The Indian real estate market, in the recent years, has had a remarkable transformation particularly in the luxury housing segment. The factors to this rising luxury housing booms can be added with the rising incomes and growing aspirations for an upscale living. Another trend can be the premiumisation that fueled the demand of the luxury properties. Further to this, the shortage of luxury apartments in prime locations and preference for modern amenities and exclusivity may have contributed to this recent surge.
For instance, in the latest luxury housing segment, this boom can be perceived with DLF luxury project consisting of more than 1,100 homes near the capital sold out in just three days, with a quarter purchased by non-resident Indians (NRIs).
Another shift in the market dynamics to noted is role of NRIs and the luxury housing segment. The NRIs have become a major contributor in this market, accounting for nearly a fourth of total residential sales at large developers.
Demand for Luxury housing surges, Affordable housing declines
According to the recent report by property consultant ANAROCK Group, the share of luxury homes priced above Rs 1.5 crore have surged over the past five year. In the first quarter of 2024, across the top seven Indian cities, the demand for luxury homes accounted for 21 per cent of all residential unit sold, highlighting a threefold increase from the year 2019.
The share of affordable housing dropped to around 18 per cent from its previous dominant position of 37 per cent in the same period. | Representative Image/ Pexels
Meanwhile, this booming surge of luxury homes reflected affordable housing segment. The share of affordable housing dropped to around 18 per cent from its previous dominant position of 37 per cent in the same period, highlighting the current demand of the real estate market and the trends in the current scenario.
Which are the top 7 Indian cities with a demand for luxury home?
1. National Capital Region (NCR)
The NCR region has witnessed a substantial demand for luxury housing with a dominating sale in the first quarter of 2024, marking a departure from the affordable segment’s dominance in 2019. The cities include Delhi, Gurugram, Noida. In the NCR, about 39 per cent units sold were luxury homes in Q1 2024.
2. Mumbai Metropolitan Region (MMR)
This region has become a hub of luxury housing, attracting buyers seeking premium properties and world class amenities, with a significant sales record in the first quarter of 2024. The cities to the luxury homes demand in this region include Mumbai, Thane, Navi Mumbai.
3. Hyderabad, Bangalore, Pune, Chennai, and Kolkata
In this, each city has their own market dynamics with strong demands for mid to high end properties. In this, each city has their own market dynamics with strong demands for mid to high end properties. Bengaluru, Chennai, Pune and Hyderabad saw a maximum sales in mid-rage and premium housing segments in Q1 2024.
