Luxury home sales zoom; jumps 55% in 2023

Sales of luxury homes is booming in India. As per a latest report, the luxury real estate market in India experienced a remarkable increase in the sales value of luxury homes priced at Rs 50 crore and above, have surged 55% in 2023. 

The report, prepared by JLL India shows, total deal value of luxury homes surged to Rs 4,319 crore in 2023, a significant increase of approximately 51% over the value of Rs 2,859 crore worth of luxury homes recorded in 2022. This surge in sales value was accompanied by a rise in the number of transactions, with at least 45 luxury homes sold in 2023 or 55% more than the 29 homes sold in the previous year. Out of the 45 transactions, 58% were apartments and the rest 42% were bungalows.

Largest residential market Mumbai emerged as the leader in this segment as well, witnessing a total of at least 29 luxury homes sold, with a combined value of Rs 3,031 crore. Delhi-NCR followed closely with at least 12 luxury homes sold, worth Rs 1,043 crore. While Bengaluru  witnessed at least 4 transactions in this segment, amounting to a sales value of Rs 245 crore. 

Mumbai witnessed most transactions, primarily in the Malabar Hill and Worli micro markets. Golf Links and Vasant Vihar were the top performing submarkets in terms of luxury residential sales in Delhi NCR. Gurgaon also saw a couple of luxury apartment transactions. The average size of apartments sold increased by 18% compared to the previous year, indicating a preference for larger homes. 

According to Dr. Samantak Das, Chief Economist and Head Research & REIS, India, JLL, “The increase in number of luxury residential transactions in 2023 demonstrated the robust demand for such high-end properties in India. Notably, out of the 45 luxury homes sold in 2023, 14 homes were in the price segment of Rs 100 crore and above, with majority (79%) of them in Mumbai. The interest for such properties is expected to strengthen in future as there is both the aspiration for high-end bespoke living and the confidence of affluent buyers in the long-term value that these properties hold.” 

We are not surprised that ultra luxury home sales are doing so well. The demand for such residential real estate has been registering  significant growth since 2021 and it continues its momentum into 2024. The Luxury Outlook Survey conducted by India Sotheby’s International Realty confirmed this trend with over 71% of the respondents expressing a desire to invest in real estate in the next 12-24 months. While traditionally only bungalows, farmhouses, and independent luxury villas commanded prices above Rs 50 crore, now apartments and penthouses in high-rise buildings in top pin codes also fetch such prices due to the exclusive lifestyle and luxury amenities they offer,” says Ashwin Chadha, CEO, India Sotheby's International Realty.

As per JLL, in the first two months of 2024, at least four homes priced at Rs 50 crore and above have already been sold with a combined worth of Rs 397 crore.