India’s luxury real estate market is witnessing an unprecedented boom, with sales of high-end properties priced at Rs 4 crore and above experiencing a remarkable 27% year-on-year growth from January to June 2024. According to CBRE South Asia Pvt Ltd's latest India Market Monitor Q2 2024 report, the luxury housing segment saw approximately 8,500 units sold during this period, a significant increase from the 6,700 units sold in the same timeframe the previous year.

The surge in luxury home sales is notably concentrated in the top seven cities, with Delhi-NCR, Mumbai, and Hyderabad emerging as the primary markets. These cities accounted for nearly 84% of the total luxury housing sales. Delhi-NCR led with around 3,300 units sold, reflecting a 13.8% increase year-on-year. Mumbai followed closely with approximately 2,500 units sold, a 13.6% growth from the previous year. Hyderabad reported the most striking growth, with sales reaching about 1,300 units—a phenomenal 44% increase compared to the previous year.

The second quarter of 2024 (April-June) mirrored this trend, with a dramatic 40.1% year-on-year increase in luxury housing sales. This quarter saw approximately 4,410 units sold, up from around 3,150 units in the same quarter of 2023. This growth underscores a growing preference among affluent buyers for properties offering enhanced amenities and expansive living spaces. The increasing presence of Non-Resident Indians (NRIs) and savvy investors is further driving demand, contributing to the buoyant market.

Chennai, traditionally known for its stable but less dynamic real estate market compared to cities like Mumbai and Delhi, is also experiencing notable growth. The city has seen a significant uptick in luxury property transactions, with total sales for high-end units priced at Rs 4 crore and above reaching around 100 units in the first half of 2024. This performance is consistent with the overall positive trend and highlights Chennai’s growing appeal in the luxury segment. The city’s luxury market is expanding as developers introduce new projects featuring high-end amenities and improved infrastructure, catering to the rising demand from affluent buyers seeking quality and exclusivity.

The overall residential market in India has demonstrated robust performance during the first half of 2024. A total of 156,000 residential units were sold, while over 153,000 new units were launched across all categories. Mumbai, Pune, and Bengaluru have emerged as the top cities in terms of residential sales, capturing 63% of the total sales volume. In terms of new launches, Mumbai, Pune, and Hyderabad led the activity, accounting for a combined 64% of the new units introduced to the market.

Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East, and Africa at CBRE, expressed confidence in the market’s future. "We foresee continued strong momentum in the housing sector for the remainder of the year. This optimism is fueled by favorable homebuying sentiments, festive season promotions, and substantial land acquisitions by developers. These factors are expected to balance supply and demand dynamics, energize market activity, and particularly benefit the luxury housing segment."Looking ahead, the residential real estate market is poised to remain vibrant. Mid and high-end housing categories are projected to be key drivers, with properties in the Rs 1 crore to Rs 1.5 crore range becoming increasingly popular among buyers. The demand for premium (Rs 2 crore to Rs 4 crore) and luxury housing (Rs 4 crore and above) is expected to rise, driven by buyers seeking homes that reflect their affluent lifestyles. Additionally, there is a growing interest in low-density housing and plotted developments, with a shift towards urban peripheries for these segments.

The ongoing mega infrastructure projects across India, including new transportation networks, highways, airports, and Metro systems, are anticipated to further bolster real estate growth. These developments are expected to unlock new markets, establish satellite cities, and stimulate growth in peripheral areas, making luxury housing an increasingly attractive investment option. Chennai’s expanding luxury market is a testament to the broader trend of elevated demand and evolving buyer preferences across India’s real estate landscape.