With Covid-19 pandemic turning out to be a blessing in disguise for the luxury residential realty, the rising demand for more spacious and amenities-rich high-end homes has helped luxury homes segment maintain its strong price momentum.
Post -Covid period has emerged as a boon for the previously lacklustre luxury homes segment which has seen prices going up with sales and new supply increasing manifold since then. On analysing the average price trends in the top 7 cities across different budget segments, Anarock Research data reveals that luxury homes have recorded the highest average price appreciation of 24% in the last five years.
Prices of luxury homes in the top 7 cities in 2018 averaged out at approx. INR 12,400 per sq. ft. and in H1 2023, have increased to approx. INR 15,350 per sq. ft.Among the top 7 cities, Hyderabad recorded the highest jump of 42% in the average price of luxury homes in this period – from approx. INR 7,450/sq. ft. in 2018 to approx. INR 10,580/sq. ft in the first half of 2023. Bengaluru and MMR recorded the second-highest average price hike in this segment at 27% each.In Bengaluru, the average price of luxury homes in 2018 stood at INR 10,210/sq. ft. – as on date, it has risen to INR 12,970/sq. ft.In MMR, the average . price in the INR 1.5 Cr price category back in 2018 was INR 23,119/sq. ft. while currently it is at INR 29,260/sq. ft.
Affordable homes priced below INR 40 lakh notched up a more modest 15% price appreciation in the same period. The average price in this category across the top 7 cities was INR 3,750/sq. ft. in 2018. Currently, it averages out at INR 4,310/sq. ft.At 19%, NCR saw the highest average price jump in this category – from INR 3,120/sq. ft. in 2018 to INR 3,700 per sq. ft. in H1 2023. Budget homes in Hyderabad saw the second-best price appreciation of 16% in this period – from INR 3,460/sq. ft. in 2018 to INR 4,000/sq. ft. in H1 2023.
Source: ANAROCK Research
According to Anuj Puri, Chairman, Anarock ,extremely 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% 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.”
Contrastingly, the affordable segment – which was on a high before Covid-19 – saw compromised sales that were also reflected in its average price growth.Mid and premium segment homes priced INR 80 lakh to 1.5 Cr together saw the average price go up by approx. 18% in this period across the top 7 cities – from INR 6,050 per sq. ft. in 2018 to INR 7,120 per sq. ft. in 2023. “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% in this budget category stands to reason.
Source: ANAROCK Research
Current City-wise Price Trends Across Segments