While the affordable housing sector continues to be in decline, the luxury residential market in NCR cities is booming, with a year-on-year increase in its proportion.
According to the most recent research by real estate consultants Anarock, the NCR cities had a close to 12% luxury property market share in the first half of the calendar year — a nearly 100% increase from 6% in 2021. In 2019, the share of luxury homes in NCR cities was only 4%.
Approximately 19,470 luxury units are available for sale in the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR). According to Anarock, about 4,160 units were sold in this segment in these two cities in the first half of 2022.
How Luxury Residential Units Become The First Choice
Bengaluru, Chennai, and Hyderabad each have a 10% share of the luxury residential market. It is 6% in Kolkata and 5% in Pune. According to the survey, over 14% (roughly 25,700 units) of the total 1.84 lakh units sold in these cities in the first half of this fiscal year were luxury homes. In comparison, only 7% (approximately 17,740 units) of the 2.61 lakh units sold in 2019 were in the luxury category.
The real estate market is encouraged by this solid demand for premium segments, that why developers have stepped up fresh supply in the luxury market, launching nearly 28,000 apartments having price above Rs 1.5 crore across the top seven metro cities in just the first half of 2022,” said Anuj Puri, chairman of Anarock.
How Global Lifestyle And Hospitality Services Included In The Luxury Living
City-based developers attributed the increase in luxury housing market share to post-Covid demand for larger homes and a reversal in the real estate cyclical tendency.
“The rise in the luxury segment of the Indian real estate industry must be regarded at from the perspective of the prospective it holds for the growth of the economy in the post-Covid phase,” stated, CEO of Emaar India, Kalyan Chakrabarti.
The robust demand is supported by macroeconomic growth factors, a reversal in the cyclical pattern of real estate, and structural changes in demand drivers post-Covid.”
“The homebuyers have experienced the concept of luxury living with the perfect global lifestyle and extraordinary hospitality services, cuisine to the evolved taste of the globally toured Indians,” said CMD of Central Park, Amarjit Bakshi.
These most important elements contributed to an increase in the premium home segment in the first half of the year 2022.”