Introduction
India’s luxury housing segment (units priced at Rs 4 crore and above) have recorded a year-on-year (YoY) growth of 75% in sales in 2023. It highlights the recent findings of the India Market Monitor Q4 2023 report by the real estate consulting firm.
Table of Contents
- All Luxury Units Are Sold Out
- Delhi Records Highest Annual Growth
- State-Of-The-Art and Affordable Projects
- Pune Top the Residential Real Estate Market
- Growth in the Foreseeable Future: CEO Anshuman
CBRE South Asia expects a 45% year-on-year increase in unit launches in 2023, the report said. The luxury segment’s percentage share of total residential unit sales is 4% in 2023, almost doubling to 2% in 2022.
All Luxury Units Are Sold Out
Total units sold in luxury housing segment in India (unit price Rs. 4 crore and above).
| City | CY 2023 | CY 2022 |
| Delhi -NCR | 5,530 | 1,860 |
| Mumbai | 4,190 | 3,390 |
| Pune | 450 | 190 |
| Bangalore | 265 | 265 |
| Kolkata | 310 | 300 |
| Hyderabad | 2,030 | 1,240 |
| Chennai | 160 | 150 |
| Total | 12,935 | 7,395 |
Delhi Records Highest Annual Growth
According to a recent report, Delhi-NCR has recorded the highest annual growth rate of 197%, which is quite significant. Pune, Hyderabad, and Mumbai also showed notable growth rates of 144%, 64%, and 24%, respectively.
The report suggests that new launches are also on par, and sales are expected to grow by 45% annually in 2023. This means that the real estate market in these cities is expected to see a steady rise in the coming years, making it an ideal time for investors and buyers to explore their options.
State-Of-The-Art and Affordable Projects
According to the report, total residential sales across price categories will cross 3,22,000 units in 2023, registering a growth of 9% YoY. A steady momentum in demand has led developers to launch 3,13,000 new housing units in 2023. It grew by 6% year-on-year.
Mid-end projects emerged as the leading category, driving sales. By 2023, it will account for 45% of total sales. Then there are the sophisticated and affordable projects. Pune, Mumbai, and Bangalore accounted for 61% of the total sales. On the other hand, unit launches in Mumbai, Pune, and Hyderabad accounted for a 67% share in 2023.
During October–December ’23, a total of 86,000 residential units were sold, and 90,000 units were launched on an aggregate basis. It highlighted that in October–December, new unit launches registered a growth of 22% year-on-year and nearly 26% quarter-on-quarter. The premium and luxury segments accounted for 10% and 4% shares, respectively, during this period.
Pune Top the Residential Real Estate Market
From October to December ‘23, Pune topped the residential real estate market, recording the highest sales among all major cities in India. With a 24% share of the market, Pune overtook Mumbai, which came in second with a 21% share.
Delhi-NCR and Hyderabad trailed behind with 17% and 15% market shares, respectively. This data points towards increasing demand for residential properties in Pune. This could be due to the rapidly developing infrastructure, IT industry, and favorable living environment.
In terms of unit launches during the same period, Mumbai leads with a share of 27.5%, followed by Hyderabad with 26.9% and Pune with 19%. The mid-end segment accounted for around 36% of the unit launches. The high-end segment stood at 33% and the premium category at 14% during this period.
Growth in the Foreseeable Future: CEO Anshuman
India, South-East Asia, the Middle East, & Africa CBRE Chairman & CEO Anshuman Magazine said, “Given the changing landscape, the premium and luxury sectors are expected to maintain their attractiveness, supported by favorable market conditions and healthy growth.
Growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive. A 75% increase in sales of luxury units and a significant 45% increase in launches underscore the dynamism of the sector.
Emerging market dynamics reflect subtle demand for high-end residences, particularly in key cities such as Delhi-NCR, Mumbai, Pune, Hyderabad, and Bangalore. The positive momentum seen in the last two years in terms of new launches and sales is likely to continue in 2024.”.
Conclusion
The recent findings of the India Market Monitor Q4 2023 report by real estate consulting firm CBRE South Asia have been highlighted. With a 75% growth in the luxury housing segment in 2023, the luxury segment will account for 4% of total residential unit sales. Visit our Openplot for the latest updates.
Also read: Pune Property Registrations Increased by 46% YoY in January