Luxury Housing Sky-Rocketing: A Record Spurt In New Launches Across India

The Indian residential market has witnessed an unusual shift during 2024, which hails into luxury housing. Although there have been eyebrow-raising increments in luxury property launches at a year-on-year(y-o-y) increase of 117 per cent, that states a thirst for elitism homes. In this regard, Delhi NCR, Mumbai, and Bengaluru are the most coveted cities in the country and have snapped most of the action in the segment.

Delhi NCR was an exception with around 49 percent of the luxury housing stock in India. Mumbai and Bengaluru also played crucial roles with these two putting together forming a sizeable share in the new supply for this type of segment.

Delic NCR

Delhi NCR was the biggest gainer in luxury housing sales in India mainly on account of excellent results trickling in from Gurgaon. Even the corridor for Dwarka Expressway was healthy wherein sales came in from known players like Max Estates and Godrej Properties. In fact, the luxury space accounted for 45 per cent of sales in Delhi NCR for the first nine months of 2024.

The average values of residences in the region have shown the highest annual growth percentage. On average, the values increased to around 19 per cent region-wide. This has resulted in a cluster around Greater Noida where, till recently premium new developments have driven prices sharply up from the hitherto relatively affordable proposition of housing.

Mumbai

Across the city, sales were a bit softer overall for Q3 2024, but that's far from the case in the luxury market. Thane and Navi Mumbai led that trend which is now much better supported with infrastructural connectivity. Mumbai capital values grew 5.4 per cent y-o-y despite a stable demand situation. Developers were optimistic about the luxury segment but still rolled out a series of high-value projects when input prices shot through the roof.

Bengaluru

The mid-income housing segment of Bengaluru also became a luxury product. Residential prices in the city rose by 14 per cent y-o-y with Whitefield and Bellary Road the maximum draws. Rising Luxury Launches in Bengaluru; luxury projects target the higher strata of consumers. High-income groups will form a massive share of the portfolio of luxury housing in India.

Change in Preference Fuelling Demand

This brings forth a new pattern in the pattern of taste of consumption. With enhanced disposable incomes, along with the ascending aspirations of consumers, people demand spacious houses that afford better amenities. Many new changes due to the pandemic in the form of a desire to stay at spacious homes with a much better work-life balance help propel this trend further ahead. Apart from that, the developers have strategised well and are aiming at customised possessions that are techno-friendly for exclusiveness with quality.

Sales of luxury housing have increased more than one hundred per cent in the first nine months of 2024 compared to the corresponding period of 2023. More than 42,600 units were launched which cost over Rs 3 crore, making it a 117 per cent surge on the year-on-year basis.

Prices of luxury apartments in major cities have appreciated 3 per cent to 20 per cent per annum with Delhi NCR witnessing the highest price appreciation at 19 per cent in 2024 City Share-Delhi NCR, Mumbai and Bengaluru accounted for 58 per cent of all luxury launches.

The heavy economic growth, urbanisation, as well as fast-rising consumer confidence created an expectation that luxury real estate would continue to keep up its momentum. Quality projects at prime locations would be ensured by prime developers, hence further helping the growth trajectory of the segment.