High demand for luxury housing to continue in FY25
The developers across Bengaluru, Hyderabad, Chennai, Pune, NCR and other metro centres have been launching new projects in the premium housing space
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Bengaluru: Demand for luxury housing in the current financial year is likely to remain robust after posting record sales in the last financial year.
Real estate developers and consultancy firms said demand for bigger houses, desire among affluent people to own second house, rising wealth creation and adequate supply of premium projects from real estate companies are seen as major factors for this momentum.
“We have seen a strong demand across all segments where we have a presence, including luxury housing. This is primarily driven by genuine end-user demand, and sales growth has been consistent. Several market research reports have recorded a rise in demand for luxury housing, and we have seen similar growth in our portfolio,” Abhishek Kapoor, Group CEO of Puravankara Ltd told the Bizz Buzz.
“We continue to expand our portfolio and have several launches planned for FY25. We closed the previous financial year with Rs 5,914 crore in sales value, a 90 per cent increase over the previous year. Demand continues to be strong, and we remain optimistic about new projects,” Kapoor added.
Luxury or premium housing are those housing projects where price is higher than Rs 1.5 crore or more for each housing unit.
According to real estate consultancy firm Anarock, as many as 66,100 units were sold in Bengaluru in FY2024, out of which 20 per cent share was of luxury homes priced Rs 1.5 cr or more.
Similarly, another prominent city of southern India- Hyderabad witnessed a total of 67,090 units getting sold across all budgets of which luxury homes comprised 31 per cent share.In Chennai, around 21,260 units were sold in FY24, of which luxury homes share was 15 per cent.
“The luxury housing segment has performed remarkably well post the pandemic, with overall sales rising steeply across the top seven cities. FY24 has been even better in terms of numbers. The fact is that there was minimal impact of the pandemic on this buyer-class, and buyers of this budget category are out in the market for various reasons. Discounts and multiple offers doled out by developers initially during the pandemic further made such properties far more lucrative and attractive for several buyers.It also scores high with NRIs due to the depreciating rupee translating into greater buying power,” Anuj Puri, Chairman of Anarock Group.
“For many affluent denizens, second homes became a tantalising vision of alternate shelter in the time of storm. The rich hoped to own a second home, giving rise to demand for luxury homes in and around large cities,” he added.
Sensing the opportunity in the premium housing space, developers across Bengaluru, Hyderabad, Chennai, Pune, NCR and other metro centres have been launching new projects in luxury housing space.
In the current financial year, such trend is likely to continue with many more projects getting launched in coming quarters.
