Luxury housing sales increased by about 151 percent annually in the January-March 2023 quarter, according to a report by real estate consultant CBRE.
The report, India Market Monitor Q1 2023, further highlighted a 12 percent quarter-on-quarter as well as annual growth in overall sales of residential units across all segments during the quarter.
Delhi-NCR led the luxury segment housing sales with a 216 percent growth in the first quarter over Q1 2022.
The post-pandemic uptick in ownership of luxury housing results from homebuyers looking for larger spaces and a higher preference for home ownership with better amenities, the report said.
Apart from Delhi-NCR, the study noted that cities including Mumbai, Hyderabad, Pune and Kolkata also saw high traction for high-end units.
"A total of over 78,000 housing units were sold in Jan-Mar 2023 and about over 81,000 units were launched during this period. Out of this, 49 percent share was recorded in the mid-end category in units sold, followed by affordable/ budget projects," the report said.
However, luxury sales in Bengaluru remained unchanged in Q1 2023 from the same quarter in 2022.
A surge in housing sales
Overall housing sales in Mumbai surged by 44 percent, Hyderabad by about 800 percent, Kolkata by 100 percent and Pune by nearly 13 times annually for the quarter ended March.
Mumbai, Pune and Delhi-NCR had a 62 percent cumulative share in sales of housing units in the same quarter.
The report pointed out that Mumbai led in the number of total housing units sold at 19,000 units, followed by Pune (18,000 units), Delhi-NCR (11,600 units) and Bengaluru (11,500 units).
On the new launches front, Mumbai (25,300 units), Pune (16,000 units) and Delhi-NCR (11,200 units) collectively accounted for about 64 percent share during the quarter under review.
"We foresee demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. The momentum is expected to continue in the coming quarters as well," said Anshuman Magazine, chairman and CEO. India, South-East Asia, Middle East and Africa, CBRE.
The outlook
The report suggested that strong sales and launch momentum are expected in the first half of 2023 with a minor dip in the middle of the year. However, its impact could be cushioned by the festive season.
"Projects in the higher ticket range (Rs 1.5 crore and above) would continue to see traction in sales as the market has witnessed a spate of new launches in this bracket of late. Additionally, the impact of rising home mortgage rates would be limited on this segment," the report said.
The number of joint ventures and joint development initiatives is expected to increase as large developers enter tier-II cities as they partner with local players to manage regulatory hurdles and understand consumer preferences, the report suggested.
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