Luxury properties accounted for 12% of total sales in the first quarter of 2022, up from 7% in the first quarter of 2019, as ultra-high net worth individuals scrambled to purchase larger homes to accommodate the need for more space during the pandemic.
“New supply in the luxury category in the first quarter of 2022 is the highest in a given quarter in the past three years. According to Anarock research, as many as 13,330 units were launched in the luxury category across the seven major cities. The previous quarter of said Anuj Puri, Chairman of Anarock Group, said that the fourth quarter of 2021 saw the second highest supply in the class with nearly 9,350 units, and the first quarter of 2020 saw only 4,040 new units.
“Luxury homes are no longer all about bricks and mortar, but an all-encompassing living experience, an exclusive address complete with an unparalleled lifestyle, delivered in the privacy and comfort of home. One of the major trends this year has been the influx of arrivals,” said Akash Ori, Group CEO and Business Director at DLF. Home Developers Ltd.
Earlier this year, DLF Ltd., India’s largest listed real estate company, announced sales of Rs. 1,500 crore from the first phase of its highly anticipated luxury residential project in New Delhi, ONE Midtown.
Experts say that in the luxury sector, demand began to rise significantly, right after the first wave of induced lockdowns ended.
“The pandemic has amplified the need and desire for larger homes, with private lawns and open spaces, private rooms for working and studying from home, and leisure and lifestyle requirements such as the gym and swimming pool,” said Akash Puri, International Director. Real Estate India International Sotheby’s.
Sotheby’s International Realty India, which deals in luxury real estate, has recorded year-on-year growth of more than 30% consecutively for the past two years – 2020 and 2021 and expects to close this year with better sales figures.
“There is an increasing need for luxury housing in the North and South region as compared to the eastern and western parts of India. The fiscal year 21-22 has been a year of new innovations, which has allowed us to push the envelope and focus more on digital performance in India,” said Sanjay Dutt, Managing Director and CEO. Tata Realty and Infrastructure Limited.
New launch data released by ANAROCK indicates a new oversupply in luxury segment prices and that there was a 230% jump in the first quarter of 2022 compared to the pre-pandemic period in the first quarter of 2020.
The developers say that most of the buyers are wealthy people looking for a lifestyle upgrade.
“The growing demand for all types of luxury properties, such as luxury and ultra-luxury condominiums and villas, has captured the lion’s share of the market and sparked a desire for high-end amenities and wide open spaces with a serene and peaceful environment,” said Amarjet Bakshi, CMD, Central Park.