Luxury Home Sales in India Booms in 2022 With Maximum Sales in Mumbai Luxury Real Estate Market

Luxury Home Sales Take a Jump

Sales of luxury homes increase from 7% in 2019 to 14% in the first half of 2022, with the highest sales of luxury properties occurring in the Mumbai Metropolitan Area.

In the first half of 2022, around 25,680 luxury residences (units priced more than Rs. 1.5 crore) were sold across the top 7 Indian cities, compared to 17,740 units in all of 2019; sales in H1 2022 alone surpassed those in the full year of 2019.

According to ANAROCK Research, over 1.84 lakh units were sold in the top seven cities during the first half of 2022-2, with around 14 percent (approximately 25,700 units) sold in the premium category.

Approximately 17,740 luxury apartments were sold this year, accounting for just 7% of the total 2.61 lakh units sold this year.

Sales of high-end properties have been strongest in MMR and NCR, accounting for over 17,830 transactions in H1 2022. They only made up 11,890 of the total luxury house sales in all of 2019.

Sales of high-end homes in MMR rose from 13% in 2019 to 25% in H1 2022. The corresponding figure for NCR increased from 4% in 2019 to 12% in H1 2022.

Approximately 44,710 high-end residences are on the market in MMR, which accounts for the region's greatest proportion of 46 percent. In the first half of 2022, 13,670 high-end properties were sold. With over 19,470 high-end homes on the market, NCR is in second place. About 4,160 units were sold in this market during the first half of 2022.About 11,730 high-end properties are now on the market in Hyderabad. About 2,420 items in this price range were purchased in the first half of this year. There are over 9,860 high-end apartments on the market in Bengaluru. About 2,430 high-end properties sold in the first half of 2022.

Sales of high-end residences in major urban centres are mostly being driven by individual buyers. Insight on the economy as a whole may be gleaned. HNIs are price cautious despite the fact that their lifestyles were less disrupted by the epidemic than those of more average consumers.

Anuj Puri, Chairman - ANAROCK Group, said that "Non-Resident Indians (NRIs) have been buying up luxury apartments in India because of the favourable currency rate and discounts offered by developers."Developers have been encouraged by the robust demand for luxury goods and services, and have increased supply in this market by releasing more than 28,000 apartments in the top seven cities in the first half of 2022, each one costing more than Rs 1.5 crore. During 2019, over 28,960 high-end residences were introduced to the market.

Affordable Housing Sale Shrinks More

The percentage of home sales attributed to affordable housing (homes priced at less than Rs 40 lakh) fell from 38% in 2019 to 31% in H1 2022. Approximately 57,040 of the 1.84 million houses sold in the first half of 2022 fell into this price range.

Due to the severity of the economic effect of the pandemic, affordable housing was severely harmed after the event. The survey found that affordable home sales share fell the most in Hyderabad, from 23% in 2019 to 6% in H1 2022, followed by Chennai, from 52% in 2019 to 36% in H1 2022.