Luxury housing sales increase by 40% YoY

The luxury housing market in India saw a robust 40% YoY increase in sales during the April-June quarter, contrasting sharply with a 20% decline in affordable housing sales. This trend reflects changing consumer preferences and market dynamics, as affluent buyers increasingly favour high-end properties above US$ 179,444 (Rs. 1.5 crore). According to CREDAI, this surge is fuelled by rising disposable incomes, a growing preference for superior living standards, and the perception of luxury housing as a lucrative investment avenue.

CREDAI officials like the President of CREDAI NCR, Mr. Manoj Gaur, attribute this growth to the increasing number of high net-worth individuals (HNIs) seeking modern amenities and exclusivity in locations such as Noida, Greater Noida, Ghaziabad, and Gurgaon. These regions have emerged as hotspots for luxury housing, offering strategic locations and premium lifestyle choices that cater to evolving buyer aspirations. The market’s resilience is bolstered by favourable economic indicators, stable interest rates, and a steady influx of foreign investments, reinforcing luxury homes’ appeal as prestigious assets.

In contrast, the affordable housing segment has faced challenges due to economic uncertainties and evolving buyer preferences, leading to reduced sales activity. Despite this, the luxury residential sector continues to thrive, with significant sales recorded in the first quarter of 2024, underscoring its importance in the Indian real estate landscape.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.