Luxury Real Estate Market in India 2024

Fuelled by rising affluence and rapid urbanisation, India’s luxury real estate market is booming. Here is an in-depth analysis catering to evolving lifestyle aspirations; covering key Indian cities such as Mumbai, Delhi, Bangalore, and emerging hotspots like Goa & Kolkata.

The luxury real estate market in India is experiencing unprecedented growth, reflecting the evolving aspirations of affluent homebuyers. According to Mordor Intelligence, the market is estimated at USD 38.02 billion in 2024 and will reach a remarkable USD 101.92 billion by 2029 – reflecting a compound annual growth rate (CAGR) of 21.81%.

This surge is further highlighted by a Knight Frank report that reveals a notable shift in buyer preferences toward premium properties. In the first half of 2024, homes priced at ₹1 cr (₹10 million) and above constituted 41% of total sales, up from 30% in the same period in 2023.

This trend underscores the growing demand for luxurious living spaces, making luxury real estate a dynamic and lucrative segment of India’s real estate market. In this blog, we will explore the factors fuelling luxury real estate India – key markets, trends, challenges, and the future of luxury real estate in India.

Factors Driving the Growth of Luxury Real Estate in India

The growth of luxury real estate in India is fuelled by increasing wealth among HNIs and UHNIs, changing lifestyle preferences, NRI investments, and significant urbanisation & infrastructure development across the country.

• Rising Affluence and Wealth: The luxury real estate market in India is witnessing unprecedented growth, driven by the rising affluence among High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs). The proportion of HNI and UHNI households in India is expected to rise from the current 3% to 9% by 2034, driving substantial demand for luxury housing.
• Changing Lifestyle Preferences: There is a noticeable shift in lifestyle preferences, with more buyers gravitating towards luxury living, branded residences, and second homes. These trends are significantly contributing to the expansion of the luxury real estate India market.
• Globalisation and NRI Investment: Globalisation has also played a crucial role, leading to increased investments from Non-resident Indians (NRIs), further boosting the demand for luxury properties. A recent regulatory change by SEBI allows 100% aggregate in GIFT City Gujarat. This is a great move enabling NRIs to invest in diverse range of opportunities.
• Urbanisation and Infrastructure Development: Smart cities and metro expansions are enhancing the appeal and accessibility of luxury real estate in India.

Key Markets and Hotspots for Luxury Real Estate

Indian luxury real estate market has been seeing rapid growth in metros and large cities such as Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Kolkata, and Goa. Read on to explore the distinctive developments and investment potential of these real estate hotspots.

1. Mumbai

   India’s financial capital stands as a leading destination for luxury real estate. In the first half of 2024, the city’s market reached its highest sales volume since H1 2012, with 47,259 units sold – an year-on-year increase of 16%. This growth was driven by rising incomes, favourable economic climate, and preference for larger, well-appointed homes – reaffirming Mumbai’s top position in the luxury real estate India market.

   Key neighbourhoods such as South Mumbai, Bandra, and Worli remain central to this growth, hosting high-profile developments with world-class amenities. The completion of major infrastructure projects – such as the Atal Setu bridge and new metro lines – is expected to boost demand in surrounding areas. With rising affluence and evolving consumer preferences, Mumbai’s luxury real estate market is poised for continued growth, solidifying its status as a prime real estate destination in India.

2. Delhi NCR (Gurgaon and Noida)

   As an integral part of National Capital Region (NCR), Delhi stands as a pivotal market in the luxury real estate India landscape. The first half of 2024 witnessed significant activity in this region, with 30,580 residential units launched. However, despite healthy sales over the past two years, the sales volume moderated to 28,998 units in H1 2024.

   This shift reflects the successive growth in average residential prices over the last 2.5 years, making many micro-markets and previously accessible locations more expensive due to limited ready-to-move-in inventory and ongoing infrastructure upgrades. Gurugram, a key area in NCR, dominated the market with 59% of the total half-yearly launches and accounted for 51% of the total units sold. The inauguration of the Haryana stretch of Dwarka Expressway in March 2024 has further bolstered homebuyer confidence in this region.

