Premium residential market witnesses price appreciation of up to 45% in 2023

NEW DELHI: On the back of strong demand for expensive housing amid a robust sentiment in the market, premium residential market in major cities is seeing significant price appreciation, led by Gurugram, followed by Noida in 2023, as per Savills India, a global property consulting firm.

Savills in a report said completed projects in most cities have seen higher appreciation in capital values as against under-construction projects and this preference could be influenced by factors such as reduced uncertainty, availability for use, and the ability to assess the actual quality and features of the property. As the residential market gains momentum and capital values see a surge in recent months, buyers are motivated to make purchasing decisions.

In most Indian cities, properties priced upwards of Rs 1.50 crore are considered as premium or luxury. In MMR, this segment starts at Rs 2.50-3 crore. Industry reports claim the share of this segment in housing sales across top cities has  tripled in last five years  from below 10% in 2018 to over 27% in 2023.

Mumbai saw an average 9% year-on-year (YOY) rise in capital values for completed properties and a 4% YOY rise for under-construction properties. New Delhi saw a rise of 18% YOY in average capital value of luxury floors. Arvind Nandan, Managing Director, Research & Consulting, Savills India said, “As we step into 2024, the outlook for the premium to luxury residential segment in key urban hubs like NCR and Mumbai remains exceptionally promising.”