Luxury Homes Rise 24 Per Cent In Average Price In Top 7 Cities Since 2018: Report

Prices of luxury homes in the top 7 cities in 2018 averaged out at Rs 12,400 per sq. ft. and at this point in 2023, have increased to Rs 15,350 per sq. ft

The Covid-19 pandemic has been an indubitable 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. 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 per cent in the past five years.

Prices of luxury homes in the top 7 cities in 2018 averaged out at Rs 12,400 per sq. ft. and at this point in 2023, have increased to Rs 15,350 per sq. ft.

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 Rs 7,450/sq. ft. in 2018 to Rs 10,580/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/sq. ft, as on date, it has risen to Rs 12,970/sq. ft. In MMR, the average price in the Rs 1.5 crore category back in 2018 was Rs 23,119/sq. ft. while currently it is Rs 29,260/sq. ft.

Affordable homes priced less than Rs 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 Rs 3,750/sq. ft. in 2018. Currently, it averages out at Rs 4,310/sq. ft.

At 19 per cent, NCR saw the highest average price jump in this category, from Rs 3,120/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/sq. ft. in 2018 to Rs 4,000/sq. ft. in H1 2023.

Anuj Puri, chairman, Anarock Group, says, "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 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."