The luxury real estate segment in India has experienced a remarkable resurgence, evidenced by a staggering 130% surge in high-end property sales during the first half of 2023 compared to the corresponding period in the preceding year. According to the latest data unveiled by CBRE South Asia, a leading real estate consultancy, a total of 6,900 luxury residences, commanding prices of Rs 4 crore and above, were successfully transacted between January and June this year, showcasing a substantial increase from the 3,000 units sold in 2022.
Beyond the domestic landscape, the non-resident Indian (NRI) community has emerged as a pivotal force in propelling the luxury real estate sector in India to new heights. The augmented flow of NRI investments into the Indian real estate market has provided a significant impetus to the surging demand for premium properties. The allure of promising high returns and the stable outlook for the Indian real estate domain have been key attractions for NRIs seeking to invest in upscale residences.
Sharing his thoughts, Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF, said, “There has been sustained sales growth across major Indian metropolises. NCR saw a sizeable jump in demand for homes with a flurry of new launches across product segments and categories. We have also observed a transformation in homebuyers’ preferences. One of the most significant trends this year has been an influx of demand for homes in the luxury and above segment. Today, luxury homes are no longer about the brick and mortar only, but the overall living experience with convenience and every amenity and facility, allowing people the time to pursue their passion.”
Analysing consumer behaviour, Indian developers are now providing projects at par with global standards, not only for Indian buyers but also catering to a renewed interest from high-net-worth individuals (HNIs) and NRIs as well. “Another reason for this pent-up demand is the long-term investment and business prospects in the uber-luxury realty market of India. The unmatched infrastructure, hassle-free service, and opulent experiences are gaining traction across corporate hubs like Gurugram, which is home to some of the most expensive commercial and residential real estate. This shift towards fostering communities as opposed to independent living has become crucial for long-term associations,” he added.
Among the cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the most prominent markets for luxury housing, accounting for nearly 90% of the total luxury home sales across the top seven Indian cities. Delhi-NCR led the way with 2,900 luxury homes sold in the first half of 2023, followed by Mumbai with 1,900 units and Hyderabad with 1,400 units.
Commenting on the same, Vivek Singhal, CEO, Smartworld Developers, said, “The luxury real estate market in India has witnessed a significant surge in 2023, as affluent buyers are increasingly seeking high-end properties that offer modern amenities and exquisite designs. This growing demand for luxury properties can be attributed to several factors. Firstly, there is a shift towards a more contemporary and sophisticated lifestyle among consumers, who are willing to invest in properties that provide a luxurious living experience. Secondly, the changing lifestyle preferences of affluent buyers are directly influencing their decision to opt for luxury properties.”
Additionally, the rapid urbanization in India has led to a greater influx of people into cities, driven by the search for better job opportunities, improved infrastructure, and higher standards of living. “As a result, there is a rise in disposable income among individuals, particularly in urban areas where luxury properties are predominantly located. Even in Smartworld, we have seen an increase in demand for luxury homes. These consumers often prioritize experiences and quality of life, which can be reflected in their housing choices,” he added.
The luxury housing segment registered a remarkable 121% year-on-year increase in sales during the April-June quarter of 2023. Total sales for the quarter reached 3,100 luxury homes, compared to 1,400 units during the same period last year.
Kalpesh Mehta, Founder, Tribeca Developers,said, “We have seen remarkable growth and demand post pandemic. The increasing number of HNIs and their desire for exclusive properties have contributed to this. There has been a surge in the number of NRIs investing in Indian real estate. Additionally, the last few years have seen a significant shift in buying behaviour. The pandemic has prompted buyers to revaluate their living spaces, with a growing preference for larger, more personalized residences. Consumers are looking for more homes that not only provide comfort and security but also cater to their evolving needs, such as dedicated workspaces, recreational amenities, green views and others.”
The extraordinary surge in luxury home sales in India during the first half of 2023 is a testament to the changing preferences of the aspirational class and the confidence of NRIs in the Indian real estate market. The rising demand for enhanced amenities and more spacious living areas, coupled with increased NRI investments, bodes well for the future of the luxury real estate sector in the country.
Source : FE