by THO
Karnataka’s capital city Bengaluru stood apart in the pack of India’s top seven cities as the only market to see a year-on-year decline in sales of luxury housing units priced ₹4 crore and above during the first half of 2024, according to a report by property consultancy CBRE.
“The dip in sales in Bengaluru may be momentary and attributed to a reduced supply of luxury housing during H1,” reasoned Ram Chandnani, Managing Director, Advisory and Transactions, CBRE India.
According to the consultant, mere 10 luxury residential units priced ₹4 crore and above were sold in Bengaluru during the January-June period of the ongoing calendar year as against 200 units in the same period last year. The mid-segment appears to be the star performer in this geography, per data available in the public domain.
According to a Knight Frank India report, the ₹50 lakh – 1 crore bracket alone accounted for 43% of the total 27,404 units sold in Bengaluru during the first half of 2024.
“From now on, we can expect a rise in H2 in luxury housing sales across the cities due to the upcoming festive season,” Chandnani said.
Overall, the luxury residential segment registered a strong sales momentum during the period under review with approximately 8,510 units sold across the top seven cities in India, compared to around 6,700 units during the same period last year. This marked an approximately 27% year-on-year growth.
“The surge in demand for luxury housing has been primarily driven by a growing preference by affluent buyers seeking enhanced amenities and more spacious living areas that complement their multifaceted lifestyle,” the report noted.
Standout performers
In the first of 2024, NCR led the sales rally with a 13.8% annual increase in the number of luxury housing units sold during the period, at 3,300. Meanwhile Pune recorded a noteworthy rise in luxury sales activity, with demand growing nearly six-fold on an annual basis to touch approximately 1,100 units, against 200 in the first half of 2023.
According to the report, Delhi-NCR, Mumbai and Hyderabad collectively accounted for nearly 84% of the total luxury housing sales across the top seven markets in the country.
Also Read: Bengaluru top choice for non-resident Indians eyeing budget and mid-segment homes
“The luxury housing segment, particularly for properties priced at ₹4 crore and above, is set to thrive as buyers seek homes that align with their affluent lifestyles,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE. Capital value growth in this segment is projected to stabilize, with an increasing focus on core project fundamentals such as quality, location, and access to essential infrastructure, he added.
Pan India metrics
Overall, the Indian housing market saw a total of 1,56,000 units sold, and over 1,53,000 new units launched across all categories during H1 2024. Mumbai, Pune, and Bengaluru emerged as the leading cities, accounting for a 63% share in total residential sales in India during the half-yearly period.
In terms of fresh supply, Mumbai, Pune and Hyderabad dominated launch activity, capturing a significant cumulative share of 64% in the first two quarters of 2024.
Also Read: Luxury homes above ₹1 crore witness 41% growth in sales; affordable housing sales decline
