Hyderabad sees about 800% growth in luxury residential segment in Q1 of 2023

HYDERABAD: The luxury residential segment witnessed continued momentum in sales and launch activity. According to a report ‘India Market Monitor Q1 2023’ released by real estate consulting firm CBRE South Asia, Delhi-NCR, Mumbai, Hyderabad, Pune and Kolkata saw the maximum traction for high-end units.

Sales in Delhi-NCR surged by over 216%, Mumbai by 44%, Hyderabad by about 800%, Kolkata by 100% and Pune by nearly 13 times on a Y-o-Y basis for the quarter ending Jan-Mar’ 23. In terms of number of units, Delhi saw 1,900 units sold (up from 600), Mumbai 1,150 units (up from 800) and Hyderabad 430 units (up from 50 units). In all, 4,000 luxury units have been sold during the first quarter, up from 1,600 units last year.

According to the report, a total of over 78,000 housing units were sold in Jan-Mar 2023 and about over 81,000 units were launched during this period. Out of this, 49% share was recorded in the mid-end category in units sold, followed by affordable and budget projects.

The need for owning a house has been accentuated due to the uncertainty that the pandemic ushered. Mumbai, Pune and Delhi-NCR had 62% cumulative share in sales of housing units during January-March this year.

The report points out that Mumbai led in the number of total housing units sold at 19,000 units, followed by Pune (18,000 units), Delhi-NCR (11,600 units) and Bangalore (11,500 units). On the new launches front, the gateway cities – Mumbai (25,300 units), Pune (16,000 units) and Delhi-NCR (11,200 units) cumulatively accounted for about 64% share during Q1 2023.

"We foresee demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. Projects with better amenities, focus on health and safety and clean surroundings to further gain an edge amidst evolving consumer preferences,” said Anshuman Magazine, chairman and chief executive officer- India, South-East Asia, Middle East & Africa, CBRE, said.

Projects in the higher ticket range (Rs 1.5 crore and above) would continue to see traction in sales as the market has witnessed a spate of new launches in this bracket.

“As large developers foray into tier-II cities, we expect to see a higher number of joint ventures and joint development initiatives as they strike partnerships with local players with an aim to manage regulatory hurdles and understand consumer preferences,” he said.