APPD Market Report Article
ChennaiSeptember 4, 2023
Dr Samantak Das, Head of Research, India
High-end sales healthy but down 24% q-o-q
- The demand in the High-end Apartment market was led by the preference for spacious homes, which became evident as demand for 3 BHK apartments surpassed that of smaller sizes.
- Sales continue to outstrip new launches, albeit down by 24% on a q-o-q basis.
Unusual decline in the inventory
- Inventory remains low and supply in the quarter was very limited, even though demand remained robust for this segment.
- The tight land availability in the central areas pushed new launches to adjacent submarkets. However, the only new launch in 2Q23 was recorded in the Central submarket and, hence, supply was limited.
Capital values up marginally; rents stay steady
- Rents remained stable in the quarter with demand for high-end homes from tenants steady.
- The combination of rising construction costs and limited availability of properties has caused mild upward pressure on capital values. Prices were up marginally in the Off-Central submarket on a q-o-q basis.
Outlook: Buoyant buyer sentiment drives high-end housing demand
- With good deals on offer, the buoyant home ownership sentiment and purchasing power among the young population, high-net-worth individuals and businessmen are keeping the high-end housing demand on strong footing.
- Homebuyers in this category flock to premium, gated communities, drawn by enhanced safety, lifestyle amenities and connected community living.