Luxury housing in India experienced a remarkable surge in 2023, with sales soaring by 75% year-on-year, according to CBRE South Asia Pvt. Ltd. The luxury segment, encompassing units priced at INR 4 crore and above, witnessed a substantial 45% increase in unit launches. Notably, the luxury sector's share of overall residential unit sales doubled from 2% in 2022 to 4% in 2023. Delhi-NCR led the growth with a staggering 197% year-on-year surge, followed by Pune, Hyderabad, and Mumbai. The market's resilience was further evident in the balanced sales and launches during the last quarter of 2023.
The luxury housing market in India has witnessed an impressive growth, as reported by CBRE South Asia Pvt. Ltd. According to their latest findings, the luxury segment, comprising units priced at INR 4 crore and above, experienced a remarkable 75% year-on-year growth in sales throughout 2023. Notably, there was also a significant increase of approximately 45% in the number of units launched during the same period.
In a noteworthy trend, the luxury housing sector's share in the overall residential unit sales doubled from 2% in 2022 to 4% in 2023, indicating a notable shift in consumer preferences towards upscale living spaces.
The report from CBRE South Asia Pvt. Ltd. also shows a high growth trend in luxury unit sales across various cities in India. Delhi-NCR led the rise with a 197% year-on-year increase, followed by Pune, Hyderabad, and Mumbai, which saw annual growth rates of approximately 144%, 64%, 24%, and 4%, respectively. The surge in new launches remained in tandem with sales, witnessing a substantial 45% year-on-year growth in 2023.
While the overall residential sales across different price categories surpassed 3,22,000 units in 2023, marking a respectable 9% year-on-year growth, developers also responded to sustained demand by introducing over 3,13,000 new housing units during the same period, reflecting a 6% year-on-year increase.
Mid-end projects emerged as the top performers in terms of driving sales, capturing a commanding 45% share of the total sales in 2023, closely followed by high-end and affordable projects. Pune, Mumbai, and Bangalore collectively accounted for 61% of the total sales, while unit launches in Mumbai, Pune, and Hyderabad dominated with a 67% share in 2023.
During the last quarter of 2023, approximately 86,000 residential units were sold, while 90,000 units were launched, showcasing a balanced market activity. The report also notes a substantial 22% year-on-year increase and a 26% quarterly growth in new unit launches during this period. Premium and luxury segments accounted for 10% and 4% shares, respectively, during October-December 2023.
Pune emerged as the leader in residential sales during the quarter, securing a 24% share, closely followed by Mumbai with approximately 21%. Delhi-NCR and Hyderabad also made significant contributions, accounting for about 17% and 15% of the market, respectively.
In terms of unit launches during the same period, Mumbai led the charts with a 27.5% share, followed closely by Hyderabad with 26.9% and Pune with 19%. The mid-end segment dominated the launch landscape, capturing around 36% of the share, trailed by the high-end and premium categories at 33% and 14%, respectively.
The surge in luxury housing sales reflects evolving consumer preferences and high market dynamics, signalling promising opportunities for real estate developers and investors in India's upscale residential sector.
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