Will The Unprecedented Sale of Luxury Homes in India Persist Beyond 2022?

23 October 2022, Mumbai

The luxury home market in India has done very well in the aftermath of the epidemic, with sales in the seven largest cities jumping sharply. In the first half of 2022, more than 1.80 million residential units were sold in the seven largest Indian cities, of which around 15% were luxury residences. This suggests that over 250,000 luxury properties in India were sold in the first half of 2022. In contrast to three years earlier, when more than 17000 luxury properties were sold, this demonstrates the extraordinary demand and absorption of premium real estate in India.

The desire for opulent homes in India continues to increase in a big way.

According to Rajan Ghoree, a luxury real estate analyst in India, one of the primary reasons for the extraordinary performance of the Indian luxury real estate industry is the availability of discounts offered by real estate developers. In reality, the NRI group has one of the largest buying capacities in real estate; owing to favourable exchange rates during this era, many NRIs have purchased luxury homes around India.

A favourable moment to invest in India's luxury real estateThe luxury market has seen several modifications that have made it more appealing to consumers. 

The availability of properties in this sector has been a key factor in the high number of purchases in this segment. Developers have been waiting for the pandemic-induced reluctance to subside so that consumers would open their pocketbook strings once again. Now that purchasers are once again interested, developers have introduced a number of new projects with attractive discounts.

Pratimosh Saxena, a real estate broker, claims that the highest number of luxury flats were introduced in India in 2022, regardless of state or city. As the demand for luxury flats was quantifiable, several real estate developers who had planned to construct inexpensive housing on their land parcels chose to building luxury apartments instead.

In 2023, the proportion of luxury launches will climb further, as many anticipate a return to economic stability after the country's two-year economic downturn.

According to a luxury real estate study from Zenopia, a luxury real estate marketing company specialising in selling and marketing Luxury homes, around 28,000 luxury housing units were created in first half of 2022, compared to 28,960 units released in all of 2019. That points out to the fact that the luxury real estate market has more than doubled in 2022 compared to 3 years ago.

This is enough data to excite any real estate development company worth its salt.

A major shift - from investment to self use

One of the major changes noted is that most of the luxury residences sold recently have been for self-use.

Extremely high emotional reaction from homebuyers has been one of the largest factors in the development of the luxury house category in India. Even while real estate may be all about the numbers, it seems that the necessity to offer enough living space for one's family has been one of the segment's primary motivations.

In India, the luxury section of the real estate market saw a significant growth in interest. Large bungalows and luxury homes were favoured, particularly by end-users.

According to the luxury real estate report by Zenopia, the luxury property segment's rise in cities such as Mumbai, Noida, and the National Capital Region, among others, has revealed that in Delhi, the demand for luxury floors has also increased, which, coupled with limited new ready supply, has pushed up floor prices by seven per cent year on year in the first half of 2022, whereas in Gurugram, newer condominiums with premium amenities have seen greater price appreciation. This represents the shift in consumer behaviour, as they become more quality-conscious.

In addition, the luxury section of the Mumbai real estate market saw significant momentum, with a big number of purchasers purchasing enormous villas on the ground and in the sky, mostly for their own use.

Lodha Luxury, the luxury real estate focussed division created within the Lodha Group, has achieved an amazing amount of luxury real estate sale volume in South Mumbai across all their luxury residential projects in 2022.

According to Kunal Engineer, a luxury real estate broker who specialises in South Mumbai real estate, the residential market in Mumbai is on the road to recovery after a lengthy period of uncertainty, and the luxury real estate market in South Mumbai will be in a state of high optimism in 2022. In addition, site inspections and queries from both the HNI group in India and the NRI segment from across the world indicate that the momentum for luxury property sales in Mumbai will continue for many years to come.

Conclusion

In certain places, the housing market has returned to pre-Covid -19 levels, while others are headed in that direction. With trends such as hybrid work gaining a permanent foundation, the residential industry has gained speed, especially for the bigger home market sector. The need for more space has prompted purchasers to choose three- and four-BHK flats with expansive terrace plots, freestanding bungalows, farmhouses, villas, and vacation home settings.