The supply in the luxury housing market hit a record high in Q3 2023, with as many as 31,180 new units being launched in the top-7 cities in India. These cities include the Delhi-National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Pune, and Hyderabad.
Incidentally, these 31,180 units account for approximately 27 per cent of the total 116,220 units launched in the quarter. This is the highest quarterly luxury supply entering the market in the last five years. Back in Q3 2018, the supply share of luxury housing was just 9 per cent, real estate consultancy firm Anarock said in a report.
Meanwhile, the supply of affordable housing units (homes priced at or under Rs 40 lakh) has reduced further to 18 per cent of the total supply in Q3 2023. Of the total 116,220 units launched in the quarter, only 20,920 were in the affordable category. In the corresponding period in 2018, this segment had a supply share of 42 per cent.
But a closer analysis of the data reveals that the number of units is gradually increasing in successive years from 2019. But in terms of the percentage share of the total supply, it has been continuously shrinking in recent years, falling from 41 per cent of all units launched in Q3 2019 to just 18 per cent in Q3 2023.
Hyderabad saw the highest new luxury supply in Q3 2023, with the launch of approximately 14,340 units, followed by MMR with 7,830 units. In terms of overall luxury share, Hyderabad clocked in at 46 per cent and MMR at 25 per cent.
Delhi NCR witnessed new luxury supply of approximately 3,870 units in Q3 2023, against 930 units in the corresponding period in 2018. Pune saw 1,940 luxury units launched in Q3 2023, whereas Bengaluru saw approximately 1,710 new luxury units launched in Q3 2023.
Kolkata saw approx. 1,030 luxury units launched in Q3 2023.
Only Chennai saw a dip in launch of luxury units – 460 units in Q3 2023 against 580 units in the corresponding period in 2018.
Says Prashant Thakur, regional director and head – research, Anarock Group: “Developers have been bullish about the luxury home segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top-7 cities. Post pandemic, homebuyers have been seeking bigger homes, and apart from high-end amenities and good location, luxury housing is primarily defined by generous floor space.”