Among the top eight cities, Mumbai and Pune emerged as frontrunners, jointly accounting for 44% of total unit launches, with Mumbai leading at 28% and Pune closely following at 16%.
In the first quarter of 2024, the luxury real estate sector established another benchmark. It not only contributed a massive 34% to new residential launches but also displayed a consistently rising graph, ascending sharply from the 13-14% growth it had clocked in 2019, according to a report by Cushman & Wakefield.
Read More: Godrej Properties clocks record sales bookings in FY’24 at over Rs 22,500 crore, up 84% annually
Among the top eight cities, Mumbai and Pune emerged as frontrunners, jointly accounting for 44% of total unit launches, with Mumbai leading at 28% and Pune closely following at 16%. This surge was primarily spearheaded by established developers, who contributed a whopping 38% of the launches.
“These numbers indicate the notable shift towards established and reputed realty companies. The reasons are obvious. Buyers of luxury homes are looking for iconic properties which, when developed by a renowned company, add to the value proposition of the project. Moreover, since luxury projects usually involve higher bandwidth in terms of the scale of investment, only established companies with years of experience have the wherewithal. These are two main reasons why luxury housing projects by established developers carry higher brand value,” says Manoj Gaur, President, CREDAI NCR, and CMD, Gaurs Group.
“The luxury segment has seen rapid growth in the last three years. While we can largely attribute it to the buyer’s preference for large homes and high-class amenities inside the apartment complex, another equally valid reason is the rising land and construction costs forcing developers to shift towards mid-segment, premium, and luxury housing projects,” says Rajjath Goel, Managing Director, MRG Group.
Read More: Cement Price Hikes To Pose Challenge To Affordable Housing: Experts
Despite the growing popularity of the luxury segment, the mid-segment retained its dominance, constituting over 50% of all launches, reflecting the diverse preferences in the market.
“In the National Capital Region (NCR), luxury property launches have continued to dominate and captured an impressive 61%. The strengthening of infrastructure in NCR over the past few years has instilled confidence in consumers, leading them to explore newer neighbourhoods beyond the traditional areas. Further, the RRTS project, opening up of Dwarka Expressway, has added to the attraction of Gurugram,” says Nayan Raheja of Raheja Developers.
Along with the surge in luxury housing, Noida has also substantially contributed to the premium and mid-segment housing, further solidifying the region’s growth trajectory, marking a robust 12-15% year-on-year growth.
Read More: Migsun Group to develop Rs 426-cr mixed-use project in Lucknow
“The increasing emphasis on infrastructure, including the Metro project, inauguration of Dwarka Expressway, have not only instilled consumer confidence but also enhanced the value proposition of upcoming areas like Southern Peripheral Road, Sector 71, and New Gurugram. This concerted development effort will add to the charm of Gurugram as a prime real estate destination,” says Ashwani Kumar of Pyramid Infratech.
“Embracing the pinnacle of opulence, the luxury real estate market has soared to unprecedented heights over the past three years. Defined by expansive living spaces and lavish amenities, this sector has thrived amidst rising construction costs. However, amidst this flourishing landscape, the mid-segment continues to reign supreme, a testament to the diverse preferences within our market. In regions such as NCR and Noida, the surge in infrastructure development has only fueled the demand for luxury and premium housing, propelling remarkable year-on-year growth. Welcome to a world where luxury meets aspiration, where every corner is crafted for the discerning few,” informs Pawan Sharma, MD, Trisol RED.
Meanwhile, Mumbai witnessed a commendable 21% growth in residential launches, primarily concentrated in the mid-segment. In comparison, Bengaluru experienced a noteworthy 14% annual growth, with branded developers taking the spotlight. These trends underscore the dynamic nature of India’s real estate landscape, characterized by a blend of luxury, mid-segment, and emerging market dynamics.
Other major Indian cities are making notable contributions to the real estate sector. Mumbai’s 21% growth in residential launches, predominantly in the mid-segment, and Bengaluru’s 14% annual growth underscore the diversity in the market. Cities like Chennai, Pune, Ahmedabad, and Hyderabad have also reported robust growth.
