scorecardresearch
As pandemic blues recede, Indians flock to buy luxury homes

As pandemic blues recede, Indians flock to buy luxury homes

Share of luxury homes, out of the total residential units sold, doubles in H1, 2022 to 14 per cent from 7 per cent in 2019.

During the first six months of the year, January-June 2022, some 25,680 luxury units were sold compared to 17,740 in the full year 2019. (Photo: Reuters) During the first six months of the year, January-June 2022, some 25,680 luxury units were sold compared to 17,740 in the full year 2019. (Photo: Reuters)

Beating the pandemic blues, homebuyers in India have flocked towards the luxury homes market. Sales of luxury homes, residential units priced over Rs 1.5 crore, have surged significantly since pre-pandemic days, data from market analysts Anarock Property Consultants shows.

During the first six months of the year, January-June 2022, some 25,680 luxury units were sold compared to 17,740 in the full year 2019. For the perspective, in full year 2021 while luxury home sales surged post the second COVID wave it remained at 21,700 - 18.3 per cent lower than the first half of 2022.

“Indian luxury housing has performed remarkably well post the pandemic, with overall sales rising steeply across the top 7 cities. Latest ANAROCK Research data finds that of approx. 1.84 lakh units sold in these cities in H1 2022, about 14 per cent were in luxury homes. Contrastingly, of 2.61 lakh units sold in the whole of 2019, just 7 per cent were in the luxury category,” analysts at Anarock noted.

The Mumbai Metro Region (MMR) reported the highest number of luxury home sales - over 13,670 units sold in H1 2022, followed by NCR (National Capital Region) with 4,160 units. In overall sales, MMR’s luxury housing sales share increased from 13 per cent in 2019 to 25 per cent in H1 2022, while in NCR, share of luxury units rose to 12 per cent from 4 per cent in the same period.

"These sales figures are even more remarkable if we consider that it is mainly end-users who are driving luxury housing sales across these cities today. There is a clear takeaway on overall economic performance. Even though the typical buyers in this budget segment were not as impacted by the pandemic as the rest, HNIs (high net worth individuals) are conscious of cost. Discounts by developers made luxury properties very attractive for these buyers and NRIs have also been snapping up luxury homes in India because of the favourable exchange rate,” said Anuj Puri, Chairman, Anarock Group.

According to analysts, encouraged by the healthy demand for luxury offerings, developers have stepped up new supply in the luxury segment, launching over 28,000 units priced above Rs 1.5 crore across the top 7 cities in the first half of 2022. Nearly 28,960 luxury homes were launched in the full year 2019.

Design: Mohsin Shaikh

Published on: Aug 22, 2022, 3:21 PM IST
Posted by: Tarab Zaidi, Aug 22, 2022, 2:36 PM IST