Luxury Segment Housing Records 75% Growth In 2023: CBRE report

Luxury segment housing in India recorded a 75 per cent year-on-year growth in sales in 2023, according to a report by real estate consulting firm Coldwell Banker Richard Ellis (CBRE) South Asia.

According to its report 'India Market Monitor Q4 2023', a 45 per cent year-on-year increase in unit launches was recorded in 2023.

The percentage share of the luxury segment in the overall residential unit sales stood at 4 per cent in 2023, nearly doubling its proportion of 2 per cent in 2022.

Housing units priced Rs 4 crore and above are considered as a luxury.

The report indicates robust growth in luxury unit sales across cities in 2023. Delhi-NCR recorded the highest surge registering a 197 per cent year-on-year increase. This was followed by Pune, Hyderabad, and Mumbai, registering an annual growth of about 144 per cent, 64 per cent, 24 per cent and 4 per cent, respectively.

Moving on to the overall residential sales across price categories, the CBRE report said they exceeded 322,000 units in 2023, registering a 9 per cent year-on-year growth.

Sustained momentum in demand also led developers to launch over 313,000 new housing units in 2023, a 6 per cent year-on-year increase.

Mid-end projects emerged as the leading category driving sales, recording a 45 per cent share in total sales for 2023, followed by high-end and affordable projects. Pune, Mumbai and Bangalore cumulatively accounted for 61 per cent of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for a 67 per cent share during 2023.

Anshuman Magazine, Chairman and chief executive officer (CEO) - India, South-East Asia, Middle East and Africa, CBRE, said, "In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favourable market conditions driving healthy growth in the foreseeable future."

During October-December 2023, overall, 86,000 residential units were sold, and 90,000 units were launched, during the quarter on an overall basis.

"While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive. A 75 per cent surge in luxury unit sales and a substantial 45 per cent rise in launches underscore the sector's vibrancy. The evolving market dynamics, especially in key cities like Delhi-NCR, Mumbai, Pune, Hyderabad, and Bangalore, reflect a nuanced demand for high-end residences. The positive momentum witnessed over the past couple of years in new launches and sales is likely to continue in 2024", Anshuman added.