Luxury housing sales up 18% in top seven cities: Report

Business News Desk!! According to a report, the share of the luxury housing segment in the total sale of residential units has increased in the top cities of the country. According to realty consultancy Anarock Research, of the total 3.65 lakh units sold in the top seven cities in 2022, 18 per cent (about 65,680 units) were in the luxury category above Rs 1.5 crore. In contrast, of the total 2.61 lakh units sold in 2019, only 7 per cent (around 17,740 units) were in the luxury category. MMR, NCR and Hyderabad lead the sales of luxury homes in 2022 with a total sales of around 50,100 units. In 2019, they together saw the sale of just 14,050 luxury homes in the entire year. The data further revealed that in terms of total sales share, MMR’s luxury housing sales share is set to increase from 13 per cent at 80,870 units in 2019 to around 30 per cent at around 1.10 lakh units in 2022. In NCR, the share of sales increased to around 15 per cent. In Hyderabad, it increased to 16 per cent in 2022 (total 47,490 units sold), up 10 per cent from 16,590 units sold in 2019.

According to the Inspector General of Registration, Maharashtra, India’s costliest city- Mumbai- revenue collection from property registration reached a new high of Rs 1,102 crore in February 2023. This was a tremendous jump of 79 per cent as against the February 2022 collection when it stood at Rs 615 crore. Anuj Puri, chairman, Anarock Group, said: Interestingly, even though revenue collection increased significantly in Mumbai during this period, the total number of property registrations saw a year-on-year decline of 8 per cent – ​​from a total of 10,379 registrations in February 2022 Around 9,511 registrations took place in 2023. This clearly indicates that the sale of homes with big ticket prices (i.e. luxury homes) saw a significant spurt. If we dig deeper into the figures, February 2023 has seen the highest revenue collection in Mumbai in the last five years during the same month. Also, in the entire FY2023, we have seen February registering maximum revenue collection.

A major factor for higher sales of big-ticket price homes in Mumbai and other top cities could be the government’s recent move to cap capital gains of Rs 10 crore in the Union Budget 2023-24. This new step will be applicable from April 2023. Thus, to save tax on capital gains, HNIs (high net worth individuals) in top cities including Mumbai are rushing to close luxury housing deals before the financial year ends in March. Under this new move, if one sells the house/other property including equity and the profit exceeds Rs 10 crore, then the profit can be availed for investing in another property up to a maximum of Rs 10 crore. From April 2023 onwards, capital gains above Rs 10 crore will be taxed. Earlier, to save tax on their capital gains, HNIs/ultra-HNIs mostly reinvested in ultra-luxury properties. Thus, the new move could be a deterrent to luxury housing sales to an extent once the new provision comes into effect. However, to say whether it will have a big impact on this segment remains to be seen.



Leave a Comment