Prices of luxury homes in the top-7 cities in 2018 averaged out at about Rs 12,400 per sq ft and at this point in 2023, have increased to nearly Rs 15,350 per sq ft
The real estate sector is seeing significant growth with sales and new supply increasing manifold after the pandemic. The luxury housing segment has been especially witnessing a jump in demand and prices. According to the latest report by real estate consultant Anarock, luxury homes have recorded the highest average price appreciation of 24 per cent in the last five years across top-7 cities.
Affordable homes priced less than Rs 40 lakh notched up a more modest 15 per cent price appreciation in the same period. The average price in this category across the top-7 cities was Rs 3,750 per sq ft in 2018. Currently, it averages out at Rs 4,310 per sq ft.
“The coronavirus pandemic has been a boon for the previously lacklustre luxury homes segment, with sales and new supply increasing manifold since then. Prices were bound to catch up with the demand,” Anarock said in the report on Tuesday.
On analysing the average price trends in the top-7 cities across different budget segments, Anarock data revealed that luxury homes have recorded the highest average price appreciation of 24 per cent in the last five years.
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“Prices of luxury homes in the top-7 cities in 2018 averaged out at about Rs 12,400 per sq ft and at this point in 2023, have increased to nearly Rs 15,350 per sq ft,” the report said.
Among the top-7 cities, Hyderabad recorded the highest jump of 42 per cent in the average price of luxury homes in this period – from about Rs 7,450 per sq ft in 2018 to nearly Rs 10,580 per sq ft in the first half of 2023. Bengaluru and MMR recorded the second-highest average price hike in this budget segment at 27 per cent each.
In Bengaluru, the average price of luxury homes in 2018 stood at Rs 10,210 per sq ft — as on date, it has risen to Rs 12,970 per sq ft. In MMR, the average price in the Rs 1.5 crore category back in 2018 was Rs 23,119 per sq ft, while it is currently Rs 29,260 per sq ft.
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In the affordable housing segment, NCR saw the highest average price jump at 19 per cent from Rs 3,120 per sq ft in 2018 to Rs 3,700 per sq ft in H1 2023. Budget homes in Hyderabad saw the second-best price appreciation of 16 per cent in this period — from Rs 3,460 per sq ft in 2018 to Rs 4,000 per sq ft in H1 2023.
Anuj Puri, chairman of ANAROCK Group, said, “Robust sales ably supported by good supply pipeline have resulted in luxury homes witnessing the most significant price appreciation. Considering the relative price stagnation in this segment in earlier years, a 24 per cent increase over the last five years is notable. In the pre-pandemic period in 2019, sales in this segment were anything but stellar and this reflected in non-existent or negligible price growth.”
The affordable segment, which was on a high before COVID-19, saw compromised sales that also reflected in its average price growth.
“Mid and premium segment homes priced Rs 80 lakh to Rs 1.5 crore together saw the average price go up by about 18 per cent in this period across the top-7 cities — from Rs 6,050 per sq ft in 2018 to Rs 7,120 per sq ft in 2023,” said Puri.
Hyderabad is already a standout performer on other real estate charts, and the appetite for luxury housing here has been more than apparent. The fact that it notched up the highest price appreciation at 23 per cent in this budget category stands to reason, he added.
