According to a report by property consultant Anarock Group, the percentage of luxury homes sold in India has tripled in the last five years.
Luxury homes, defined as those priced at more than 15 million rupees ($179,650), accounted for 21% of all residential units sold in the top seven Indian cities in the first quarter of 2024, according to a report released Friday. It was 7% for the same period in 2019.
The boom in India’s property market coincides with strong economic growth and demand from non-resident Indians. Earlier this year, DLF Ltd.’s luxury project of over 1,100 homes near the capital New Delhi sold out in three days before construction began, with non-resident Indians purchasing a quarter of the units.
Affordable housing units saw their share of sales fall to 18% from 37% during the same period, while the mid-range and premium housing segment “- homes priced between 4 million rupees and 15 million rupees “- remained the dominant segment with nearly 59% share.
“The luxury segment is driven by a mounting appetite for bigger homes by branded developers in superior locations,” Anuj Puri, chairman of Anarock, said in the report. Affordable houses are “nowhere near to recouping its stellar sales share in 2019,” he said.
The change in trend is also evident in the new supply of houses. Luxury homes now account for 25% of new units, up from 11% in 2019, while affordable housing supply has decreased to 18% from 40% in the same period.
