Discover the most coveted luxury real estate markets of 2024, showcasing key investment destinations for Ultra High Net Worth Individuals (UHNWIs) and revealing the unique factors that set these locations apart.
Key Markets for Luxury Real Estate Investment in India in 2024: The luxury real estate market in India is experiencing unprecedented growth, reflecting the evolving aspirations of affluent homebuyers. According to Mordor Intelligence, the market is estimated at USD 38.02 billion in 2024 and will reach a remarkable USD 101.92 billion by 2029 – reflecting a compound annual growth rate (CAGR) of 21.81%).
Source: https://www.mordorintelligence.com/industry-reports/india-luxury-residential-real-estate-market
Q1 2024 achieved the highest residential sales to date:
It achieved the highest residential sales of any previous Q1, with a remarkable 20% increase compared to the same period in 2023, totalling 74,486 units sold. This marks the second consecutive quarter where sales have surpassed 74,000 units, following the record-breaking performance of Q4 2023 (75,591 units). These results lay a solid foundation for continued growth in the residential market, exceeding the sales performance of 2023.
Luxury segment experienced significant growth:
There have been notable shifts in the sales distribution across different segments of the residential market. In the luxury segment, which comprises apartments priced at INR 3 crore and above, the share of quarterly sales has witnessed a significant increase, rising from 5% in Q1 2022 to 11% in Q1 2024. This growth is particularly pronounced in the Delhi NCR region, where, in Q1 2024, around 44% of sales were in the luxury segment, fuelled by a high number of launches and strong buyer response.
In contrast, the affordable segment, encompassing apartments priced below INR 50 lakh, has experienced a decline in its share of sales, dropping from 27% to 15%. However, it is worth noting that in the overall sales volume of the top seven cities, the INR 50 lakh-75 lakh segment still retains its prominence and holds the largest share.
Q1 2024 saw the highest number of new launches ever recorded in the previous first quarters: The first quarter of 2024 witnessed a record-breaking number of residential launches with 79,110 units, surpassing all previous Q1 numbers.
This represents a y-o-y growth of 5%
Source: Real Estate Intelligence Service (REIS), JLL Research
Q1 2024: At a glance
Source: https://www.jll.co.in/en/trends-and-insights/research/residential-market-update-q1-2024
Key Trends:
- Bengaluru, MMR, and Pune led Q1 2024 residential sales, collectively contributing 47,388 units, or approximately 64% of total sales. Bengaluru and Pune saw the highest sales in the INR 50 lakh-75 lakh price segment, while Mumbai recorded the most sales in the INR 1.5 crore-3 crore segment.
- Mumbai, Hyderabad, and Pune accounted for 65% of new launches. Mumbai saw over 20,000 units launched during the quarter, with approximately 15% of new launches in both Mumbai and Hyderabad priced at INR 3 crore and above. In Pune, around 33% of the launches were priced between INR 75 lakh and INR 1 crore
