Luxury Homes Market in India Soars with 151 Percent Increase in Sales, Predicts Continued Upswing: CBRE Report

This Real Estate News Coverage provides an in-depth look at the growth of the luxury home market in India, focusing on the post-pandemic consumer preferences that have contributed to this trend.
It also highlights the leading players in India's Luxury Home Segment - Lodha Group, DLF Limited, and Godrej Properties - and identifies Jaipur, Goa, and Chandigarh as the top future destinations for luxury homes in India.

Luxury Home Sales in India Experience Unprecedented Growth

The luxury residential market in India has shown an extraordinary surge in 2023's first quarter, following its stellar performance in 2022.
Sales in this segment have skyrocketed by 151% YoY, as reported by Coldwell Banker Richard Ellis (CBRE).
The momentum in sales and launch activity has remained consistent, fueled by a post-pandemic shift in homebuyers' preferences towards larger living spaces and enhanced amenities.

A Snapshot of the Overall Residential Market Performance

The sales of residential units across all segments have grown by 12% QoQ and YoY in FY23's fourth quarter.
This period witnessed the sale of over 78,000 housing units and the launch of approximately 81,000 units.
Mid-range developments were the most popular, accounting for 49% of the units sold, followed by affordable housing options.

The CBRE report reveals an interesting trend: more than half of the Gen Z respondents anticipate moving to a new home within the next two years, a significant increase from the 29% of baby boomers who reported the same.

Regional Breakdown of Luxury Home Sales

Regionally, the sale of luxury homes in the January-March 2023 quarter experienced varying growth rates.
Delhi-NCR led the race with an astounding 216% increase, followed by Hyderabad at 800%, Kolkata at 100%, Mumbai at 44%, and Pune, which saw an impressive 13-fold rise.

In terms of units sold, Mumbai topped the chart with 19,000 units, followed closely by Pune (18,000), Delhi-NCR (11,600), and Bengaluru (11,500).
The CBRE report indicates that Mumbai (25,300 units), Pune (16,000 units), and Delhi-NCR (11,200 units) together constituted nearly 64% of new launches during Q1 2023.

The Future of the Luxury Homes Market in India

Mr. Anshuman Magazine, Chairman and CEO of CBRE for India, Southeast Asia, Middle East, and Africa, anticipates this momentum to sustain in the forthcoming quarters.
Projects offering superior amenities and prioritizing health, safety, and clean surroundings are likely to gain an edge, reflecting evolving consumer preferences.

The growth in sales is expected to continue for projects with larger ticket sizes, particularly those priced at US$ 183,403 (Rs. 1.5 crore) and above.
The rising house mortgage rates' impact is predicted to be minimal in this segment.
Furthermore, joint ventures and collaborative development projects are anticipated to increase as prominent developers partner with local companies to penetrate Tier II cities, navigate regulatory hurdles, and better understand consumer preferences.

Leading Players in India's Luxury Home Segment

The luxury home segment in India is dominated by three significant players:

1. Lodha Group: Known for its extravagant residential projects, Lodha Group has made its mark in the luxury housing market, particularly in Mumbai.

2. DLF Limited: With its roots in Delhi, DLF Limited has an extensive portfolio of luxury residential properties across India

3. Godrej Properties: A part of the esteemed Godrej Group, Godrej Properties has a strong foothold in the luxury housing market, with a focus on sustainable and innovative construction.

India's Future Destinations for Luxury Homes

As the luxury housing market in India continues to expand, several cities are emerging as future hotspots for luxury homes:

1. Jaipur: Known as the 'Pink City,' Jaipur offers a unique blend of royal heritage and modern infrastructure. It is increasingly attracting luxury real estate developers and buyers.

2. Goa: Famous for its beaches and laid-back lifestyle, Goa is fast becoming a preferred destination for luxury homes, with a surge in demand for sea-facing villas and apartments.

3. Chandigarh: The well-planned city of Chandigarh, with its spacious layout and green spaces, is drawing the attention of luxury home buyers and developers.

ThinkWithNiche News Summary, the luxury home market in India is on an upswing, with sales surging by 151% YoY in Q1 2023.
This growth, driven by evolving consumer preferences post-pandemic, is expected to continue in the coming years.
Top real estate players such as Lodha Group, DLF Limited, and Godrej Properties are leading the way, while cities like Jaipur, Goa, and Chandigarh are emerging as future hotspots for luxury homes.