   Gurugram’s high-end projects – particularly in Sectors 80, 106, 109, 56, 79, 85, 90, 113 – continue to attract substantial interest from homebuyers seeking luxury real estate India offerings. SOBHA Altus’ Ultra Luxury Abodes is located in Secor 106 standing as a new downtown in Gurugram. These developments underscore Delhi NCR’s position as a prime hotspot in the luxury real estate market, with infrastructure enhancements and contemporary amenities driving demand in this affluent segment.

3. Bangalore

   A major player in the luxury real estate market in India, Bangalore reached residential sales of 27,404 units in H1 2024, a 4% increase from H1 2023. This growth highlights the city’s strong demand, fuelled by buyer confidence and robust appetite for homeownership. South Bangalore led this demand with 35% of sales, driven by proximity to tech parks in Koramangala and Electronic City.

   East Bangalore followed with 33%, supported by IT hubs like Whitefield, ITPL, & ORR, and enhanced by the Purple Line metro extension. North Bangalore witnessed excellent growth, with a 300 basis points increase due to infrastructure developments such as the new airport terminal and the upcoming Blue Line metro. Luxury real estate in areas like Sarjapur Road, Devanahalli, Bellary Road and Panathur Road continues to attract HNIs, reinforcing Bangalore’s status as a top luxury destination.

   SOBHA Crystal Meadows is Bangalore’s first ever Millionaires’ Row crafted with Victorian Architecture is situated at Sarjapur Road and SOBHA Neopolis at Panathur Road is built in timeless Grecian Style with luxury abodes and modern amenities suiting all age groups.

4. Hyderabad

   Emerging as a key player in the luxury real estate sector in India, Hyderabad achieved a milestone of 18,573 units sold in H1 2024. The city has experienced a 117% increase in sales of units priced above ₹1 crore, compared to the previous year. Developers have responded to this surge with a significant scale-up in activity, launching 0.18 million units in H1 2024 – the highest in a decade.

   The focus has shifted towards luxury and experiential living, with the share of high-end units rising from 36% to 47% year-on-year. Prime neighbourhoods such as Banjara Hills, Jubilee Hills, and Gachibowli continue to attract affluent buyers seeking luxurious living spaces and upgraded lifestyles. Hyderabad’s strategic developments and market responsiveness underscore its growing prominence as a top destination for luxury real estate in India.

5. Chennai

   The city is emerging as a key player in the luxury real estate market in India, with a 12% year-on-year increase in residential sales, reaching 7975 units in H1 2024. The luxury segment is shifting, with higher-value properties gaining traction. Homes priced above ₹1 crore now account for 28% of total sales, up from 21% last year.

   This segment has seen a noticeable increase in sales volume, driven by demand for spacious, modern residences. Key neighbourhoods such as Boat Club, Poes Garden, and Adyar are popular among affluent buyers, offering exclusivity and proximity to commercial hubs. Chennai’s growing appeal and evolving market dynamics highlight its rise as a significant luxury real estate destination.

6. Kolkata

   Kolkata’s residential market has experienced significant growth, making it a key player in the luxury real estate landscape of India. In H1 2024, the city saw sale of 9130 residential units, marking a robust 25% year-on-year growth in sales volume. This surge in demand is largely attributed to the continuation of stamp duty rebates that have incentivised homebuyers, coupled with a wave of new launches across various price segments.

   Developers in Kolkata have responded to this demand by introducing fresh inventory, particularly in the mid-segment and premium categories, aligning with the evolving preferences of the city’s affluent buyers. Notably, while both sales and launches have seen positive annual growth, the growth in new launches has outpaced sales, reflecting a trend observed since the 2^nd half of 2023.

   This momentum positions Kolkata as a growing hotspot in the luxury real estate market in India, where a unique blend of cultural heritage and modern amenities continues to attract discerning buyers seeking premium properties.

7. Goa

   With its stunning coastline and vibrant lifestyle, Goa has become a prime destination for luxury real estate in India. Popular among second-home buyers, the state offers attractive rental yields ranging from 5% to 8%. Demand for gated villas sized 2000-4000 sq ft and plots sized 190-400 sq m, highlights the appeal of spacious living – especially along the coast.

