Indian real estate has witnessed a substantial transformation in Q1 2024, marked by a notable 40% year-on-year surge in luxury housing sales.
In stark contrast, the affordable housing segment experienced a 20% decline in sales, reflecting shifting consumer preferences and market dynamics. Additionally, there has been a significant increase in the sale of residential units priced above Rs 1.5 crore.
This surge in luxury housing market can be attributed to several factors, including increased disposable incomes and a growing preference for high-end homes as well as emergence of luxury housing as an investment instrument. In NCR Noida, Greater Noida, Ghaziabad, and Gurgaon have emerged as prime locations for luxury housing, offering a blend of modern amenities, strategic locations, and premium lifestyle choices.
Manoj Gaur, President, CREDAI NCR, states, “To begin, the growth of luxury residences is due to an increase in demand from affluent buyers looking for high-end properties with all the modern amenities. Moreover, today, they are content not just with a luxury home but also want to live in iconic addresses that inspire awe and adoration and possess a brand value. In the top seven cities, the share of luxury properties is on the rise.
“The number of high net-worth individuals (HNIs) is increasing by huge numbers. They have also catalysed the growth of luxury residences.
Nayan Raheja of Raheja Developers, points out that the popularity of the luxury housing market is also driven by the changing lifestyle aspirations of buyers who seek exclusivity and superior quality of life.
“The desire for larger living spaces, premium amenities, and strategic locations is more pronounced than ever. This shift in consumer preferences, coupled with robust economic indicators and stable interest rates, has created a fertile environment for the luxury real estate segment to thrive.
“Additionally, the growing influx of foreign investments and the increasing trend of owning multiple high-end properties among HNIs further speak for the inherent strength and resilience of this market,” says Raheja.
Gaurav Gupta, General Secretary, CREDAI-NCR, believes that this trend is particularly evident in the Noida, Greater Noida, Ghaziabad, and Gurgaon regions, where buyers are prioritising spacious, well-located, and amenity-rich residences.
“Further, the limited availability of land banks in well-established neighbourhoods has also resulted in the growing popularity of luxury apartments,” he says.
Rajjath Goel, Managing Director, MRG Group, states, “The country’s economic growth, the general all-around prosperity and the preference for larger homes have been some of the key factors. Furthermore, there is no demand-supply imbalance, and leading developers have launched a number of projects to meet these demands. Moreover, investments from non-resident Indians (NRIs) have further fuelled this growth, making luxury homes not just symbols of prestige but also attractive investment instruments.”
Conversely, the affordable housing segment has faced a 20% decline in sales. Economic uncertainties and evolving buyer preferences have contributed to this downturn. Potential buyers are increasingly seeking better investment opportunities and enhanced living experiences, which has led to a shift away from the affordable housing segment.
Luxury Housing Sales
Approximately 4,000 luxury units sold in Q1 2023 compared to 1,600 units in Q1 2022. In the first quarter of 2024, the Indian real estate market saw significant activity in the luxury residential sector. A total of 74,486 residential units were sold, marking a 20% increase compared to the same period in 2023.
| Quarter | Year | Total Units Sold | Year-on-Year Growth | Percentage of Total Sales | Key Cities |
| Q1 | 2022 | 1,600 | – | – | – |
| Q1 | 2023 | 4,000 | 150% | N/A | N/A |
| Q1 | 2024 | 8,200 | 20% | 11% | Bengaluru, Mumbai, Delhi NCR |
Affordable Housing Sales
In the first quarter of 2024, the demand for affordable housing in India saw a notable decline. According to reports, the affordable housing segment, which includes homes priced below ₹50 lakh, accounted for only 15% of total residential sales.
This is a significant drop from 18% in Q1 2023 and 27% in Q1 2022. In Q1 2023, the affordable housing segment also experienced a downturn, with only 20% of the total 2.29 lakh units sold being affordable houses priced under ₹40 lakh, a decrease from 30% in the corresponding period of the previous year.
| Quarter | Year | Total Units Sold | Percentage of Total Sales | Price Range |
| Q1 | 2022 | 61,830 (approx) | 27% | Below ₹40 lakh |
| Q1 | 2023 | 45,800 (approx) | 18% | Below ₹40 lakh |
| Q1 | 2024 | 11,172 (approx) | 15% | Below ₹50 lakh |
Delhi NCR Real Estate Market (Overall Housing Sale)
In terms of numbers, the overall housing sales in Delhi NCR for Q1 2024 amounted to 10,060 units, a substantial increase from 3,800 units sold in Q1 2023. This surge reflects a 164% year-on-year growth, underscoring the strong demand in this region.
| Quarter | Year | Total Housing Units Sold | Year-on-Year Growth | Affordable Housing Units Sold | Percentage of Total Sales (Affordable Housing) |
| Q1 | 2023 | 3,800 | N/A | N/A | N/A |
| Q1 | 2024 | 10,060 | 164% | N/A | 15% |
A comparative analysis of the Delhi NCR real estate markets reveals significant changes in consumer behaviour and market performance. In Q1 2023, the luxury housing segment was still recovering from the pandemic-induced slowdown, with a modest growth rate. However, the current year’s 40% increase indicates a robust recovery and heightened interest in premium properties.
Similarly, the affordable housing market’s 20% decline in Q1 2024 contrasts sharply with the more stable performance observed last year. This shift underscores the increasing divergence in market segments, as buyers with higher purchasing power dominate the market.