Hyderabad joins big boys Delhi and Mumbai in love for homes worth ₹4 crore

• Hyderabad’s luxury home sales zoomed 12x in nine months ended September, as compared to last year.
• Delhi, Mumbai and Hyderabad dominated the luxury home sales market in the first nine months of the year.
• CBRE expects 2023’s festive home sales to hit a three-year high, crossing 1.5 lakh units.
  

India’s top seven cities are showing a strong affinity for luxury homes that are priced around ₹4 crore. The sales of such units grew 97% in the nine months ended 2023, as compared to the same period last year and Hyderabad outdid them all — by showing a whopping 12 times growth in the number of such units sold, as per a report by CBRE.

In the first nine months of 2022, 138 units of luxury homes were sold in Hyderabad. In the same period this year, the number zoomed to 1,660. In fact, it’s the third city in the top seven cities list that include Delhi, Mumbai, Kolkata, Pune, Bangalore and Chennai — that recorded sales of over 1,000 such units.

In other words, Hyderabad has joined Mumbai and Delhi in dominating this market – accounting for 90% of the total luxury housing sales across the top seven cities. Delhi-NCR topped with a share of about 37%. This was followed by Mumbai, Hyderabad accounting for approximately 35% and 18%, respectively.

While Bangalore and Chennai saw little growth, Kolkata is the only city where luxury home sales fell.

Source: CBRE

Festive sales expected to break records

The momentum seen in overall home sales this year is expected to seep into this festive season. CBRE anticipates that 2023 festive housing sales are set to break a three-year record, exceeding the 1,50,000-unit mark.

"The October-December 2023 quarter is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts. The premium and luxury segment is expected to emerge as a sought-after investment avenue, particularly for HNIs and NRIs seeking to safeguard their investments amid global macroeconomic uncertainties,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

Over 80,000 residential units were sold during the July-September ’23 quarter, while new unit launches stood at 72,000 during the same period. Mumbai, Hyderabad and Pune dominated the market for apartment launches, having a cumulative share of 63%.

High-end and premium categories remained key sales drivers with a cumulative share of 35%, while the mid-end category’s share stood at 46% during the September quarter.

“As the residential cycle matures amidst inflationary pressures, we have witnessed increasing demand in the mid-end and premium categories,” said Magazine.