Delhi-NCR leads with ~10,500 luxury unit sales during the year
National – January 15th, 2025 – CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, announced the findings of its report, ‘India Market Monitor Q4 2024 – Residential’. The report highlights that India’s luxury housing segment (units priced at INR 4 crore and above) recorded a ~53% Y-o-Y sales growth in CY 2024 across top seven cities. The segment also recorded significant unit launches, registering ~52% Y-o-Y growth during the year.
In CY 2024, total luxury housing sales touched ~19,700 units, recording ~53% Y-o-Y growth. Delhi-NCR, Mumbai, and Hyderabad emerged as the key markets, collectively contributing over ~90% of the luxury housing unit sales across the top seven cities. Delhi-NCR led the market, reflecting a strong 90% Y-o-Y growth, followed by Mumbai, recording a 32% Y-o-Y increase. Moreover, Pune witnessed significant demand in the luxury housing segment, recording ~825 units sales in 2024.
The number of new launches in 2024 in the luxury segment reached ~24,180, recording a ~52% Y-o-Y increase. In line with the trajectory of luxury housing unit sales, Delhi-NCR led the new launches, followed by Mumbai and Hyderabad. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023.
The rising demand for luxury housing is largely driven by a growing number of affluent buyers seeking spacious homes with premium amenities that cater to their multifaceted lifestyles. Furthermore, this demand has been bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.
A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast.
India’s overall residential market performance in CY 2024
India’s residential real estate market demonstrated positive activity throughout CY 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This momentum pushed annual sales to surpass ~300,000 housing units for the second year in a row. To meet the rising demand, developers launched over ~280,000 new residential units during the year. Mid-segment projects dominated sales with a 40% share, followed by high-end and affordable segments*. Together, Mumbai, Pune, and Bengaluru accounted for ~64% of the total sales in 2024, underscoring their significance in the residential market.
During the Oct-Dec’24 quarter, ~75,300 sales of housing units was recorded, while the number of new launches during the same period stood at ~67,800 units. In 2024, Mumbai, Pune, and Hyderabad collectively accounted for ~63% of the total unit launches. During Oct-Dec’24, Mumbai, Pune, and Delhi-NCR cumulatively contributed ~66% to the overall sales. Additionally, unit launches in Oct-Dec’24 saw Mumbai, Pune, and Bengaluru capturing a combined share of ~60%. Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, ” The residential real estate market is driven by strong fundamentals underpinned by robust end-user demand.
We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market. However, with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence”
Residential Outlook
Strong Market Fundamentals:
- The residential real estate market is currently backed by robust end-user demand and healthy investor participation, indicating strong market fundamentals for growth.
- This strong demand is expected to keep both sales and new launches steady.
Impact of Elevated Capital Values: Given the elevated capital values and an uncertain global economic landscape, homebuyers may start adopting a wait-and-watch approach to purchasing decisions.
High-End and Premium Segments: Demand for high-end and premium housing (priced between INR 1.5 to 2 crore and INR 2 to 4 crore) is expected to remain strong.
Shift in Market Dynamics:
- Traditional mid-end markets such as Noida, Bengaluru, Pune, and Chennai are increasingly transitioning towards high-end developments.
- This shift reflects the evolving preferences of buyers and the growing demand for luxury properties in these regions.
Long-Term Outlook:
- The gradual shift towards high-end offerings suggests India’s premium and luxury housing markets are expected to remain elevated in the coming years.
