Indian Economy News

Luxury realty booms: Homes above US$ 119,775 (Rs. 1 crore) now 41% of India's housing sales

India's residential real estate sector is seeing robust growth, driven by a flourishing economy and rising demand for upscale housing. According to Knight Frank's first half 2024 report, residential unit sales in India's top eight cities surged by 11%, reaching 173,241 units, the highest in 11 years. This surge is prominently led by a shift towards premium properties, with homes priced at US$ 119,775 (Rs. 1 crore) and above for 41% of total sales, up from 30% in the previous year.

Developers responded with a 5.8% YoY increase in new launches, totalling 183,401 units, indicating a strategic adjustment to meet evolving consumer preferences. Mumbai emerged as the top market with 47,259 units sold, driven by a notable 117% rise in luxury home sales exceeding US$ 11,978 (Rs. 10 million). Despite concerns over declining affordable housing shares, down from 32% to 27% YoY in the first half of 2024, the sector remains optimistic, with strong economic fundamentals and government support like the PMAY scheme expected to sustain growth through 2024.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.