Rising Demand for Luxury Housing Fuels Price Surge!

Lower- and middle-income customers’ desires may have been affected by rising housing prices and increasing borrowing costs, but luxury home sales are brisk and developers are concentrating on them. 

 Prices have increased by around a quarter over the previous five years, with the majority of the rise coming in recent years, as a result of increased demand for luxury and high-end real estate. The cost of a luxury residence exceeds £4 million. According to data from the real estate consultant CBRE South Asia, sales of luxury residences increased by 130% in the first half of 2023, with sales in major locations such as Hyderabad increasing by a factor of 14 and in the Delhi metropolitan region. Mumbai, Delhi NCR, Pune, Bengaluru, Kolkata, Hyderabad, and Chennai are the seven main cities and areas in India that are covered by the statistics. 6,900 units of luxury items were sold overall between January and June, with Mumbai, Hyderabad, and Delhi-NCR accounting for 90% of those sales. Sales were robust in his March and June quarters, and the second quarter saw an increase in the rate. Demand for luxury and high-end houses was sluggish a few years ago, and cities have struggled to clear developer inventories, particularly those of ultra-luxury properties.

Real estate developers concentrated on the mass and middle classes once the coronavirus struck and housing demand increased once more. There was a demand coming from. However, the demand in these markets has been tempered by continuously rising mortgage rates and trends in real estate prices. The less price-sensitive premium sector is another market that developers are focusing on.  Many of the newly announced premium developments by developers like Lodha and Prestige Estates have had significant sales.

Rise in price 

Home prices have increased by 6% to 7% on average practically every quarter in recent years. For instance, the June quarter saw a 7% year-over-year increase in housing prices, according to the CREDAI study. Positive changes were observed in the luxury market. Developers are launching high-end projects in response to the increased demand for big apartments, which has led to an increase in the price of real estate for homes now under construction in cities like Kolkata, Hyderabad, Delhi NCR, and Bengaluru. The report said that. 

While prices in this market had been static even before the pandemic, according to ANAROCK Group Chairman Anuj Puri, “luxury real estate has seen the most substantial price gains, with very strong sales well supported by a good supply pipeline.” I’ll demonstrate to you, he said. Hyderabad, he pointed out, holds a significant place in the luxury market segment, enjoying tremendous buyer demand despite increasing costs.

Source: The Hindu

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