Sales of Luxury Homes in India Increase by 130 per cent in The First Six Months of 2023

According to a report by CBRE South Asia, between January and June of this year, 6,900 Indian luxury residences with a price tag of Rs 4 crore or more were successfully transacted. This represents an increase from the 3000 units sold in 2022.

Comparing the first half of 2023 to the same period the previous year, sales of high-end real estate in India increased by a staggering 130%.

Non-resident Indians (NRIs) have become a driving force in India's prestige real estate market. Increased investments by non-resident Indians in the Indian real estate market have substantially increased demand for luxury properties. For NRIs seeking affluent residences, the allure of high-yielding investments and the resiliency of the Indian real estate market have been major draws.

Indian luxury real estate developers are now offering luxury properties that meet global standards, not only for Indian purchasers but also for high-net-worth individuals (HNIs) and non-resident Indians (NRIs) who have shown renewed interest.

Another reason for this pent-up demand is India's ultra-luxury real estate market's long-term investment and business prospects.

Delhi-NCR, Mumbai, and Hyderabad emerged as the most prominent markets for luxury housing among the main cities, accounting for close to 90 percent of the total sales of luxury homes in the top seven Indian cities.

In the first half of 2023, Delhi-NCR led with 2,900 luxury residences sold, followed by Mumbai with 1,900 units and Hyderabad with 1,400 units.

According to real estate experts, the luxury real estate market in India experienced a significant uptick in 2023, as affluent purchasers sought out high-end properties with contemporary amenities and refined designs. 

Several factors contribute to this rising demand for Indian luxury properties:

Consumers are willing to invest in properties that provide an opulent living experience because they are adopting a more modern and sophisticated lifestyle.

The altering lifestyle preferences of affluent purchasers have a direct impact on their decision to invest in luxury real estate.

Rapid urbanisation in India has resulted in a greater migration of people into cities, motivated by the search for better employment opportunities, enhanced infrastructure, and higher living standards.

There is an increase in disposable income among individuals, especially in urban areas where luxury real estate is prevalent.

A robust second quarter for luxury home sales

In the second quarter of 2023, the luxury housing market experienced a remarkable 121% increase in sales year-over-year. The total number of opulent residences sold for the quarter was 3,100, compared to 1,400 for the same period in the prior year.

HNIs and NRIs favour opulent residencesIncreasing numbers of high-net-worth individuals and their demand for exclusive real estate have contributed to this trend. The number of non-resident Indians investing in Indian real estate has increased significantly. In recent years, there has been a significant transition in purchasing behaviour.

The pandemic has prompted purchasers to reevaluate their living space preferences, with a growing preference for larger, more personalised homes. Consumers want more dwellings that not only provide comfort and security, but also accommodate their evolving requirements, such as dedicated workstations, recreational amenities, and green views, among others.

The increase in luxury property sales during the first half of 2023 reflects the evolving tastes of the aspirational class and the confidence of NRIs in India's real estate market. Increasing demand for enhanced amenities and capacious living areas, coupled with increased NRI investments, depicts a bright future for the Indian luxury real estate market.