Luxury home sales up 9% during 2019

Overall sale of luxury properties across the key markets of National Capital Region (NCR), Mumbai Metropolitan Region (MMR) and Bengaluru rose by 9 per cent in 2019 on a year-on-year (YoY) basis to 40,376 units, according to a PropEquity report.

As per the report, supply of luxury units rose by 7 per cent in 2019 across the three metros to 31,230 units and the unsold inventory in the segment declined 9 per cent 95,965 units.

Sale of luxury housing in Delhi-NCR witnessed a growth of 17 per cent in 2019, while Bengaluru and MMR saw a growth of 10 per cent and 6 per cent respectively.

Samir Jasuja, founder and MD of PropEquity, said: "There was a limited demand for luxury housing projects across India with ready-to-move-in options by Grade-A developers seeing some traction in 2019.

Going ahead, we can expect some decent uptake for ready to move in and nearing completion luxury projects by renowned developers in top cities."

He further said that as corona pandemic is expected to subside in the next few months, the market may witness a positive spike in luxury demand as buyers who were delaying their decisions would enter the market.

"New supply of luxury housing units in Delhi-NCR jumped by 37 per cent to 8,026 units in 2019, whereas Mumbai Metropolitan Region (MMR) saw a marginal growth of only 3 per cent to 15,720 units and new supply fell by 8 per cent to 7,484 units in the same period in Bengaluru," it said the report.

It said that the unsold stock in Delhi-NCR decreased by 3 per cent to 22,806 units in 2019 as compared to the previous year while in Mumbai Metropolitan Region (MMR) and Bengaluru, it fell by 9 per cent to 58,115 units and 13 percent to 15,044 units respectively.

Ankush Kaul, President, Sales & Marketing at Ambience Group, said: "The luxury market in the country continues to have a stable foothold when it is seen from a sales point of view.

Having said this, a few markets in the country continue to perform despite odds and challenges.

I believe, Noida and Gurgaon market are one among those markets, where luxury housing, in general, continues to perform on account of various intrinsic factors."

He said that the factors behind improved demand in NCR include rationalised price points, improvement in basic services infrastructure in and around the region and the improvement in road and metro network across the sectors.