Chennai: Sales of luxury homes witnessed 10 per cent growth in the March quarter, while Hyderabad saw the highest growth of 110 per cent. With demand for luxury homes being robust, the market share of large residential property developers has doubled since the pandemic.
The luxury segment housing units priced Rs 4 crore and above recorded a 10 per cent growth during Jan-Mar ’24. According to CBRE, new launches in the luxury segment saw 64 per cent growth during the quarter. In terms of sales, Hyderabad and Pune saw sales activity increasing by more than 2x and 4.7x respectively. Sales in Hyderabad went up from 380 units in the year-ago quarter to 800 units and in Pune, it rose from 150 to 700. Mumbai sales grew 15 per cent to 1330.
“Several reasons point to this performance of luxury real estate, such as the increase in the number of high-net-worth individuals due to rapid wealth creation and pent-up demand, limited availability of location, and neighborhood preferences,” said Rohit Gupta, CEO, Mantra.
Meanwhile, large listed residential property developers may see 10-12 per cent volume growth this fiscal after an estimated growth of 14 per cent in FY24. According to Crisil, their market share is seen doubling to 30-32 per cent in FY25 compared with FY19 before the onset of the pandemic. The top 11 developers account for one-third of the residential property sales in the country.
In housing, the shift towards the mid-to-premium and luxury segment continues while launches in the affordable segment remain muted. The share of launches in the mid-to-premium and luxury segment is estimated at 55-60 per cent for FY24 compared with 30-35 per cent before the pandemic.
Increasing per capita incomes, slowing inflation, stable commodity prices, lower fiscal deficit, and decline in global policy rates should lay the ground for interest rate cuts and this will support demand, finds Crisil.
