India’s luxury housing market soars to new heights
Developers report increased sales of high-price apartments with exclusive amenities
India’s luxury housing market is experiencing a resurgence, with property developers reporting increased demand for high-price apartments offering additional amenities such as concierge services, spas, multi-level parking, green open spaces, and heated pools.
According to Business World, a project in Gurugram sold INR81.82 billion (USD1 billion) worth of properties in 72 hours while rival developers are offering INR245.46 million apartments to clients selected by invitation. India’s supply of new luxury homes has been constrained in recent years, but data shows that luxury condominiums, defined as those selling above INR15 million rupees, accounted for 17 percent of all housing launches in 2022, an at least five-year high.
A record 65,700 luxury units were sold in 2022, three times the previous year, with Mumbai, New Delhi, and Hyderabad leading sales. As India’s wealthy are showing increased willingness to spend, developers are creating exclusive societies to cater to millionaires and billionaires.
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India’s largest real estate developer sold flats worth over INR80 billion in its luxury high-rise residential project in Gurugram in just three days, even before the project’s official launch, as reported by media company The Week. This demand is due to the pent-up demand for larger homes with facilities such as swimming pools, clubhouses, parking and concierge services, while the supply for luxury housing projects in Gurugram has been limited over the past few years.
The recent spike in property deals is also attributed to the cap on benefits on long-term capital gains (LTCG) deduction announced in this year’s budget. However, it is not the only reason as the strong desire for home ownership, especially for those in the higher-income segment, has been observed.
The premium real estate market is experiencing robust economic momentum in most Indian cities, with many big-ticket deals in the high-end housing space in Mumbai and Bengaluru. Furthermore, high-end developments that meet the desires of wealthy consumers have been created, which has increased international investment in recent years.
The Property Report editors wrote this article. For more information, email: [email protected].
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