Luxury Housing Sales Surge in 2024 With 53% YoY Growth in Top 7 Cities

New Delhi, January 15, 2025: India’s luxury housing segment (units priced at ₹4 crore and above) recorded about 53 per cent YoY (year on year) sales growth in calendar year 2024 across top seven cities, real estate consulting firm CBRE South Asia Pvt. Ltd. has said in its report, ‘India Market Monitor Q4 2024 – Residential’. The report highlights that the segment also recorded significant unit launches, registering approximately 52 per cent YoY growth in 2024.

In 2024, total luxury housing sales touched 19,700 units, recording 53 per cent YoY growth. Delhi-NCR, Mumbai, and Hyderabad emerged as the key markets, collectively contributing over 90 per cent of the luxury housing unit sales across the top seven cities. Delhi-NCR led the market, reflecting a strong 90 per cent Y-o-Y growth, followed by Mumbai, recording a 32 per cent Y-o-Y increase. Moreover, Pune witnessed significant demand in the luxury housing segment, recording ~825 units sales in 2024.

The number of new launches in 2024 in the luxury segment reached ~24,180, recording a ~52 per cent Y-o-Y increase. In line with the trajectory of luxury housing unit sales, Delhi-NCR led the new launches, followed by Mumbai and Hyderabad. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023.

The rising demand for luxury housing is largely driven by a growing number of affluent buyers seeking spacious homes with premium amenities that cater to their multifaceted lifestyles. Furthermore, this demand has been bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.

A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast.

Overall Residential Market Performance in 2024

India’s residential real estate market demonstrated positive activity throughout CY 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This momentum pushed annual sales to surpass 300,000 housing units for the second year in a row. To meet the rising demand, developers launched over 280,000 new residential units during the year. Mid-segment projects dominated sales with a 40 per cent share, followed by high-end and affordable segments. Together, Mumbai, Pune, and Bengaluru accounted for 64 per cent of the total sales in 2024, underscoring their significance in the residential market.

During the October-December 2024 quarter, 75,300 sales of housing units were recorded, while the number of new launches during the same period stood at 67,800 units. In 2024, Mumbai, Pune, and Hyderabad collectively accounted for 63 per cent of the total unit launches. During October-December 2024, Mumbai, Pune, and Delhi-NCR cumulatively contributed 66 per cent to the overall sales. Additionally, unit launches in October-December 2024 saw Mumbai, Pune, and Bengaluru capturing a combined share of 60 per cent.

Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, Anshuman Magazine said, “The residential real estate market is driven by strong fundamentals underpinned by robust end-user demand. We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market. However, with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence”

Residential Outlook

• Strong Market Fundamentals: The residential real estate market is currently backed by robust end-user demand and healthy investor participation, indicating strong market fundamentals for growth. This strong demand is expected to keep both sales and new launches steady.
• Impact of Elevated Capital Values: Given the elevated capital values and an uncertain global economic landscape, homebuyers may start adopting a wait-and-watch approach to purchasing decisions.
• High-End and Premium Segments: Demand for high-end and premium housing (priced between ₹1.5 and 2 crore and ₹2 to 4 crore) is expected to remain strong.
• Shift in Market Dynamics: Traditional mid-end markets such as Noida, Bengaluru, Pune, and Chennai are increasingly transitioning towards high-end developments.

This shift reflects the evolving preferences of buyers and the growing demand for luxury properties in these regions. The gradual shift towards high-end offerings suggests India’s premium and luxury housing markets are expected to remain elevated in the coming years.