During a period where the sale of affordable housing units, priced at less than Rs 40 lakh, has faced a decline, the luxury apartment sector has experienced robust sales nationwide, according to industry insiders. Real estate consultancy firm Anarock’s analysis of sales data reveals that in the first half of 2022, 25,680 luxury units (priced above Rs 1.5 crore) were sold, surpassing the 2019 calendar year total of 17,740 units.
The Mumbai Metropolitan Region (MMR) stands out with the highest sales in this category, recording 13,670 units, followed by the National Capital Region of Delhi (NCR) with 4,160 units. Between these two markets, there were 11,890 luxury unit sales in 2019. Other cities, including Pune (1,460), Kolkata (630), Bengaluru (2,430), Chennai (920), and Hyderabad (2,420), have also seen significant growth in the sales of luxury and ultra-luxury apartments, as per the Anarock report.
This trend contrasts with the decline in affordable housing sales, which accounted for 31% of total units sold in the first half of the calendar year, down from 38% in 2019. Out of the 1.84 lakh homes sold by the end of June 2022, 57,040 were in the affordable sector. Anarock attributes this drop to the impact of the pandemic on the target customers of affordable housing.
Anarock Group chairman Anuj Puri described the sales figures as remarkable, highlighting that end-users are primarily driving luxury housing sales. He emphasized the significance of overall economic performance, noting that even though buyers in this budget segment were less affected by the pandemic, high-net-worth individuals (HNIs) remain cost-conscious. Developers’ discounts have made luxury properties attractive to these buyers, and favorable exchange rates have led NRIs to invest in luxury homes in India.