The luxury housing segment seems to be performing remarkably well post the pandemic, with overall sales rising steeply across the top 7 cities. Recent ANAROCK Research data finds that of approximately 1.84 lakh units sold in these cities in H1 2022, about 14 per cent (approximately 25,700 units) were in luxury homes. Contrastingly, of 2.61 lakh units sold in the whole of 2019, just 7 per cent (approximately 17,740 units) were in the luxury category. Approximately 25,680 luxury homes were sold across the top 7 Indian cities in H1 2022, against 17,740 units in 2019; in H1 2022 itself, sales exceed those in entire 2019. The market watchers have been predicting the rise of the luxury segment for a while and the many say the pandemic has provided the desired push. National Capital Region (NCR) and MMR have led luxury homes sales with HI 2022 seeing around 17,830 units sold in these two cities alone.
In terms of overall sales share, in NCR, the sales share rose to 12 per cent in H1 2022, from 4 per cent in 2019.
Anuj Puri, chairman, ANARO-CK Group, says, “Even though the typical buyers in this budget segment were not as impacted by the pandemic as the rest, HNIs are conscious of cost. Discounts by developers made luxury properties very attractive for these buyers and NRIs have also been snapping .up luxury homes in India because of the favourable exchange rate.” Encouraged by this healthy demand for luxury offerings, developers have stepped up new supply in the luxury segment, launching over 28,000 units across the top 7 cities in the first six months of 2022. NCR comes second with around 19,470 luxury units currently available for sale. In Hi 2022, 4,160 units were sold in this segment. Industry play-ers too seem upbeat with the grow-ing demand numbers and have been ramping up the supply side that can cater to the increased demand.
Talking about the same Amarjit Bakshi, CMD, Central Park, shares, “Luxury houses have emerged as a lifelong desire for a majority of the populace living in many cities across India. The buyers have chosen the segment which defines the concept of luxury living offering the quintessential global lifestyle and impeccable hospitality services, catering to the evolved take of the globally travelled Indians. It is the most prominent factor for the increase in sales of the luxurious housing segment, for the first half of the calendar year 2022.”
Adding further, Aakash Ohri, group executive director and chief business officer, DLF Ltd, adds, “Since the beginning of 2021, there has been sustained sales growth across major Indian metropolises, but NCR saw a sizeable jump in demand for luxury homes. In the past two years, the housing market in Gurugram has emerged as a hot real estate investment destination, with annual price growth reaching record highs. Today, luxury homes are no more 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.” The demand for luxury homes within the real estate market is currently surging due to the safe and secure environment a luxury home offers for leading a luxurious and carefree way of life.
- 1.84 lakh units sold in H1 2022, about 14% (approximately 25,700 units) were in luxury homes
- In NCR, the sales of luxury homes share rose to 12% in H1 2022, from 4% in 2019
- Luxury homes sales in H1 2022 were 17,830 units (in MMR and NCR)
- In 2019, these two regions accounted for 11,890 luxury homes sold.
(Source: ANAROCK Research)
“Homebuyers today perceive security in a variety of ways. Given the circumstances, it makes sense to assume that the luxury housing segment in India is going to remain strong over the next few years. Because of the abundance of lavish amenities and the necessity for full-fledged security and safety that they provide,” says Santosh Agarwal, CFO and executive director, Alpha Corp. The re-cent demand in the luxury segment is a testament to resilient consumer mindset of giving impetus to the experiential aspect of life. Vivek Singhal, CEO, Smartworld Developers, asserts, “Consumers have become discerning and with global exposure, their expectation of a luxury home has been redefined. The amenities that were considered a luxury at one point in time are now table-stakes. Hence developers need to be more innovative in terms of their offering to be able to meet consumer expectations. Driven by strong consumer insight, developers are today offering taste-fully designed products in the newer micro-markets of Delhi-NCR.”
Talking about the consumer preferences and growing demand, Parveen Jain, CMD, Infratech, explains, “Luxury segment is on the raise and there has been a constant demand in the market. Homebuyers are today more conscious of the product and offerings. In the recent past many new launches have happened in Gurugram the segment. We are bullish that the segment will continue to grow beyond. And there could well be a robust sup-ply lined up in the days to come.”
Adding further, Ashok Singh Jauna-puria, MD and CEO, SS Group, says “The demand for luxury homes has been steadily improving post-pandemic era, as they live up to the promise of adequate space, convenience, wellness, security, and grandeur. HNIs and NRIs are makia, significant investments in luxury housing. The demand for luxury housing can also be attributed to the inherent need, after the pandemic, to own a home where one can look forward to lead a retired life with all amenities.”
Gurugram continues to be the luxury hub and attract homebuyers and investors alike. “The demand for bigger and spacious homes post-Covid has accelerated luxury sales. The NCR region, more specifically, Gurugram, is credited to be the leading region in this domain and taking a lion’s portion in the luxury housing purchases. The sales of units in the first half of 2022 in comparison to that of 2019 are pretty impressive,” concludes Nayan Raheja of Raheja Developers.
So are you looking for a luxury abode? Seize the opportunity now!