Luxury apartments priced Rs 4 crore and above recorded a 75% year-on-year (y-o-y) growth in sales in 2023, a report said on Wednesday.
The percentage share of the luxury segment in the overall residential unit sales stood at 4% in 2023, nearly doubling its proportion of 2% in the previous year, said a report by CBRE South Asia.
Among the major 7 cities, Delhi-NCR recorded the highest growth with an annual increase of 197%. This was followed by Pune, Hyderabad, and Mumbai, posting a yearly growth of about 144%, 64%, 24% and 4% respectively. New launches also kept pace with the sales, recording a 45% y-o-y growth in the reported year.
The overall residential sales across price categories exceeded 322,000 units, registering a 9% y-o-y growth. Sustained momentum in demand also led developers to launch over 3,13,000 new housing units in 2023, a 6% increase over the previous year. Meanwhile, mid-end projects emerged as the leading category driving sales, recording a 45% share in total sales for 2023, followed by high-end and affordable projects, the report said.
Pune, Mumbai and Bangalore cumulatively accounted for 61% of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for a 67% share during the year, it said.
During the October to December period, overall 90,000 units were launched and 86,000 residential units were sold. The report further highlights that the new unit launches recorded around 22% y-o-y increase and about 26% sequential growth during the October to December period.
Premium and luxury segments accounted for about 10% and 4% shares, respectively, during the said three-month period. Moreover, Pune recorded the highest residential sales with a 24% share, followed by Mumbai with 21% share. Delhi-NCR and Hyderabad accounted for about 17% and 15% of the market, respectively.
In terms of unit launches during the same period, Mumbai took the lead with a 27.5% share, closely followed by Hyderabad with 26.9%, and Pune with 19%. Mid-end segment accounted for around 36% share in unit launches, trailed by high-end segment at 33% and premium category at 14% during this period.
Anshuman Magazine, chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said, “In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favourable market conditions driving healthy growth in the foreseeable future. While regional dynamics may lead to fluctuations in capital values, the overall outlook remains positive.”