A recent report by CBRE South Asia Pvt Ltd titled ‘India Market Monitor Q4 2023’ reveals an astounding 75% year-on-year growth in the sales of luxury homes priced at Rs four crore and above in 2023. The surge is attributed to robust demand, with Delhi-NCR leading the pack with an impressive 197% year-on-year increase, followed by Pune, Hyderabad, and Mumbai.
Unit Launches See a Significant Increase
The report also highlights a noteworthy 45% year-on-year increase in unit launches in 2023, reflecting the sustained momentum in the luxury real estate sector. The overall percentage share of luxury properties in the total residential unit sales doubled from two per cent in 2022 to four per cent in 2023.
Luxury Real Estate Gaining Traction
The surge in luxury home sales is linked to the growing Indian economy and the rising aspirations of affluent individuals seeking a sophisticated lifestyle. High Net-worth Individuals (HNIs) and Non-Resident Indians (NRIs) find luxury real estate a compelling investment option, offering stability amid global economic uncertainties.
Diverse Buyers in the Luxury Segment
The report sheds light on the diverse buyer profile in the luxury segment, with young high-income professionals, start-up founders, and nuclear families increasingly opting for luxury residences. This trend underlines the broad appeal of luxury properties across different demographics.
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Regional Highlights: Delhi-NCR Takes the Lead
| City | Sales (Units) in 2023 | Year-on-Year Growth |
|---|---|---|
| Delhi-NCR | 5,530 | 197% |
| Mumbai | 4,190 | 24% |
| Pune | 450 | 144% |
| Hyderabad | 2,030 | 64% |
| Bengaluru | 265 | N/A |
| Kolkata | 310 | N/A |
| Chennai | 160 | N/A |
Delhi-NCR emerged as the leader in the luxury real estate market, witnessing an exceptional 197% year-on-year surge in 2023. Mumbai, with 4,190 units sold, recorded a 24% year-on-year increase, and Pune and Hyderabad experienced annual growth rates of 144% and 64%, respectively.
Positive Outlook for Luxury Real Estate
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, expressed optimism about the sector’s vibrancy. He anticipates that the premium and luxury real estate sectors will continue to thrive, supported by favourable market conditions and sustained demand in the coming years.
The report indicates a positive trajectory for luxury real estate, emphasising its growing significance in India’s real estate landscape.