New Delhi [India], May 14 : Experts in the real estate sector said the luxury housing market, which had been dominating India's realty scene for two years, will continue through 2023.
Real estate consulting firm CBRE South Asia in a report revealed that India's luxury housing market recorded a 151 per cent increase year-on-year (YoY) in the first quarter of calendar 2023.
According to the report, the need for better amenities and bigger space is driving the current trend. It also goes on to predict that this trend will prevail through 2023 and even anticipates strong launch momentum over the next couple of months.
One of the experts in the industry went on to say that millennials and young homebuyers today want their home to be an extension of themselves. The expert also added that NRI investments in Indian real estate have also skyrocketed, which is further propelling the demand for luxury real estate.
Aditya Kushwaha, Chief Executive Officer and Director, Axis Ecorp, said, "In the post-pandemic world, the interest in homeownership has increased overall. The luxury housing market has been dominating the real estate trends for the last two years, and the same is being reflected in 2023 as well."
Kushwaha said that they have seen a spike in the interest levels for our projects Axis Yog Villas and Axis Lake City and added, "Additionally, a lot more emphasis is being attached to amenities and better living standards, and there is far greater demand for holiday homes and villas, independent floors and plotted development."
According to another expert, luxury homes will clock a similar growth trajectory for the rest of 2023.
Vinit Dungarwal, Director, AMs Project Consultants, told , "Luxury properties in metros have clocked impressive growth in the first quarter of 2023. In this new normal, homebuyers are attaching a lot more value to the community, design, surrounding, greenery, amenities and services, and this trend is fuelling the demand for luxury homes.
According to the report of CBRE, Luxury housing sales in Delhi-National Capital Region (NCR) zoomed by over 216 per cent, Mumbai by 44 per cent, Hyderabad by 800 per cent, Kolkata by 100 per cent and Pune by nearly 13 times on a year-on-year basis for the quarter ending March 2023. Mumbai led in the number of total housing units sold at 19,000 units, followed by Pune with 18,000 units, Delhi-NCR with 11,600 units and Bengaluru with 11,500 units.
Anshuman Magazine, chairman and Chief Executive Officer for India, South-East Asia, Middle East and Africa, CBRE, said, "We foresee demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. The momentum is expected to continue in the coming quarters as well. Projects with better amenities, focus on health and safety, and clean surroundings are likely to gain an edge amidst evolving consumer preferences."
As large developers foray into Tier-II cities, the report expects to see a higher number of joint ventures and joint development initiatives as they strike partnerships with local players with an aim to manage regulatory hurdles and understand consumer preferences.
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