The Indian residential real estate market has experienced a notable shift, with high-value property transactions, particularly those valued at Rs 1 crore and above, seeing a significant increase. Recent data reveals that in the first quarter of 2024, these premium properties accounted for a substantial 37% share of all transactions, up from 16% in the corresponding period of 2019, before the pandemic.
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In its recent report, ‘Real Insight Residential – January-March 2024’, PropTiger.com, owned by REA India, highlights a surge in demand for premium properties, showcasing the resilience and adaptability of the real estate sector in response to changing market dynamics.
This trend signals promising opportunities for investors and stakeholders amidst evolving consumer preferences and economic conditions. It also reflects shifting buyer aspirations towards modern amenities and larger living spaces.
Premium Property Demand Rises
The data indicates a significant trend in buyer behaviour, with a shift towards high-value acquisitions. There has been a consistent increase in the sale of properties in higher price brackets, including those valued between Rs 75 lakh-1 crore and above Rs 1 crore. This trend suggests a growing inclination towards upscale real estate offerings, potentially driven by factors such as increased disposable income and changing lifestyle preferences.
Conversely, there has been a decline in the market share of properties in lower price brackets, indicating subdued demand for more affordable housing options. This decline may be influenced by various economic factors, including inflationary pressures and shifting consumer priorities.
Vikas Wadhawan, group CFO, PropTiger.com and Housing.com, said, “The escalating demand for premium properties in Q1 2024 underscores the resilience of India’s real estate market. With the rising costs of land, inputs, and construction, the once-luxurious threshold of Rs 1 crore in major cities is becoming increasingly common.
Aspirations are evolving, with homebuyers seeking residences equipped with modern amenities and spacious layouts. This shift towards larger, amenity-rich homes contributes to the uptrend in property prices. Despite fluctuations in various price segments, the overarching trend signals promising opportunities for investors. It’s evident that the market is moving towards a positive trajectory, driven by the evolving preferences of discerning buyers.”
According to the report’s findings, Q1 2024 marked a discernible shift towards high-end properties among homebuyers. Notably, the share of properties priced at Rs 1 crore and above in sales surged to 37%, a significant increase from the pre-pandemic levels of 2019, more than doubling in magnitude.
During this period, there was substantial growth (50-55%) in demand observed within the Rs 1-5 crore price bracket, closely followed by the Rs 5-10 crore range, particularly evident in cities like Mumbai, Gurugram, and Bengaluru. This transition signifies a departure from purely budget-driven decisions towards properties that better resonate with buyers’ lifestyle preferences.
Insights gleaned from the report underscore that this upward trend is not confined to sales figures alone.
The Gross Transaction Value (GTV) experienced a notable surge, escalating by 91% to reach Rs 1.11 lakh crore in Q1 2024 when compared to the same period in 2019. Projections indicate that this trend is poised to persist, fueled by sustained demand and the ever-evolving lifestyle preferences of buyers.
PropTiger.com’s report highlights strong momentum in India’s housing market, with residential sales soaring by an impressive 30% in the first quarter of 2024 across the top 8 cities.
The report highlights a remarkable 41% year-on-year increase in residential sales, setting a record high for the first quarter with a total of 120,640 units sold nationwide.
Notably, Mumbai and Pune emerged as frontrunners in this surge, collectively contributing 54% of the overall sales during this period.
Note: Housing markets covered in the report include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), MMR (Mumbai, Navi Mumbai, and Thane), and Pune.
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