Luxury Housing Booms: 75% YoY growth in 2023

16 Feb 2024 CW Team

A total of 12,935 units were sold in 2023, a significant increase from the 7,395 units recorded in 2022. Key industry players like DLF, Sobha, Lodha, TARC, and Max contributed to this growth by launching and successfully selling apartments within this upscale price range, surpassing annual projections.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, commented on the evolving market dynamics, stating, "In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favorable market conditions driving healthy growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive."

The luxury segment's percentage share in the total residential unit sales rose from 2% in 2022 to 4% in 2023. A substantial 45% year-on-year increase in unit launches occurred during the same period, indicating the growing interest and supply in the luxury housing sector.

DLF and TARC played pivotal roles in this growth, with DLF successfully selling over 2,000 apartments priced at Rs 6.5 crore and above within three days. TARC introduced apartments in central Delhi priced around Rs 9 crore. Delhi-NCR experienced the highest surge with a 197% year-on-year increase, followed by Pune, Hyderabad, and Mumbai, which recorded annual growth rates of approximately 144%, 64%, 24%, and 4%, respectively.

According to Mohit Jain, Managing Director of Krisumi Corporation, "Higher economic growth is resulting in higher disposable income and better job opportunities, bringing an enhanced lifestyle within reach for many. Homebuyers are increasingly seeking spacious dwellings in well-established societies."

The overall residential sales across various price categories exceeded 3,22,000 units in 2023, marking a 9% year-on-year growth. Developers responded to sustained demand by launching over 3,13,000 new housing units in 2023, reflecting a 6% year-on-year increase.

Mid-end projects emerged as the leading category, contributing to 45% of total sales in 2023, followed by high-end and affordable projects. Pune, Mumbai, and Bangalore collectively accounted for 61% of total sales, while unit launches in Mumbai, Pune, and Hyderabad comprised a 67% share in 2023.

The high-end housing segment, comprising apartments priced at Rs 40 million and above, witnessed a remarkable 75% year-on-year sales growth in 2023. This surge in demand reflects the continued preference of buyers for substantial investments in premium properties offering more space and enhanced amenities. A total of 12,935 units were sold in 2023, a significant increase from the 7,395 units recorded in 2022. Key industry players like DLF, Sobha, Lodha, TARC, and Max contributed to this growth by launching and successfully selling apartments within this upscale price range, surpassing annual projections. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, commented on the evolving market dynamics, stating, In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favorable market conditions driving healthy growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive. The luxury segment's percentage share in the total residential unit sales rose from 2% in 2022 to 4% in 2023. A substantial 45% year-on-year increase in unit launches occurred during the same period, indicating the growing interest and supply in the luxury housing sector. DLF and TARC played pivotal roles in this growth, with DLF successfully selling over 2,000 apartments priced at Rs 6.5 crore and above within three days. TARC introduced apartments in central Delhi priced around Rs 9 crore. Delhi-NCR experienced the highest surge with a 197% year-on-year increase, followed by Pune, Hyderabad, and Mumbai, which recorded annual growth rates of approximately 144%, 64%, 24%, and 4%, respectively. According to Mohit Jain, Managing Director of Krisumi Corporation, Higher economic growth is resulting in higher disposable income and better job opportunities, bringing an enhanced lifestyle within reach for many. Homebuyers are increasingly seeking spacious dwellings in well-established societies. The overall residential sales across various price categories exceeded 3,22,000 units in 2023, marking a 9% year-on-year growth. Developers responded to sustained demand by launching over 3,13,000 new housing units in 2023, reflecting a 6% year-on-year increase. Mid-end projects emerged as the leading category, contributing to 45% of total sales in 2023, followed by high-end and affordable projects. Pune, Mumbai, and Bangalore collectively accounted for 61% of total sales, while unit launches in Mumbai, Pune, and Hyderabad comprised a 67% share in 2023.