The real estate has witnessed a substantial transformation in Q1 2024, marked by a notable 40% year-on-year surge in luxury housing sales. In stark contrast, the affordable housing segment experienced a 20% decline in sales, reflecting shifting consumer preferences and market dynamics. Additionally, there has been a significant increase in the sale of residential units priced above Rs 1.5 crore.
This surge in luxury housing market can be attributed to several factors, including increased disposable incomes and a growing preference for high-end homes as well as emergence of luxury housing as an investment instrument. In NCR Noida, Greater Noida, Ghaziabad, and Gurgaon have emerged as prime locations for luxury housing, offering a blend of modern amenities, strategic locations, and premium lifestyle choices.
“To begin, the growth of luxury residences is due to an increase in demand from affluent buyers looking for high-end properties with all the modern amenities. Moreover, today, they are content not just with a luxury home but also want to live in iconic addresses that inspire awe and adoration and possess a brand value. In the top seven cities, the share of luxury properties is on the rise. The number of high net-worth individuals (HNIs) is increasing by huge numbers. They have also catalysed the growth of luxury residences,” said Manoj Gaur, president, CREDAI NCR.
“The popularity of the luxury housing market is also driven by the changing lifestyle aspirations of buyers who seek exclusivity and superior quality of life. The desire for larger living spaces, premium amenities, and strategic locations is more pronounced than ever. This shift in consumer preferences, coupled with robust economic indicators and stable interest rates, has created a fertile environment for the luxury real estate segment to thrive. Additionally, the growing influx of foreign investments and the increasing trend of owning multiple high-end properties among HNIs further speak for the inherent strength and resilience of this market,” says Nayan Raheja of Raheja Developers.
“The market for residential units priced above Rs 1.5 crore has seen a marked increase in sales, highlighting the growing appetite for high-value properties. This trend is particularly evident in the Noida, Greater Noida, Ghaziabad, and Gurgaon regions, where buyers are prioritising spacious, well-located, and amenity-rich residences. Further, the limited availability of land banks in well-established neighbourhoods has also resulted in the growing popularity of luxury apartments,” said Gaurav Gupta, general secretary, CREDAI-NCR.
“The country’s economic growth, the general all-around prosperity and the preference for larger homes have been some of the key factors. Furthermore, there is no demand-supply imbalance, and leading developers have launched a number of projects to meet these demands. Moreover, investments from non-resident Indians (NRIs) have further fuelled this growth, making luxury homes not just symbols of prestige but also attractive investment instruments,” said Rajjath Goel, managing director, MRG Group
Conversely, the affordable housing segment has faced a 20% decline in sales. Economic uncertainties and evolving buyer preferences have contributed to this downturn. Potential buyers are increasingly seeking better investment opportunities and enhanced living experiences, which has led to a shift away from the affordable housing segment.
Luxury housing sales
Approximately 4,000 luxury units sold in Q1 2023 compared to 1,600 units in Q1 2022. In the first quarter of 2024, the Indian real estate market saw significant activity in the luxury residential sector. A total of 74,486 residential units were sold, marking a 20% increase compared to the same period in 2023?.