Sales of luxury housing robust in top 7 cities, anticipate strong festive sales this year: Report

Indian luxury housing segment comprising units priced at ₹4 crore and above registered a 97 per year-over-year increase in sales during the January–September 2023 period, according to real estate firm CBRE. The total sales of luxury units stood at around 9,200, compared with 4,700 units during the same period last year.

Further, building on the robust sales performance witnessed throughout the first nine months of 2023, it is anticipated that 2023 festive housing sales are set to break a 3-year record, exceeding the 1,50,000-unit mark. 

Among the leading cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the top three markets, accounting for nearly 90 per cent of the total luxury housing sales across the top seven cities. Delhi-NCR topped with a share of about 37 per cent, Mumbai- 35 per cent, Hyderabad – 18 per cent and Pune – 4 per cent.

A similar trend prevailed during the July-September quarter in the luxury housing segment across the top seven cities, registering a 19 per cent y-o-y increase in sales. The quarter witnessed total sales of approximately 2,400 units, compared with about 2,000 units during the same quarter in 2022.

Overall residential sales across price categories exceeded 2,30,000 units during January-Sep’23, registering a y-o-y growth of about 5 per cent. According to the report, sustained momentum in demand led developers to launch over 2,20,000 new housing units during the same period. 

Festive season boom

In January-September, residential sales were dominated by mid-end projects, accounting for almost half of the total sales, followed by high-end and affordable projects. Mumbai, Pune, and Bangalore cumulatively accounted for 62 per cent of sales.

“We anticipate the overall housing market to be further bolstered by the ongoing festive season in the coming months of 2023. With the pause in the interest rate cycle, incentives and schemes offered by developers in the festive season are likely to boost sales further,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

In fact, the October-December quarter is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts, he added. Both sales and new launches could reach a ten-year high in 2023, touching or even exceeding the 3,00,000-unit mark.