Sales of Luxury Real Estate in India Increase by 100 Percent in The First Six Months of 2022, With The Mumbai Metropolitan Region Leading The Way

A whopping 14,000 of the total 184,000 homes that were sold in India's seven most populous cities during the relevant time period were luxury homes.

The demand for high-end, automated luxury residences in India that utilise surveillance technology and AI-based features like automatic temperature management, lighting, and voice control almost doubled in the first half (H1) of 2022 compared to the same time in the previous year.

According to the research conducted by Anarock, the seven cities in India with the highest populations—Mumbai, Delhi, the Greater Hyderabad Area, Bangalore, Pune, Chennai, and Kolkata—accounted for 184,000 sales during the first half of the year 2022. Mansions made up 25,680 of the total number of homes, which is one quarter of the total. More than one and a half crore Indian rupees was required to purchase each flat. Only 7% (17,740) of the total 261,000 units that were sold within the same time period in 2019 were regarded to be luxury residences.

In the first half of 2022, the Greater Metropolitan Region (MMR) had the highest number of luxury home sales in the National Capital Region (NCR), with over 13,670 units changing hands. In 2019, there were a total of 11,890 transactions that included luxury real estate.

The chairman of the Anarock Group, Anuj Puri, made the following statement in response to the rise in sales of luxury homes: "These sales statistics are even more astonishing, if we realise that it is predominantly end-users who are driving luxury housing purchases across these cities today." The theoretical and practical repercussions for the current status of the economy are obvious. The high net worth individuals are price conscious despite the fact that the pandemic had a less impact on their purchasing patterns than it did on those of the broader population. Due to India's favourable exchange rate and developer discounts on high-end projects, luxury real estate in the nation has been attracting buyers from outside the country. These buyers have been purchasing property in India.

In the first half of 2022, developers met the pent-up demand for high-end housing in the seven major cities by releasing 28,000 units, with each unit costing more than Rs 1.5 crore. This was done in order to meet the average price of a unit, which was more than Rs 1.5 crore. On the other hand, this year saw the construction of around 28,960 luxury residences.

There are an estimated 97,140 luxury and ultra-luxury residences up for sale in the top seven cities, the bulk of which are found in MMR (46%) with its 44,170 available properties.

The city of Hyderabad has 11,730 housing units available, making it the city with the third-highest total number of housing units after NCR (19,470 units) and Hyderabad. With just 1,490 high-end housing units available, Kolkata is the city with the fewest options. Only 630 of these residences were sold during the first half of the year 2022.

According to Anarock's measurements, the proportion of sales that comprised of affordable housing (units with prices of less than Rs 40 lakh) decreased from 38 percent in 2019 to 31 percent in the first half of 2022. The percentage decline in sales in Chennai was 7.5 percent, while the drop in sales in Hyderabad was 17 percent (16 percent).

According to the findings of the study, one of the contributing factors is the economic slowdown that was caused by the pandemic of the Covivirus H19.