Luxury housing boom in these 7 cities — 6-month sales top 2021 yearly graph

Luxury apartments sales of this year was priced at over Rs 1.5 crore stood at 25,680 units across seven major cities during January-June 2022, surpassing yearly sales in the previous three years, according to Anarock.

In the first half of this year, the Mumbai Metropolitan Region (MMR) accounted for more than half of all luxury housing sales.

According to property expert Anarock, the luxury home market has done “remarkably well” this year, aided by developer discounts and demand from non-resident Indians (NRIs).

As per the data, luxury property sales were 25,680 units in January-June 2022, which is greater than the 21,700 units sold in the entire 2021 calendar year across seven major cities: Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.

Due to the impact of the pandemic, sales of luxury flats plummeted to 8,470 units in 2020, down from 17,740 units in 2019. As per the report, the share of luxury residences in total property sales of 1.84 lakh units across the seven cities increased to 14 percent in the first six months of 2022.

When compared to the pre-pandemic year of 2019, the percentage of luxury properties in overall sales was just 7 percent. Anarock Chairman Anuj Puri said it is end-users who are driving luxury house demand.

“Discounts by developers made luxury properties very attractive for these buyers and NRIs have also been snapping up luxury homes in India because of the favourable exchange rate,” he informed.

Housing sales in Chennai were up 86 per cent to 12,530 units in 2021 from 6,740 units in 2020.

In Kolkata, sales increased to 13,080 units in 2021 from 7,150 units in 2020.

“Extrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India,” Anarock Chairman Anuj Puri said.

He hoped sales to reach pre-COVID level in 2022 and noted that demand would further consolidate towards trusted developers “Input cost pressure and supply chain issues may induce a 5-8 per cent increase in property prices,” Puri pointed out.

On supply side, Anarock said that new launches increased 85 per cent to 2,36,700 units across these seven cities in 2021 as against 1,28,000 units in the previous year.

The new launches have reached pre-pandemic 2019 levels. In 2019, new launches stood at 2,36,570 units.