covid: Demand for luxury homes surges post Covid. Here’s what data from Anarock says

Capacity to pay more, demand for bigger homes due to Covid has doubled the share of apartment priced above Rs 1.5 crore in the total housing sale in the first half of 2022, according to property consultant Anarock.

Data suggest that of the 1.84 lakh units sold in too seven cities in H1 2022, about 14% (approximately 25,700 units) were in luxury homes. Of 2.61 lakh units sold in the whole of 2019, just 7% (approximately 17,740 units) were in the luxury category.

Encouraged by this healthy demand for luxury offerings, developers have stepped up new supply in the luxury segment, launching over 28,000 units priced Rs 1.5 crore across the top 7 cities in just first half of 2022. Approximately 28,960 luxury homes were launched in the entire 2019.

“These sales figures are even more remarkable if we consider that it is mainly end-users who are driving luxury housing sales across these cities today. There is a clear takeaway on overall economic performance,” said Anuj Puri, Chairman, Anarock group.

MMR and NCR have led luxury homes sales with H1 2022 seeing approximately 17,830 units sold in these two cities alone. In 2019, they accounted for a mere 11,890 luxury homes sold in the entire year.

In terms of overall sales share, MMR’s luxury housing sales share increased from 13% in 2019 to 25% in H1 2022. In NCR, the sales share rose to 12% in H1 2022, from 4% in 2019.

“Even though the typical buyers in this budget segment were not as impacted by the pandemic as the rest, HNIs are conscious of cost. Discounts by developers made luxury properties very attractive for these buyers and NRIs have also been snapping up luxury homes in India because of the favourable exchange rate,” Puri said.

The affordable housing segment (units priced

Post-pandemic, affordable housing was significantly impacted because its target audience took the biggest economic hit. In terms of cities, Hyderabad saw the maximum dip in affordable housing sales share – from 23% in 2019 to 6% in H1 2022, followed by Chennai – from 52% in 2019 to 36% in H1 2022.

Hyderabad has approx. 11,730 luxury homes available for sale. In the first half of this year, approximately 2,420 units were sold in this budget category. Bengaluru has approx. 9,860 luxury units available for sale. In H1 2022, approximately 2,430 luxury homes were sold here.