India’s luxury housing sales surge 151% in Q1 2023: CBRE report

New Delhi: India’s luxury housing sales rose a whopping 151% year-on-year (YoY) the first quarter of calendar 2023, according to a report by real estate consulting firm CBRE South Asia Pvt. Ltd.

Sales in Delhi-NCR rose 216%. Mumbai followed with a growth of 44%, while Hyderabad saw a surge of about 800%, Kolkata 100%, and Pune nearly 13 times during the same period.

The post-pandemic era has seen an uptick in the ownership of luxury homes, with buyers looking for larger spaces and better amenities, according to the report. Among the cities, Delhi-NCR, Mumbai, Hyderabad, Pune, and Kolkata recorded the maximum traction for high-end units.

Overall, there was a 12% quarter-on-quarter as well as year-on-year growth in sales of residential units across all segments during the January-March 2023 period, with over 78,000 housing units sold and about over 81,000 units launched during this period.

Mid-end projects accounted for 49% share in units sold, followed by affordable/budget projects.

Mumbai emerged as the leader in the total number of housing units sold at 19,000 units, followed by Pune at 18,000 units, Delhi-NCR at 11,600 units, and Bangalore 11,500 units. In terms of new launches, the gateway cities, Mumbai (25,300 units), Pune (16,000 units), and Delhi-NCR (11,200 units), collectively accounted for about 64% share during the first quarter of 2023.

Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “We foresee demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. The momentum is expected to continue in the coming quarters as well. Projects with better amenities, focus on health and safety, and clean surroundings are likely to gain an edge amidst evolving consumer preferences.”

CBRE anticipates strong sales and launch momentum in the first half of 2023, with a minor tapering in activity likely in the middle of the year. Capital value appreciation trends are expected to vary based on the segment, city/micro-market, unsold inventory levels, and even project attributes, with developers likely to be cautious about raising prices lest it impacts homebuyers’ purchasing power. The higher ticket range projects ( ₹1.5 crore and above) are expected to continue to see traction in sales, with large developers foraying into tier-II cities expected to lead to a higher number of joint ventures and joint development initiatives.