[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
India’s high-end real estate sector, particularly residential properties valued at Rs 4 crore and above, saw a robust 37.8% year-on-year sales surge from January to September 2024, as per a report by a top real estate consultancy firm.Property consultancy firm CBRE said luxury unit sales reached 12,625 in the first nine months of 2024, up from 9,160 units in the same period last year, with Delhi-NCR, Mumbai, and Hyderabad accounting for nearly 90% of total sales across the top seven cities.During this period, Delhi-NCR led luxury sales with 5,855 units sold, a 72% year-on-year increase, followed by Mumbai with 3,820 units, an 18% growth, and Pune, which saw a significant surge with 810 luxury units sold, noting a significant rise in sales.The interest in upscale residential properties can be largely attributed to the growing preference among affluent buyers for better amenities and larger living spaces that suit their lifestyles.Additionally, the growing aspirational demographic, along with an increasing number of non-resident Indian (NRI) and savvy domestic investors, has significantly boosted demand for luxury real estate.”After a strong performance in the first half of 2024 and the seasonal boost during festivals, we expect sales and new launches to exceed 300,000 units for the second consecutive year,” said Anshuman Magazine, chairman & CEO of India, South-East Asia, Middle East & Africa, CBRE.Industry experts say that properties are influenced by factors such as unsold inventory, project quality, and access to infrastructure, but the high end of the market will remain robust.”We also foresee increased demand in the high-end and premium segments, with traditional mid-range markets like Noida, Bengaluru, Pune, and Chennai gravitating toward luxury developments. As the market shifts from bungalows to modern apartments and penthouses, the premiumisation of amenities will be a key differentiator in luxury projects,” added Magazine.The July-September quarter of 2024 continued this upward trend, with major cities experiencing a substantial 82% year-on-year surge in luxury housing sales.”In the past 2-3 years, India has seen a remarkable shift in the luxury and ultra-luxury housing segments, which have outpaced the growth of affordable housing for the first time. As the market matures, high-value residences are becoming key drivers for developers, who prioritise unique differentiators and curated experiences beyond standard amenities,” said Sunil Pareek, executive director of Assetz Property Group.”Ready-to-move-in luxury properties are completely sold out, underscoring the strong appetite among buyers for premium, hassle-free living options. High-net-worth individuals are increasingly seeking exclusive homes that offer not just comfort but a statement of lifestyle,” said Vijay Chugani, founder of ZenXChugs, a luxury realtor based in Bengaluru.Given the strong performance in H1 2024 and the sector’s tendency to peak during the festive season, we forecast both sales and new launches of residential units to remain elevated. However, high capital values amidst an uncertain global economic scenario may lead homebuyers to take a wait-and-watch approach to purchasing decisions. In addition, as erstwhile price points realign, we expect the high-end or premium categories Rs 1 to 2 crore and Rs 2 to 4 crore, respectively to witness strong demand. Additionally, the traditional mid-end segment-dominated markets such as Noida, Bengaluru, Pune, and Chennai are expected to continue gravitating increasingly towards high-end development.
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