   However, escalating land prices have reduced standard plot sizes from 500 to 250 square metres in the past five years. Despite this, the allure of premium views and exclusive locations remains strong, though such properties are increasingly scarce. Goa’s luxury real estate market is now focused more on investment opportunities rather than end-use, reflecting a significant trend in the sector.

   Source: Knight Frank – Indian Real Estate – Residential and Office Market – Jan-Jun 2024

7 Types of Luxury Properties in India

In the vibrant landscape of the luxury real estate market in India, discerning buyers seek not just a home, but a lifestyle statement. Let us get a glimpse of the diverse array of luxury properties that define this exclusive segment:

• Situated in prime metropolitan areas, ultra-luxury apartments in high-rises offer opulent interiors, breathtaking views, highly sought-after locales, and exclusive amenities – embodying sophistication and modernity
• Luxury villas and independent bungalows provide privacy and grandeur with expansive spaces, private gardens, and personalised features in serene, verdant settings
• Row houses offer the perfect balance between privacy of villa living and community feel & modern amenities of gated communities
• By partnering with renowned hospitality brands, branded residences combine luxury living with top-tier service standards, and offer a seamless blend of residential comfort and world-class experiences
• Luxury farmhouses and holiday homes in scenic locations provide an escape from the urban bustle, with natural beauty, high-end amenities, and avenues for relaxation & entertainment
• Gated communities offer a blend of security, exclusivity, and planned layouts – with landscaped gardens and recreational facilities enhancing urban living with tranquillity.
• Smart homes and tech-enabled properties integrate advanced technology for enhanced convenience, security, and sustainability – catering to tech-savvy buyers.

Current Trends in the Luxury Real Estate Market 2024

The luxury real estate market in India is evolving rapidly, reflecting both global influences and local preferences. Here’s an overview of the current trends shaping this exclusive sector:

• The luxury real estate market in India is increasingly embracing eco-friendly designs and sustainable practices. Homebuyers are attracted to properties with energy-efficient materials, water conservation systems, and green certifications – reflecting a growing commitment to environmental responsibility.
• Technology is transforming luxury living, with smart homes featuring IoT, home automation, and advanced security systems. These innovations cater to tech-savvy buyers and investors by enhancing convenience, efficiency, and security.
• Modern luxury properties emphasise wellness and lifestyle, incorporating amenities such as spas, saunas, gyms, salons, sports facilities, and wellness centres. These features cater to a holistic living experience, blending health and well-being with luxury.
• There is a trend towards highly customised and personalised homes, reflecting individual tastes and preferences. Buyers seek unique, tailormade properties with exclusive features, moving away from standard luxury offerings.

Challenges and Barriers in the Luxury Real Estate Market

The luxury real estate market in India faces challenges including market saturation and intense competition, leading to a need for differentiation and high standards of quality – to maintain profitability.

Economic factors such as slowdowns and political instability also pose risks, as global events and domestic uncertainties can reduce consumer confidence and spending power. Developers and investors must navigate these issues carefully for sustained growth and profitability in this segment.

Investment Potential and Future Outlook

The luxury real estate market in India holds substantial investment potential, with historical trends showing strong capital appreciation, particularly in metros such as Mumbai, Delhi NCR, and Bangalore. This trend is expected to continue – driven by rising affluence, urbanisation, and infrastructure development.

Emerging trends include increased demand in newly developing areas of these metros and prime areas of Tier-2 cities, improved connectivity & world-class infrastructure in such areas, and the rise of luxury gated communities & smart homes. These developments are set to attract affluent, discerning buyers and reshape the market – enhancing its appeal and investment prospects.

Case Studies of Iconic Luxury Real Estate Projects

The luxury real estate market in India is distinguished by many iconic projects that have set benchmarks in design, exclusivity, and grandeur. Let us take an in-depth look at some of these landmark developments:

• Antilia, Mumbai

  Located in one of the most sought-after locales of South Mumbai, this 27-storey skyscraper owned by Mukesh Ambani epitomises opulence and architectural excellence. As India’s most expensive residential property, it features a private theatre, multiple swimming pools, and a vast garden – symbolising India’s rising luxury real estate market.

