Discounts, favorable exchange rates boost luxury home sales

• The part of luxury houses in total, home sales have doubled in the top seven cities, according to a report.
• The Anarock report says it’s the end users who drive these sales.
• In addition to builders offering discounts, NRAs also take advantage of favorable exchange rates to purchase expensive properties.
• However, the share of affordable homes in total home sales declined in the reporting period.

Luxury home sales in India surged in the first half of 2022 in the country’s seven largest cities.

According to a report by Anarock Research, 25,700 luxury homes were sold in the first half of the year, accounting for 14% of total home sales. This share is twice as high as in the first half of the pre-pandemic year 2019, when it was just 7% of total home sales, with 17,740 units sold.

Luxury houses are defined as those properties that cost ₹ 1.5 crore or more.

These sales were led by: Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR), with high real estate prices. MMRThe share of luxury home sales rose to 25% of total sales from 13% in 2019, while NCR saw its share of total sales rise sharply by 12% in the reporting period, from 4% in 2019.

All other cities – be it Bangalore, Hyderabad, Pune, Kolkata or . is Chennai – also saw the share of these expensive units increase. The Anarock report noted that end users were driving sales rather than investors.

“There is a clear reflection of the overall economic performance. While the typical buyers in this budget segment were not as affected by the pandemic as the rest, HNIs (high net worth individuals) are aware of the costs. Discounts by developers made luxury properties very attractive for these buyers and NRIs have also bought luxury homes in India because of the favorable exchange rate,” said Anuj Puricchairman of the Anarock group.

The report also said developers have ramped up new offerings in the luxury segment, launching more than 28,000 such units in the cities in the first half of 2022. In the whole of 2019, approximately 28,960 luxury homes were launched.

At the same time, the share of the affordable housing segment – ​​or houses priced above ₹40 lakh – saw its share of sales fall to 31% from 38% in 2019. “Hyderabad saw the maximum decline in the share of affordable housing, followed by Chennai, the report said.

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