Luxury housing share hits 34% in new launches

Among the Reraapproved housing project launches in Q1 of calendar year 2024, high-end and luxury segment accounted for 34 per cent, continuing the trend witnessed since pandemic.

The high-end and luxury segment continued its reign in the quarter, capturing approximately 34 per cent of launches in Q1-2024. This segment’s share has steadily increased from a mere 1314 per cent in 2019 to more than 30 per cent post 2022, according to Cushman and Wakefield. In the National Capital Region, high-end and luxury products captured 61 per cent of the total launches.

“Over the past year, a significant rise in demand for high-end and luxury properties has emerged at both national and local levels. This shift reflects a change in homebuyers’ growing desire to invest in a place not only to live, but as a high-quality asset that reflects their lifestyle aspirations,” said Shalin Raina, managing director, Residential Services, Cushman and Wakefield.

Mid-segment housing continues to be the volume leader, accounting for over 50 per cent of launches, consistent with the past 3-4 years. In the mid-segment, Mumbai dominated the launches with 61 per cent share. The affordable housing segment, meanwhile, saw a decline, holding just 13 per cent of launches this quarter. Developers may

AMONG THE quarterly launches, Mumbai and Pune accounted for the highest contributions with 28% and 16% respectively. This was followed by Hyderabad and Bangalore with 16% and 13%.

be hesitant to invest in this segment due to potentially lower margins and stricter regulations for claiming incentives, particularly when high-end and luxury, and mid-segments are experiencing high demand.

Meanwhile, supply of RERA approved residential projects declined 15 per cent in the first quarter of calendar year 2024. The launch of RERA approved units across top 8 cities stood at 69,000 against 67,960 units in the same quarter last year. Against 74,344 units in Q4 2023, the launches were 7 per cent lesser.

Among the quarterly launches, Mumbai and Pune accounted for the highest contributions with 28 per cent and 16 per cent respectively. This was followed by Hyderabad and Bangalore with 16 per cent and 13 per cent.