Delhi-NCR has emerged as the preferred choice for the buyers of luxury homes as the region recorded the highest sale of apartments prices above Rs 4 crore during the first half of 2023, according to an analysis by property consultant CBRE. With sales of 2,900-unit, Delhi-NCR reported a 205%Y-o-Y increase, followed by Mumbai, which recorded sales of 1,900 units, an 18% Y-o-Y growth, while sales in Kolkata stood at 200 units, a 100%Y-oY increase.
"We anticipate a stronger second half of 2023 in the residential market, supported by factors such as a healthy supply pipeline, the approaching festive season, and stabilizing mortgage rates. The premium and luxury segments are expected to perform well with new launches,“ said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
The surge in demand for luxury housing was primarily driven by a growing preference for enhanced amenities and more spacious living areas. The rise in NRI investments in the Indian real estate market has also significantly contributed to the heightened demand for luxury properties.
Hyderabad recorded the highest percentage increase in sales on a Y-o-Y basis with nearly 14-fold growth with total sales of 1400 units. This was followed by a nearly six-fold increase in sales in Pune and over three-fold jump in Delhi-NCR on a Y-o-Y basis. The luxury housing segment in India maintained strong sales momentum, registering a 130% Y-o-Y increase in Jan-Jun’23 period. Total sales of luxury units during Jan-Jun’23 period stood at 6900 compared to 3000 units during the same period last year.
Overall, in the residential sector, during Jan-Jun’23 period, a total of 154,000 units were sold, and over 151,000 new units were launched across all categories. During the Jan-Jun’23 period, sales increased by about 3% compared to the same period a year ago, whereas new launches recorded a growth of 9% Y-o-Y basis, highlighting a substantial rise in the newly launched residential properties compared to the corresponding period in the previous year.
In terms of total unit launches in India, Mumbai, Pune, and Hyderabad dominated the activity, capturing a significant cumulative share of 65% in Jan-Jun’23. This indicates a strong market dominance by these cities when it comes to introducing new residential projects.
Despite global macroeconomic headwinds, the residential sector is likely to witness healthy sales momentum due to stabilizing interest rates and the upcoming festive season. Projects in the premium luxury segment would continue to witness healthy traction amidst a spate of new launches as mortgage rates likely to have a relatively muted impact on demand from this segment.
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