India’s premium housing market has grown at a healthy 37.8% in the first nine months of 2024 from the same period a year earlier. This implies a sharp attitudinal and trend shift in buyer preferences and market dynamics wherein premium and luxury housing forms about 16% of total sales, against just 6% in 2019. According to Anshuman Magazine, chairman and CEO, CBRE India, South-East Asia, Middle East and Africa, new launches in the premium housing space comprised about 19% of all new real estate launches during the period and hinted at a definitive attitudinal shift towards high-end property.
Another consequence is the increase in housing prices for the premium properties as well across major Indian cities. The housing prices, on average, in the top eight markets saw a year-over-year increase of 11% in Q3 2024 to INR 11,000 per square foot. The same is the 15th consecutive quarter where increases are seen in the prices, with strong demand and positive sentiments in the market. Delhi and Mumbai headed the metros in terms of percentage increase in price on an annualized scale.
Of late, most influential factors for luxury housing growth in India are NRI and HNWI participation. With favorable exchange rates and an attractive range of housing options, NRIs are considering premium properties not only as investments but as belonging to their native places, so to say. For their part, Ultra-HNWIs also have a massive contribution to make. The UHNWIs grew by 6.1% between 2022 and 2023. The number of UHNWIs in India as of 2023 was estimated to be 13,263, with a probable increase of 50% till 2028, thereby upping the demand for luxury homes. The COVID-19 pandemic has thoroughly transformed the aspirations of homebuyers.
In that respect, there has always been a preference for well-spaced homes which afford a dedicated space for work and also leisure. Premium amenities now form the high wish-list for buyers, which now include swimming pools, gyms, EV charging stations, and wellness facilities. Lastly, home automation systems, green energy solutions, and sustainable designs are high up in the list. Affluent buyers also need houses that are trendy nowadays with unique services such as private clubs, great dining, and retail facilities.
Experts forecast that the momentum in the premium housing segment will continue into 2025 and beyond. Since buyers will remain focused on comfort, exclusivity, and eco-friendly living, the demand for premium amenities and larger living spaces will continue to increase. Bhavik Bhandari, Chief Sales and Marketing Officer of a real estate firm, believes that this trend will sustain the growth of the luxury housing market in the years ahead.
Between April and September 2024, India’s top cities saw the sale of more than 227,400 units valued at Rs 2.79 lakh crore. That in itself emphasizes the demand for luxury homes. Although the unit sales declined marginally, total sales value registered a growth of 18%.
