Luxury home sales witness rebound post covid2 min read . Updated: 09 Nov 2020, 07:20 PM IST
- The covid period has created a reset in the luxury residential market, and sales are better compared to even pre-covid levels
- Bengaluru-based Embassy Group has homes at a wide price range from ₹5.5 crore to ₹20-25 crore
BENGALURU : Luxury home sales are seeing a rebound, after a prolonged dry patch, largely led by ready inventory, stable prices and festive offers, and stamp duty cut in states like Maharashtra.
The pace of recovery however remains slower than sales of lower priced homes, which saw sharp uptick in the September quarter and in October.
The covid period has created a reset in the luxury residential market, and sales are better compared to even pre-covid levels, with buyers looking at bigger and upgraded living spaces, said Reeza Sebastian, president- residential, Embassy Group.
Bengaluru-based Embassy Group has homes at a wide price range from ₹5.5 crore to ₹20-25 crore.
“Both demand and sales are stronger compared to pre-covid. Ready- to-move in was also a factor in driving sales. Post covid, homebuyers are also becoming more discerning about which developer they are buying from and many are also looking at managed residences. At Embassy, we focused on completing these projects in the last 1.5 years and we are seeing much better traction now," Sebastian added.
Home sales saw a sharp recovery in the July-September quarter in all top cities compared to the preceding quarter, with Kolkata and Ahmedabad clocking maximum rise in sales, followed by Mumbai Metropolitan Region (MMR) and Bengaluru.
Mumbai-based Lodha Group said it has clocked ₹1,000 crore of sales in October alone, led by ready homes. Bengaluru developers said 60-65% of customers still prefer homes that are either ready or would be completed in six months, to avoid risks and delays.
"We have seen a considerable spike in the luxury and premium segment with over ₹400 crore sales out of its ₹1000 crore sales in October. With the latest stamp duty reduction, lowest interest rates, and an increase in demand for ready homes, we are seeing exceptional demand including NRI audiences," said Prashant Bindal, chief sales officer, Lodha Group.
Lodha’s luxury portfolio is priced between ₹5 crore and ₹50 crore, most of which are in south-central Mumbai.
Separately, its London-based arm Lodha UK recently sold a penthouse at London’s No. 1 Grosvenor Square for GBP 140 million, in the most expensive real estate sale transaction this year.
“On a per sq ft basis, at GBP 9200 per sq ft (almost ₹9 lakh per sq. ft.), it is the most expensive home ever sold in London," Gabriel York, co-CEO of Lodha UK said in a statement.
South-central Mumbai locations witnessed luxury home sales worth ₹500 crore in October, according to estimates by Anarock Property Consultants, compared to ₹150 crore of sales in the corresponding period in 2019.
Anuj Puri, chairman, Anarock said the limited period stamp duty cut of 3% up to December and 2% between January-March 2021 has had an impact even in Mumbai’s hyper-expensive luxury locales.
For Gurugram-based M3M Group, around 40% of luxury inventory is priced at ₹1.2 crore, 40% at ₹2.5 crore and 20% at ₹5 crore and above, and sales have also been in a similar proportion.
Pankaj Bansal, director, M3M Group said the customer profile in Gurugram-National Capital Region is changing with price not being the only factor.
“Earlier, it was mainly people who lived in Delhi bought apartments in Gurugram for investment but now we have corporate and startup CXOs buying in our projects," Bansal said.