• DLF Camellias, Gurgaon

  These ultra-modern apartments in Gurgaon offer expansive spaces and panoramic city views. Its high-end amenities and design have set a new benchmark for luxury living in the region, appealing to HNIs seeking exclusivity and convenience.

• SOBHA Lifestyle, Bangalore

  Sobha Lifestyle represents high-end luxury in Bangalore with its premium features, including landscaped gardens and a world-class clubhouse. Catering to affluent professionals and families, it reflects the increasing demand for sophisticated residences in the city.

• SOBHA International City, Gurgaon

  With its lush green surroundings and modern amenities, this exclusive gated community provides an ideal blend of luxury and tranquillity. SOBHA International City Gurgaon has attracted high-profile homebuyers seeking world-class living amidst verdant settings.

The Role of Luxury Real Estate in Social Status and Lifestyle

In India’s luxury real estate market, properties serve as potent symbols of social status and lifestyle. From grand mansions in serene areas to penthouses in iconic towers, these homes signify achievement and opulence – elevating their owners’ social standing. Luxury real estate impacts social networks and lifestyle choices by offering amenities like exclusive clubhouses, advanced fitness centres, and bespoke concierge services – that enhance daily living and provide networking opportunities.

Additionally, many high-end properties blend modern luxury with traditional Indian architecture and art, allowing homeowners to showcase their appreciation for culture and heritage in their living spaces. This fusion of opulence and cultural elements enriches the overall living experience, reflecting social prominence and sophisticated lifestyle.

Conclusion

The luxury real estate market in India is experiencing robust growth, driven by increased affluence, shifting lifestyle preferences, and strong NRI investments. Metros and large cities such as Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Kolkata, and Goa are key real estate hotspots – each offering distinct opportunities and growth potential.

The evolving trends in luxury real estate India – including eco-friendly designs and smart home technologies – are reshaping the market landscape. While challenges such as regulatory complexities and market saturation persist, the sector’s future remains optimistic. With India’s expanding economic horizon, luxury real estate India continues to symbolise the nation’s prosperity and desire for high-end living.

FAQs

1. What defines a property as luxury in the Indian real estate market?

Luxury properties in the Indian real estate market are defined by their highly sought-after location, high-end design & finishes, extensive amenities, and exclusive features that cater to affluent buyers.

2. Which cities in India are considered the top markets for luxury real estate?

Cities in India considered as the top markets for luxury real estate are Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Kolkata, and Goa – due to their economic growth, exclusive offerings, and HNI populations.

3. How has the demand for luxury real estate evolved in recent years?

The demand for luxury real estate in India has surged in recent years, driven by rising incomes, increased urbanisation, and growing appetite for high-end living spaces.

4. What factors contribute to the high demand for luxury properties in India?

Factors that contribute to high demand for luxury properties in India are growing affluent class, NRI investments, desire for highly sought-after addresses, and superior lifestyle amenities.

5. What are the key features that buyers typically look for in luxury homes?

The key features that buyers typically look for in luxury homes are expansive spaces, high-quality materials, state-of-the-art amenities, and exceptional views or locations.

6. Are eco-friendly and sustainable homes gaining popularity in the luxury segment?

Yes, eco-friendly and sustainable homes are gaining popularity in the luxury segment, reflecting a growing emphasis on environmental responsibility and long-term value.

7. What amenities are typically offered in luxury real estate developments in India?

Amenities typically offered in luxury real estate developments in India are clubhouses, swimming pools, gyms, sports facilities, landscaped gardens, recreational spaces, and more – enhancing the overall lifestyle experience.

8. How do smart homes and technology integration impact the luxury real estate market?

Smart homes and technology integration positively impact the luxury real estate market, by enhancing convenience, security, and modernity.

9. What should buyers consider when purchasing luxury real estate in India?

When purchasing luxury real estate in India, buyers should consider location, home configuration, potential of property value appreciation, developer reputation, and the quality of amenities.

10. What is the future outlook for the luxury real estate market in India?

The future outlook for luxury real estate market in India is positive, with continued growth driven by economic expansion, increasing disposable incomes, and evolving lifestyle preferences.