Demand of Luxury Homes increased in India, Homes worth Rs 2,443 crore sold in just 4 cities, Read Data
Demand of Luxury Homes: A recent report reveals that the average time to purchase property in India dropped to 26 days in the first half of FY25 (H1 FY25), down from 33 days in FY 2021. This reduction is attributed to housing being a preferred investment choice, boosted by rising disposable incomes and strong economic growth.
Ultra-Luxury Homes Have the Fastest Conversion Time
Ultra-luxury homes, priced at Rs 3 crore and above, experienced the fastest conversion time, with buyers closing deals in just 15 days during H1 FY25. This is a significant improvement from 22 days in FY24, according to Anarock Group data.
Conversion Times for Different Price Ranges
For homes priced between Rs 50 lakh and Rs 1 crore, the conversion time was the longest, averaging 30 days. Properties priced between Rs 1 crore and Rs 3 crore had a conversion time of 27 days in H1 FY25.
Lead-to-Conversion Time
The lead-to-conversion time, which measures the period between the first inquiry and the actual booking, was at its lowest in FY 2019 and FY 2024, both at 25 days.
Factors Behind Faster Decisions
Anuj Puri, Chairman of Anarock Group, explained that buyers of ultra-luxury homes are financially prepared to make quicker decisions. High-end homes are in great demand, and desirable properties sell out quickly, which requires faster transactions.
Affordable Homes See a Slight Reduction in Conversion Time
Affordable homes experienced a slight reduction in conversion time, dropping from 27 days in FY 2024 to 26 days in H1 FY25, reflecting ongoing strong demand.
Overall Market Trends
The report indicates that buyers are now making quicker property purchases than in FY21, signaling sustained demand. The rise in new supply from reputable developers has also made buyers more confident and able to make decisions faster.
Sales of Ultra-Luxury Homes Soar in 2024
In the first eight months of 2024, 25 ultra-luxury homes, priced above Rs 40 crore, were sold across Mumbai, Hyderabad, Gurugram, and Bengaluru, totaling approximately Rs 2,443 crore in sales. Mumbai led the charge, with 21 units sold, worth Rs 2,200 crore—84% of the total sales in this segment across top cities. Hyderabad, Gurugram, and Bengaluru also saw significant sales of ultra-luxury properties, with some deals worth over Rs 80 crore.
Large Ticket-Sized Deals on the Rise
Out of the 25 deals closed, nine were large ticket-size deals worth over Rs 100 crore each, amounting to Rs 1,534 crore. This is compared to just 10 such deals in the entire year of 2023, with a total sales value of Rs 1,720 crore.
Apartment Sales Dominate Ultra-Luxury Market
Apartments remained the most popular choice for high-net-worth individuals (HNIs), with 20 out of 25 ultra-luxury deals involving apartments. The remaining five deals were for bungalows. These 20 high-rise apartment sales were worth approximately Rs 1,694 crore, while the five bungalows sold for Rs 748.5 crore.
Buyer Demographics
About 80% of the deals were made by businessmen, while 12% were made by senior professionals. The remaining 8% were purchased by Bollywood celebrities, as well as leading legal and medical professionals.
Mumbai Leads in Demand for Ultra-Luxury Homes
Mumbai continues to dominate demand for ultra-luxury homes, despite being the most expensive residential market in India. The financial capital attracts HNIs and ultra-HNIs who seek ultra-luxury properties for investment or personal use.
Rising Prices of Ultra-Luxury Homes
The average price of homes priced above Rs 40 crore increased by 2% over the last eight months. Meanwhile, homes priced above Rs 100 crore saw a 14% price jump during the same period.
Price Trends and Developer Response
Homes priced above Rs 40 crore saw their average price rise from Rs 1,00,208 per square foot in 2023 to Rs 1,02,458 per square foot in August 2024. Homes in the Rs 100 crore range saw an even sharper rise, with prices increasing from Rs 1,24,697 per square foot at the end of 2023 to Rs 1,41,904 per square foot in 2024. This surge in prices reflects the strong demand for luxury properties.
Leading Grade A developers have responded by increasing the supply of ultra-luxury homes to meet the growing demand, the data shows.
Outlook for the Rest of 2024
Anuj Puri, Chairman of Anarock Group, stated that with four months remaining in 2024 and the festive quarter from October to December underway, there is a likelihood of more large-ticket residential deals being closed before the end of the year.
