In an exciting revelation from top developers, the demand for premium residential apartments in India, particularly those priced over INR 5 crores, is set to surge in the next couple of years.

In the first half of 2023, the real estate industry has witnessed a steady growth in the premium housing market. Homes priced above INR 1 crore accounted for nearly one-third of the market share, a significant increase from the first half of 2022 when it was around 25%. Notably, the first half of 2023 also marked the second-highest sales volume in the past 9.5 years for half-yearly residential sales.

During this period, the residential sector recorded the sale of 156,640 property units, with only a marginal 1% decrease compared to the YoY figures between January and June 2023. However, it marked a 1.7% increase compared to the second half of 2022.

Developers have observed a notable surge in demand for mid-range homes during the first half of 2023, surpassing the demand in the affordable segment. The six months of 2023 saw a total of 40,798 units sold, underscoring the nationwide quest for quality homes.

Industry experts express confidence in the property price appreciation trends, expecting the high demand for premium homes to persist over the next few years. Several markets in the country have reported impressive real estate sales data, with premium homes valued over INR 5 crore experiencing particularly high demand. Consequently, real estate players anticipate that the demand for premium market homes will remain robust.

Simultaneously, residential property launches from reputable developers have gained momentum. They are optimistic about property buyers having a higher disposable income and being willing to invest more in the mid and premium housing segments. This demand for housing options aims to provide buyers with the opportunity to customize their homes according to their desired way of living.

The driving force behind this surge in premium residential home sales is the impact of economic growth. Additionally, there is a growing aspiration among homeowners to acquire their dream properties, facilitated by rising incomes. Affluent individuals and professionals seek high-quality premium homes, with this trend particularly prominent in the Mumbai real estate market, signaling a healthy outlook for the industry.