The Indian luxury assets have grown at a relatively slow pace of CAGR 9.4% in the last three years. While the primary contribution to the growth comes from the luxury cars segment; interestingly, luxury real estate is currently stagnant owing to weak investor sentiment and is expected to revive only in the second half of 2014, a report published in collaboration between Confederation of Indian Industry (CII) and research organization IMRB International said on Monday.
The report suggests that even if the luxury segment bore the brunt of the ongoing economic downturn, but is now witnessing signs of revival. The impact of the economic slowdown in 2013 has impacted the luxury market to a certain extent as well but the market is expected to revive by 2014 and continue on its growth trajectory, is also expected to grow at nearly 17% in 2014. Reaffirming the luxury’s sectors resilience, the report points to 2007, when the luxury market stood at $3.66 billion. This segment suffered severely in 2008, but the Indian market recovered relatively faster compared to other markets. Since then, it has registered a healthy CAGR (compounded annual growth rate) of 15.7% till 2012 with the estimated size at $7.58 billion.
Indicators suggest, the India luxury story is holding back. IMRB estimates peg the luxury industry size at $7.58 billion in 2012, with a CAGR growth of nearly 15% in the last three years. A YOY growth of 20% was registered in 2010 which dipped to 16% in 2011 owing to an overall dip in the consumer and market sentiment.