Hyd sees over 2x growth in luxury housing sales

Hyderabad: Hyderabad has witnessed more than two-times growth in luxury segment housing sales activity. The city has recorded a 110 per cent Y-o-Y (year-on-year) increase in sales of the luxury houses (units priced Rs 4 crore and above) at 800 units during January-March quarter (Q1) of 2024 when compared to 380 units in the same quarter last year, says a report.

According to the real estate consulting firm CBRE South Asia Pvt Ltd’s latest report ‘India Market Monitor Q1 2024’, the resurgence in luxury residential real estate has spurred robust growth across India, as about 45 per cent of the overall luxury stock was injected in the last five years alone. The segment has also grown at a CAGR of over 9 per cent since 2019 across the gateway cities.

The report further said, “Hyderabad is experiencing remarkable growth driven by a pro-business environment. The luxury housing sales from the city occupy nearly 20 per cent of the total sales in India. It almost claims the third spot with almost 10 per cent share of the country’s overall luxury inventory. It has witnessed an influx of luxury apartments and a surge in demand within this segment.

Areas such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg and Neopolis report sales with average ticket sizes ranging from Rs 20 crore to over Rs 40 crore. Across India, the luxury segment housing recorded a 10 per cent Y-o-Y sales growth during Q1 2024. The percentage share of the luxury segment in the overall residential unit sales stood at about 5 per cent in Q1. The report further points to around 64 per cent Y-o-Y increase in new launches of luxury segment units during Q1.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterised by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience.”

He further said: “Going forward, capitalising on the positive sales trend, developers nationwide are ramping up activity and are expected to launch new units in the segment. Sustainability has become a critical differentiator in real estate development, with an increasing emphasis on constructing eco-friendly and energy-efficient dwellings. As buyers in this category tend to be more aware of and demanding such features, developers are integrating features such as energy-efficient appliances, rainwater harvesting systems, indoor air quality control, and renewable energy sources to be able to tick the boxes when catering to the demand for luxury homes.”