Anarock, a real estate consultancy firm, has analyzed data revealing a staggering 115% annual increase in luxury home sales during the first nine months of 2023, with Hyderabad and Pune leading the way. In India's top seven cities—Mumbai, NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai—of the 3.49 lakh units sold during this period, approximately 24% or 84,400 units were luxury homes, priced at Rs 1.5 crore and above. This marks a significant rise compared to the same period in 2022, where only 14% (approximately 39,300 units) of the 2.73 lakh units sold were in the luxury category. The data indicates a remarkable surge in the demand for luxury housing, reflecting a dynamic shift in the real estate market.
In the first nine months of 2023, Hyderabad witnessed a remarkable 260% surge in luxury housing sales, with 13,630 units sold compared to 3,790 units in the same period last year. The city recorded a total of 44,220 home sales across all budget categories during this period, with luxury homes constituting 31% of the market share.
Pune followed closely with the second-highest annual growth of 191%, recording approximately 6,850 luxury home sales in the first nine months of 2023, a significant increase from 2,350 units in the corresponding period of 2022.
Chennai experienced a notable 143% rise in luxury housing sales during this period, while Kolkata saw a 69% annual increase, with luxury home sales climbing from approximately 950 units in 9M 2022 to around 1,610 units in 9M 2023. Of the total 17,280 units sold in Kolkata across all budget categories in 9M 2023, luxury homes comprised only 9%.
Anuj Puri, Chairman of Anarock Group, highlighted the outstanding performance of MMR, NCR, and Hyderabad in luxury housing sales during the first nine months of 2023. Together, these three cities accounted for approximately 63,390 units sold, a significant increase from the 30,820 luxury homes sold in the same period in 2022. Interestingly, there was no deceleration in luxury housing sales across the top 7 cities; instead, they all experienced a surge, as noted by Puri.
In a noteworthy shift, the July-September quarter of 2023 marked the first time in India where sales of high-end homes priced above Rs 1 crore surpassed the demand in the affordable segment, priced below Rs 50 lakh. A report by real estate consultancy Knight Frank revealed that the number of homes sold in India during this quarter reached a six-year high, totaling 82,612 units. This figure represented a 12% increase compared to the 73,691 units sold in the corresponding quarter of the previous year.
During the July-September period, residential assets saw a notable increase in institutional investments, reaching $298.3 million, marking a 71% rise from the same period last year, as reported by real estate consultant Vestian.During the same period last year, investments from institutions in residential assets totaled $174.3 million.
While the residential sector continued to attract the highest institutional investments across various asset classes in the third quarter of this calendar year, its share decreased slightly to 44% in Q3 2023 from 47% a year earlier.
Notably, domestic investors played a substantial role, contributing to 71% of the total institutional investments received in Q3 2023. Conversely, the share of foreign investors declined to 27% in Q3 2023 from 55% in Q3 2022. However, the total institutional inflow during the July-September period witnessed a 57% decline compared to the previous quarter, primarily due to a significant drop in foreign fund inflow.
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