The share of luxury home sales in India has tripled in five years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Luxury housing is witnessing a remarkable surge in India, reflecting the country’s growing penchant for opulence across various sectors. According to data by Anarock Research, out of 130,170 units sold across the top 7 cities in the first quarter of 2024, luxury homes priced above ₹ 1.5 crore accounted for a notable 21% share, totalling around 27,070 units.

This is a threefold surge from the first quarter of 2019, where luxury homes constituted merely 7% of sales.

In Delhi NCR, out of around 15,645 units sold in the first quarter of 2024, luxury homes priced above ₹ 1.5 crore dominated sales, with approximately 6,060 units sold, comprising 39% of the total.

According to the latest data from Anarock Research, the Indian residential property sector continued its relentless growth momentum in the first quarter of 2024, witnessing notable increases in both sales and new launches.

Anuj Puri, Chairman of the ANAROCK Group said that the mid-range and premium housing segment continued to rule the roost with approximately 76,555 units sold in the period – a near-59% overall sales share. “Affordable housing is nowhere near to recouping its stellar sales share in 2019,” said Puri.

City-wise analysis unveils interesting trends, with NCR witnessing a significant shift from the affordable segment’s dominance in Q1 2019 to luxury housing commanding the highest sales share in Q1 2024. On the contrary, Kolkata maintains its preference for affordable housing.

Puri attributes the growing traction in luxury housing to the increasing demand for larger homes in prime locations by branded developers. In contrast, the retreat of affordable housing is primarily due to lower ticket sizes. He emphasises that any revival in the affordable housing sector would depend on further government incentives and support.

In terms of new launches, approximately 28,020 luxury homes were launched in Q1 2024, constituting 25% of the total, while affordable housing saw a decline to 18% of the total new launches.

Affrodable Vs Luxury – 5-year trend

In 2019, luxury homes constituted approximately 11% of the overall new supply across the top 7 cities. Fast forward to Q1 2024, this share has skyrocketed to 25%.

In 2019, a modest 25,770 units were launched in the luxury segment for the entire year. However, in just the first quarter of 2024, a staggering 28,020 luxury homes were introduced.

On the other hand, affordable housing has witnessed a stark reversal in its trend. In 2019, affordable homes accounted for 40% of the overall new supply additions, totaling approximately 2.37 lakh units across the top 7 cities.

However, data from Q1 2024 indicates a sharp drop in its supply share, plummeting to a mere 18% of the total new launches.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow