Following a great performance in 2022, sales in the luxury residential market scaled by 151% year over year (y-o-y) in the quarter from January-March, 2023. According to a Coldwell Banker Richard Ellis (CBRE) report, sales and launch activity in the market maintained its momentum.
A survey stated that the post-pandemic uptick in ownership of luxury housing results from homebuyers’ mindset looking for larger spaces and a higher preference for home ownership with better amenities.
Sales of residential units overall increased by 12% quarter-over-quarter(Q-o-Q) and year-on-year (YoY) during the fourth quarter of FY23 across all segments. Over 78,000 housing units were sold and roughly 81,000 were launched between January and March 2023.
According to the CBRE report, out of this, mid-range developments sold 49% of the units, followed by affordable/budget buildings. An earlier study had shown that, compared to only 29% of baby boomers, more than half of Gen Z respondents expected to relocate to a new home in the following two years.
According to regions, for the quarter ending March 2023, sales of luxury homes in Delhi-NCR increased by over 216%, Mumbai by 44%, Hyderabad by 800%, Kolkata by 100%, and Pune by around 13 times.
With 19,000 sold housing units, Mumbai had the most sales, followed by Pune (18,000), Delhi-NCR (11,600), and Bengaluru (11,500). According to CBRE, during Q1 2023, Mumbai (25,300 units), Pune (16,000 units), and Delhi-NCR (11,200 units) collectively accounted for nearly 64% of new launches.
Chairman and Chief Executive Officer (CEO), India, South-East Asia, Middle East & Africa, CBRE, Anshuman Magazine mentioned that the momentum is expected to continue in the coming quarters as well. Projects with better amenities, focus on health and safety and clean surroundings to further gain an edge amidst evolving consumer preferences.
With more fresh launches in this price range, projects with greater ticket sizes—that is, those with budgets of US$ 183,403 (Rs. 1.5 crore) and higher—will continue to experience growth in sales. The effect of rising house mortgage rates would also be minimal in this market. Additionally, more joint ventures and collaborative development projects are anticipated as large developers enter tier-II cities in collaboration with local companies to navigate regulatory obstacles and comprehend consumer preferences.
