Luxury Home Sales Soar 37.8% in 2024, Driving Real Estate Growth

Sales of luxury homes in India, priced at ₹4 crore and above, have experienced a remarkable growth of 37.8% year-on-year during the first nine months of 2024, according to a report by CBRE South Asia. This surge in demand is underscored by the sale of 12,625 luxury units from January to September, a significant increase from 9,160 units in the same timeframe last year.

The chairman and CEO of CBRE India, highlighted the trend towards high-end and premium segments as traditional markets like Noida, Bengaluru, Pune, and Chennai increasingly gravitate towards luxury developments. He noted a noticeable shift from standalone bungalows to modern apartments and penthouses, emphasising that premium amenities will play a pivotal role in distinguishing luxury projects in the competitive landscape. The Delhi-NCR, Mumbai, and Hyderabad regions have emerged as the primary markets, collectively accounting for nearly 90% of total luxury housing sales across seven key cities. Notably, Delhi-NCR led the way with 5,855 units sold, representing a staggering 72% increase year-on-year. Mumbai followed with 3,820 units sold, reflecting an 18% growth, while Hyderabad recorded sales of 1,540 luxury homes. Pune also saw a surge, with 810 units sold in the same period.

Moreover, Kolkata demonstrated a substantial uptick in luxury residential sales, showcasing a 1.6-fold increase. The robust demand has prompted developers to launch new projects, adding approximately 215,000 units to the market. Mumbai, Pune, and Hyderabad are particularly dominant, together representing 64% of the cumulative unit launches between January and September 2024. In the July to September 2024 quarter alone, total sales surpassed 68,400 units, supported by over 62,000 new unit launches. The apartment launch share in Mumbai, Pune, and Hyderabad accounted for 65% of total sales in the same period, with Mumbai holding a 32% share, followed by Pune at 18% and Bengaluru at 15%. The rise in luxury home sales reflects not only growing affluence but also a shift in consumer preferences towards more sophisticated living environments. Many buyers are now looking for homes that offer not just luxury but also sustainability. This trend signals a broader awareness of environmental responsibility, with a focus on developments that incorporate green technologies and sustainable practices. As cities expand and modernise, the luxury housing market’s growth is a testament to the evolving landscape of Indian real estate. While consumers express excitement about the availability of premium homes, there is also a sense of responsibility towards ensuring that these developments support sustainable urban growth.