Luxury Housing Sales Double to 14%

Luxury Housing Sales Double to 14% in H1 2022 from 7% in 2019, Approx. 25,680 luxury homes (units priced >1.5 Cr) were sold across the top 7 Indian cities in H1 2022, against 17,740 units in 2019

By Varun Singh

Indian luxury housing has performed remarkably well post the pandemic, with overall sales rising steeply across the top 7 cities. Latest ANAROCK Research data finds that of approx. 1.84 lakh units sold in these cities in H1 2022, about 14% (approx. 25,700 units) were in luxury homes. Contrastingly, of 2.61 lakh units sold in the whole of 2019, just 7% (approx. 17,740 units) were in the luxury category.

MMR and NCR have led luxury homes sales with H1 2022 seeing approx. 17,830 units sold in these two cities alone. In 2019, they accounted for a mere 11,890 luxury homes sold in the entire year.

In terms of overall sales share, MMR’s luxury housing sales share increased from 13% in 2019 to 25% in H1 2022. In NCR, the sales share rose to 12% in H1 2022, from 4% in 2019.

Anuj Puri, Chairman – ANAROCK Group, says, “These sales figures are even more remarkable if we consider that it is mainly end-users who are driving luxury housing sales across these cities today. There is a clear takeaway on overall economic performance. Even though the typical buyers in this budget segment were not as impacted by the pandemic as the rest, HNIs are conscious of cost. Discounts by developers made luxury properties very attractive for these buyers and NRIs have also been snapping up luxury homes in India because of the favourable exchange rate.”

Encouraged by this healthy demand for luxury offerings, developers have stepped up new supply in the luxury segment, launching over 28,000 units priced >INR 1.5 Cr across the top 7 cities in just first half of 2022. Approx. 28,960 luxury homes were launched in the entire 2019.

Affordable Housing Contracts Further

The affordable housing segment (units priced <INR 40 lakh) saw its sales share dip from 38% in 2019 to 31% in H1 2022. Of 1.84 lakh homes sold in H1 2022, approx. 57,040 units were in this budget category. Post-pandemic, affordable housing was significantly impacted because its target audience took the biggest economic hit. In terms of cities, Hyderabad saw the maximum dip in affordable housing sales share – from 23% in 2019 to 6% in H1 2022, followed by Chennai – from 52% in 2019 to 36% in H1 2022.

City-wise Luxury Homes Inventory

ANAROCK data shows that the top 7 cities currently have approx. 97,140 luxury and ultra-luxury homes for sale.

• MMR has the maximum share of 46%, with approx. 44,710 luxury homes currently available for sale. In H1 2022, 13,670 luxury homes were sold here
• NCR comes second with approx. 19,470 luxury units currently available for sale. In H1 2022, approx. 4,160 units were sold in this segment
• Hyderabad has approx. 11,730 luxury homes available for sale. In the first half of this year, approx. 2,420 units were sold in this budget category
• Bengaluru has approx. 9,860 luxury units available for sale. In H1 2022, approx. 2,430 luxury homes were sold here
• Pune has approx. 5,860 luxury homes available for sale. In H1 2022, approx. 1,460 luxury homes were sold here
• In Chennai, approx. 4,020 luxury units are currently available for sale. In H1 2022, approx. 920 units in this category were sold here
• Kolkata has the lowest available luxury homes stock with approx. 1,490 units currently for sale here. In H1 2022, approx. 630 units were sold in this category.

Also Read: Luxury Real Estate set to Rebound in 2023