India's luxury real estate market expands rapidly
Date
5/13/2024 3:19:47 AM
(MENAFN) A recent report from Anarock Group, a prominent Real estate consultancy, has shed light on the remarkable surge in the sale of luxury homes in India over the past half-decade. According to the findings, luxury residences, defined as properties priced above 15 million rupees (USD179,650), now constitute a significant portion of residential transactions in the seven largest Indian cities. Specifically, in the first quarter of 2024, luxury homes accounted for 21 percent of all units sold, marking a substantial increase of 7 percent since the corresponding period in 2019.
This uptrend in the luxury housing sector coincides with India's robust economic growth and heightened demand from non-resident Indians (NRIs). Illustrating this trend, a recent luxury project by DLF near New Delhi witnessed overwhelming demand, with all of its more than 1,100 units snapped up within just three days, even before construction commenced. Notably, NRIs played a significant role in this surge, acquiring a quarter of the available units.
Conversely, the proportion of affordable housing units sold has dwindled, dropping from 37 percent to 18 percent in the same timeframe. Meanwhile, the mid-range and premium housing segment, encompassing homes priced between Rs 4 million and Rs 15 million, has retained its dominance, accounting for nearly 59 percent of total sales.
Anuj Puri, Chairman of Anarock, attributed the burgeoning luxury housing market to the increasing demand for spacious residences crafted by reputable developers in prime locations. Puri also noted the challenges faced by the affordable housing segment, indicating that it has yet to reclaim the substantial market share it held in 2019. As India's real estate landscape continues to evolve, stakeholders are closely monitoring these shifts and adjusting their strategies to meet the evolving demands of discerning homebuyers.
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