India’s luxury real estate sector has witnessed a remarkable surge, with sales reaching an 11-year high of 173,000 units in the first half of 2024, according to a recent report by Knight Frank.
This robust performance in the housing market is significantly bolstered by the luxury segment, which alone contributed approximately 41% to the overall growth in real estate sales during this period. Several factors are driving this unprecedented demand for premium housing. Foremost among these is the growing purchasing power of millennials. Data from CoreLogic reveals that millennials have been responsible for 54% of recent home purchases, underscoring their increasing influence in the property market.
Urbanisation has further fuelled the demand for luxury homes in key metropolitan areas such as Delhi-NCR, Mumbai, Hyderabad, and Pune. In Delhi-NCR alone, luxury home sales have surged by 13.8% compared to the previous year, with around 3,300 units sold in the first half of 2024. The luxury housing market’s expansion is also attributed to high-net-worth individuals (HNWIs) seeking both an elevated lifestyle and a sound investment opportunity. “The Indian luxury homes market is experiencing unparalleled growth. This trend is driven by enhanced lifestyle aspirations and a preference for iconic addresses developed by reputable builders.
As incomes have increased, so have the expectations,” remarked a CREDAI National official and Chairman & Managing Director of Gaurs Group. Data from Cushman and Wakefield highlights that 61% of new residential projects launched in Q1 2024 were in the luxury segment. This shift towards high-end housing is coupled with India’s economic growth and infrastructure development, such as the construction of Jewar Airport, which enhances the appeal of luxury properties.
“The demand for luxury homes is propelled by a combination of rising incomes, urbanisation, and infrastructural advancements. High-net-worth individuals are now looking for spacious homes with world-class amenities and aspirational values,” noted an official from Migsun Group. The growing interest in luxury real estate underscores an exciting phase for both buyers and investors in India’s property market.
