Luxury segment housing records ~75% Y-o-Y growth in 2023 across top seven cities

Delhi-NCR records a threefold Y-o-Y increase in sales of luxury units in 2023

National – February 14, 2024 – CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today announced the findings of its report, ‘India Market Monitor Q4 2023’. According to the report, the luxury segment housing (units priced INR 4Cr and above) recorded a 75% Y-o-Y growth in sales in 2023. A ~45% Y-o-Y increase in unit launches was recorded in 2023. The percentage share of the luxury segment in the overall residential unit sales stood at 4% in 2023, nearly doubling its proportion of 2% in 2022.

The report indicates robust growth in luxury unit sales across cities in 2023. Delhi-NCR recorded the highest surge registering a 197% Y-o-Y increase. This was followed by Pune, Hyderabad, and Mumbai, registering an annual growth of about 144%, 64%, 24% and 4% respectively. New launches also kept pace with the sales, recording a 45% Y-o-Y growth in 2023.

The overall residential sales across price categories exceeded 3, 22,000 units in 2023, registering a 9% Y-o-Y growth. Sustained momentum in demand also led developers to launch over 3,13,000 new housing units in 2023, a 6% Y-o-Y increase. Mid-end projects emerged as the leading category driving sales, recording a 45% share in total sales for 2023, followed by high-end and affordable projects. Pune, Mumbai and Bangalore cumulatively accounted for 61% of the total sales. Unit launches in Mumbai, Pune, and Hyderabad, on the other hand, accounted for a 67% share during 2023.

During Oct-Dec ‘23, overall, ~86,000 residential units were sold, and 90,000 units were launched, during the quarter on an overall basis. The report further highlights that in Oct-Dec’23, the new unit launches recorded around 22% Y-o-Y increase and about 26% growth on a quarterly basis. Premium and luxury segments accounted for about 10% and 4% shares, respectively, during this period. During Oct-Dec ‘23, Pune recorded the highest residential sales, with a 24% share, followed by Mumbai with about 21% share. Delhi-NCR and Hyderabad accounted for about 17% and 15% of the market, respectively. In terms of unit launches during the same period, Mumbai took the lead with a 27.5% share, closely followed by Hyderabad with 26.9%, and Pune with 19%. Mid-end segment accounted for around 36% share in unit launches, trailed by high-end segment at 33% and premium category at 14% during this period.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “In light of the changing landscape, the premium and luxury sectors are expected to sustain their attractiveness, supported by favourable market  conditions driving healthy growth in the foreseeable future. While  regional dynamics may lead to fluctuations in capital values, the  overall outlook remains positive. A 75% surge in luxury unit sales  and a substantial ~45% rise in launches underscore the sector’s  vibrancy. The evolving market dynamics, especially in key cities like  Delhi-NCR, Mumbai, Pune, Hyderabad, and Bangalore, reflect a  nuanced demand for high-end residences. The positive momentum  witnessed over the past couple of years in new launches and sales is  likely to continue in 2024”.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

CBRE was the first International Property Consultancy to set up an office in India in 1994. Since then, the operations have grown to include more than 11,000 professionals across 15 offices with a presence in over 80 cities in India. As a leading international property consultancy, CBRE provides clients with a wide range of real estate solutions, including Strategic Consulting, Valuations/Appraisals, Capital Markets, Agency Services, and Project Management. The guiding principle at CBRE is to provide strategic solutions that make real estate holdings more productive and economically efficient for its clients across all service lines. Please visit our website at https://www.cbre.co.in/