The luxury real estate market in India has experienced a remarkable surge in sales value, particularly in the segment of homes priced at INR 50 crore and above. In 2023, the sales value of luxury homes in this price range reached an impressive amount of INR 4,319 crore. This represents a significant increase of approximately 1.5 times compared to the sales value of INR 2,859 crore recorded in the year 2022.
Rise in Number of Transactions
The surge in sales value was accompanied by a rise in the number of transactions. In 2023, at least 45 luxury homes were sold, whereas only 29 homes were sold in the previous year. Out of these 45 transactions, apartments accounted for 58%, while bungalows made up the remaining 42%.
Mumbai Emerges as Market Leader
The city of Mumbai emerges as the leader in the luxury real estate market, with a total of at least 29 luxury homes sold in 2023. The combined value of these transactions amounts to INR 3,031 crore. Mumbai’s luxury residential market mainly thrived in the micro markets of Malabar Hill and Worli.
Delhi NCR and Bengaluru Not Far Behind
Following closely behind Mumbai is Delhi NCR, which witnessed at least 12 luxury home transactions, totaling INR 1,043 crore. Bengaluru also showed impressive growth in this segment, with at least 4 transactions amounting to a sales value of INR 245 crore.
Resilience and Vigour of the Luxury Residential Market
The luxury residential market in India has demonstrated its resilience and vigour, with a combined sales value of approximately INR 7,177 crore for the years 2022 and 2023. This upward trajectory reflects the strong economic fundamentals of the luxury real estate market and the increasing demand for distinctive living experiences among affluent homebuyers.
Golf Links, Vasant Vihar and Gurgaon Witness Performance
In the luxury residential sector, Golf Links and Vasant Vihar have emerged as the top performing submarkets in Delhi NCR. Gurgaon has also witnessed a couple of luxury apartment transactions. Homebuyers are showing a preference for larger homes, as the average size of apartments sold increased by 18% compared to the previous year.
Looking Forward
The luxury residential market in India continues to grow and thrive. With the combined sales value of around INR 7,177 crore for the years 2022 and 2023, it’s clear that the demand for luxury homes remains strong. The dominance of Mumbai, Delhi NCR, and Bengaluru in this segment showcases the potential for further growth in the luxury real estate market.
