The sale and supply of luxury homes reached a new high in Q1 2022, with the highest sales and supply in three years driven by pent-up demand, benign interest rates, and stable prices, as per a report by Anarock property consultant.
Luxury property accounted for 12% of overall sales in Q1 2022, up from 7% in Q1 2019, as ultra-high-net-worth individuals hurried to purchase larger homes to accommodate the need for more room during the pandemic.
“The new supply in the luxury category in Q1 2022 is the highest in a given quarter in the last three years. As per Anarock Research, as many as 13,330 units were launched in the luxury category across the top 7 cities. The preceding quarter of Q4 2021 saw the second highest supply in the category of approximately 9,350 units, and Q1 2020 saw only 4040 new units, “said Anuj Puri, Chairman, Anarock Group.
“Luxury homes are no more about brick and mortar but the overall living experience, an exclusive address that is complimented with an unmatched lifestyle, provided within the privacy and comfort of one’s home. One of the most significant trends this year has been an influx of demand for homes in the luxury and super luxury segments, “said Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Home Developers Ltd.
Earlier this year, DLF Limited, India’s largest listed real estate company, announced sales worth Rs. 1500 crore from the first phase of its highly anticipated luxury residential project in New Delhi, ONE Midtown.
Experts say that in the luxury segment, demand started picking up significantly, right after the first wave of induced lockdown ended.
“The pandemic has amplified the need and desire for bigger homes, with private lawns and open space, exclusive rooms for work and study from home, entertainment and lifestyle requirements like a gym and a swimming pool,” said Akash Puri, Director-International, India Sotheby’s International Realty.
Sotheby’s International Realty India, which deals in luxury properties, clocked Y-o-Y growth of more than 30% consecutively for the last two years—2020 and 2021 and it expects to close this year with even better sales numbers.
“There is a rising need for luxury housing in the north-south region as compared to the eastern and western parts of India. FY21-22 was a year of new innovations, allowing us to push the envelope and focus more on digital performance within opulent, functional homes,” said Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd.
New launch data by ANAROCK indicates the increased new supply in the luxury segment pricing and that there has been a 230% jump in Q1 2022 as against the pre-pandemic period of Q1 2020.
Developers say that most of the buyers are HNIs who are looking for a lifestyle upgrade.
“Rising demand for all kinds of luxury real estate, like luxury and ultra-luxury condominiums and villas, has taken a lion’s share of the market and sparked a desire for high-end amenities, wide-open spaces with a serene and peaceful environment,” said Amarjit Bakshi, CMD, Central Park.
Source : ET