Representative image showing the inside of a house.
Credit: Pixabay
Luxury housing supply comprising units priced at Rs 1.5 crore and above touched a five-year quarterly high in the 3-month period ended September 2023, according to a new report released by property consultancy Anarock on Monday.
“Post pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space,” said Prashant Thakur, who heads research at the consultancy.
Others agreed.
“India's robust economic growth has fostered a significant cohort of high-net-worth individuals who view opulent residences as potent symbols of their success,” said Angad Bedi, who is a managing director at BCD Group. Furthermore, the allure of exclusivity, coupled with the ready availability of modern amenities like cutting-edge security systems, private pools and sumptuous interiors have stoked the demand for luxury properties, he added.
As a new generation of young professionals - often referred to as millennials - reshapes the market, many young Indians, including startup founders, CXOs and those with high disposable incomes, have become the new clientele for luxury homes, highlighted Darshan Govindaraju, Director, Vaishnavi Group.
Of the total 1,16,220 housing units launched in the top-seven markets during the July - September quarter, 31,180 fell in the luxury bracket accounting for a 27 per cent share. Remarkably, the share of the segment stood at a meagre 9 per cent during the same period in 2018.
Hyderabad made the highest contribution with a roll out of approximately 14,340 luxury housing units during the period under review, followed by the Mumbai Metropolitan Region at approximately 7,830 units.
In contrast, share of the affordable housing segment with homes priced at Rs 40 lakh and under, reduced further to 18 per cent in the second quarter of the fiscal year. The supply share of the segment during the same period in 2018 stood at a whopping 42 per cent. Industry experts blame this decline on surging prices, increasing home loan rates and the lingering effects of the Covid-19 pandemic.