Out of 1,16,220 units launched in Q3 2023 in the top seven cities across various budget categories, 31,180 units, or about 27 percent, were in the luxury category (priced over Rs 1.5 crore), according to a report by real estate consultant ANAROCK.
This is the highest quarterly luxury supply entering the market in the last five years.
Back in Q3 2018, the supply share of luxury housing was just 9 percent with 4,590 units out of a total of 52,120 units launched across budget segments, the report said.
The third quarter of 2023 saw Hyderabad churn out the highest new luxury supply with 14,340 units, followed by Mumbai Metropolitan Region (MMR) with 7,830 units. In terms of overall luxury share, Hyderabad clocked in 46 percent and MMR 25 percent.
"In the pre-Covid edition of the survey of H1 2019, 9 percent of respondents preferred luxury homes priced over Rs 1.5 crore while in the current edition of H1 2023, this share has risen to 16 percent,” Prashant Thakur, Regional Director & Head – Research, ANAROCK Group added.
The affordable housing segment shrinks
The report said that the share of affordable housing, or homes priced at or under Rs 40 lakh, has reduced further to 18 percent in Q3 2023.
Of the 1,16,220 homes launched in the quarter, about 20,920 were in the affordable category. In the corresponding period in 2018, this segment’s supply share was a whopping 42 percent with 21,900 units out of a total of 52,120 units launched across the top seven cities.
IN Q3 2023, the National Capital Region (NCR) witnessed a new luxury supply of 3,870 units in Q3 2023 against 930 units in the corresponding period of 2018.
About 1,940 luxury units were launched in Pune in Q3 2023, while Bengaluru saw 1,710 new luxury unit launches in Q3 2023, against 290 units in the corresponding period of 2018.
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