India's luxury housing market has entered a new era of unprecedented growth, as evidenced by significant increase in average ticket sizes (property price) and total sales values across the top seven metropolitan cities. A detailed analysis by the CREDAI-MCHI research team sheds light on how urban housing markets are evolving to accommodate the surge in high-end property demand.
Between April and September 2024, sales data revealed over 227,400 housing units valued at nearly Rs279,309 crore. This marks an 18% increase in total sales value compared to the same period last year, despite a modest 3% decline in the total number of units sold.
The average price of homes sold across these cities rose sharply to Rs 123 crore, up from Rs 1crore in the same period last India’s luxury housing marIn the Mumbai Metropolitan Region (MMR), the market has stayed steady, proving why it is considered the country’s most developed real estate hub. The average property price remained unchanged at Rs147 crore.
The total sales value increased slightly by 2%, from Rs1,12,356 crore to Rs1,14,529 crore. Similarly, the number of properties sold grew by 2%, from 76,410 to 77,735. In Pune, the real estate market is focusing more on affordable luxury housing. The average property price went up by 29%, rising from Rs66 lakh to Rs85 lakh.
The total sales value towards premium living: Across the board, buyers are demonstrating clear preference for larger, well-equipped homes in prime locations. Resilient demand for high-end properties: The consistent rise in sales value reflects robust demand, even in markets where unit sales declined.
Regional variations in growth: Cities like NCR, Bengaluru, and Hyderabad have emerged as leaders in ticket size growth, showcasing their appeal among affluent buyers. also grew by 19%, increasing from Rs28,590 crore to Rs34,033 crore.
However, the number of homes sold dropped by 8%, from 43,560 to 40,190, which shows that while fewer homes were sold, they were of higher value. The growth in the luxury real estate market underlines the importance of enabling policies and legal frameworks to support development.
Simplifying the regulatory processes for big projects can save time and reduce costs for developers. Offering benefits like tax breaks and easier financing can encourage more people to invest in premium housing. Ensuring clear property documents, compliance with RERA rules, and fair pricing will increase trust among buyers.
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