Clean Air and Open Land Drive Luxury Housing Demand in India
A significant behavioral shift triggered by the pandemic is reshaping India’s luxury housing market. Wealthy home buyers, once focused on occasional holiday retreats, are now acquiring villas and plotted developments outside city limits.
With deteriorating air quality in metros pushing clean air and low-density living to the top of decision-making priorities, leisure destinations including Goa, Alibaug, Coonoor, and Kasauli are witnessing rising interest.
“The shift is real and measurable. Second homes are no longer weekend indulgences. Buyers now spend weeks, even months living and working from these homes. Hybrid work has made this a feasible lifestyle rather than a luxury,” said Nibhrant Shah, MD and Co-CEO, Isprava Group. “The category has also matured. What used to be a fragmented market is now getting more structured. Young buyers and millennials have become major contributors to this shift.”
Rising demand can be assessed easily based on the increasing number of land deals. Developers acquired over 2,300 acres across 23 cities in the last 18 months, with more than 38% of the land earmarked for plotted or low-rise residential developments, according to data from JLL India.
“Buyers are increasingly looking at second homes at locations that allow extended stays during peak pollution months or otherwise, particularly between November and February. These properties are no longer viewed as occasional leisure assets but as seasonal living solutions that offer relief from congested urban environments,” said Abhinandan Lodha, Chairman, The House of Abhinandan Lodha.
According to him, current enquiries and conversions are centered around expansive private open spaces, proximity to nature, and connectivity with main cities. Depending on the affluence of the buyers, locations like Goa, Alibaug, and Khopoli near Mumbai are good examples.
Property consultants dealing in luxury properties second-home demand is increasingly linked to air quality and usability rather than leisure.
“During peak winter months, AQI levels in metros routinely move into the poor to severe range, prompting wealthy buyers to seek low-density locations where air quality and traffic remain consistently better. This has translated into sustained enquiry growth for plotted developments and villas in leisure and peri-urban markets with strong connectivity,” said Vikram Kapoor, a property consultant with clients from south Mumbai.
In response, several established developers known for their city-centric developments are now venturing into premium plotted formats and low-rise villa clusters. They are increasingly aligning supply toward low-density formats, gated plotted developments, and managed villa communities, as buyers seek predictable maintenance, regulated development norms, and long-term habitability rather than short-term appreciation alone.
For affluent Indians, a second home is increasingly viewed as a long-term investment in health, lifestyle quality, and family well-being, with clean air fast emerging as the newest luxury marker in residential real estate.
As this shift gathers momentum, second-home markets are expected to see more organized development and deeper institutional participation. Improved connectivity, clearer planning frameworks, and rising buyer awareness are likely to support sustainable growth, positioning these markets as long-term extensions of urban living rather than purely leisure-driven destinations.
