offered by developers and the integration of smart home technologies, such as smart switches and remote-controlled lighting, have also contributed to this increase in luxury home sales. Additionally, the need for larger spaces post-pandemic has further fueled the demand.”
The CBRE report predicts a surge in residential sales and new launches in the premium and luxury housing segment, potentially reaching a 10-year high in 2023, driven by economic growth, favorable regulations, and evolving lifestyle preferences. The increasing popularity of smart home technology and developer incentives is driving the boom in luxury home sales as buyers seek more spacious living arrangements post-pandemic.
These trends highlight the growing significance of luxury homes in the Indian real estate market.
