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High-end & luxury housing take a good chunk of mkt

The residential real estate market in India recorded robust growth in the first quarter of 2024, propelled by persistent high demand. The high-end and luxury segments made a substantial contribution to this growth, while the mid-segment retained its leadership position in terms of the sheer number of launches or shares, mentioned Cushman & Wakefield’s Residential Marketbeat Report for Q1.

The report indicates that the top 8 cities recorded a total of 69,000 unit launches, with Mumbai and Pune being the top contributors with 28% and 16% respectively. Hyderabad and Bangalore followed with 16% and 13%.

Although the total launches declined by 7% from Q4 2023 at 74,344 units and 15% from Q1 2023 at 81,167 units, it still surpassed the average quarterly launches observed in 2022 at 67,960 units, indicating yet another positive year for the sector.

Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield said, “Over the past year, a significant rise in demand for high-end and luxury properties has emerged at both national and local levels. This shift reflects a change in homebuyers’ growing desire to invest in a place not only to live, but as a high-quality asset that reflects their lifestyle aspirations”.

In Q1-2024, the high-end and luxury segment remained dominant, accounting for roughly 34% of all property launches. This trend has been consistent in recent years and is a reflection of the evolving aspirations of homebuyers who seek enhanced lifestyles. In fact, this segment’s market share has grown from a mere 13-14% in 2019 to more than 30% since 2022.

The mid-segment housing category continues to lead in terms of volume, accounting for over 50% of all property launches, which is consistent with the past 3-4 years. However, the affordable housing segment saw a decline, accounting for only 13% of launches this quarter. Developers may be wary of investing in this segment due to potentially lower margins and stricter regulations for claiming incentives, particularly when high-end and luxury, and mid-segments are experiencing high demand.

“The demand for larger, more luxurious homes has attracted established developers with the capital and expertise to deliver premium, customized living spaces that cater to the aspirations of modern India. This trend has led to a surge in launches by established developers, significantly increasing their y-o-y contribution to the residential market. We expect this momentum to continue throughout the coming fiscal year (FY 2024/25) as well,” she said.

As per the report established developers, who are large and regionally reputable, are driving residential launches across various cities. As per the data, more than 38% of residential launches in Q1 2024 were initiated by listed and reputed developers.

According to the report, established and reputable developers are driving residential launches across various cities. The report suggests that more than 38% of residential launches in the first quarter of 2024 were initiated by listed and reputed developers. “This trend has been consistently growing for the past two years, with listed developers showing a year-on-year increase of approximately 7-8% since 2022. This shift in trend indicates that homebuyers are starting to prioritize factors such as quality and trust over price while making purchasing decisions,” it mentioned.

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