Property developers are reporting a 10% to 30% upswing in pre-Diwali residential sales this year, particularly in the premium and luxury segments. This growth is attributed to the increasing demand for larger homes driven by expanding cityscapes, rising incomes, and heightened aspirations. According to Ramesh Ranganathan, CEO of K Raheja Corp Homes, the luxury real estate sector is witnessing a surge in new projects with prices ranging from ₹2-3 crore to as high as ₹15 crore.
In Q3CY23, units priced over ₹2 crore saw a significant 75% jump, as reported by Knight Frank India. Niranjan Hiranandani, managing director at Hiranandani Group, noted a positive response to their recent offering in Powai, resulting in a nearly 10% sales growth. Anarock Property Consultants reported 92,160 units sold in the top seven cities during the festive quarter of 2022, projecting at least a 30% yearly growth in the ongoing festive quarter of 2023.
Developers have witnessed a price increase of 5% to 15% compared to last Diwali, varying based on the project, micro market, and cities. Irfan Razack, chairman and managing director at Prestige Projects Estates, cited a general price increase of 10%-15% in Bangalore over the last year. In Mumbai, Hiranandani Group observed an average price growth of 5-7% in the past year. Some micro markets, such as Whitefield in Bengaluru and Gachibowli and Kondapur in Hyderabad, saw an 18% jump in average residential prices.
Despite the price rise, developers in the premium and luxury segment are not offering discounts, as the demand remains robust. Ranganathan mentioned that K Raheja Corp is unlikely to offer discounts during the festive quarter in Mumbai, Pune, Hyderabad, and Bengaluru. Developers, including Assetz Property Group and K Raheja Corp, emphasize strong sales driven by attractive bank schemes, compelling product ranges, and positive market conditions. Overall, property prices have witnessed an increase of 10% to 20% in the last one to two years.
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