India's Luxury Housing Market Sees Unprecedented Growth: What's Driving the Demand?
Millennials and high-net-worth individuals are driving the demand for luxury housing in India, with Delhi-NCR, Mumbai, Hyderabad, and Pune reporting significant sales.
Luxury HousingReal EstateIndiaMillennialsHighnetworth IndividualsReal Estate PuneSep 02, 2024
Several factors have contributed to this growing demand for luxury housing. One major factor is the rise of millennials, who are increasingly seeking luxurious lifestyles. According to CoreLogic data, 54 per cent of home purchases were made by millennials.
Urbanisation has also played a significant role in the sale of luxury homes in Delhi-NCR, Mumbai, Hyderabad, and Pune. Delhi-NCR sold around 3,300 luxury homes in the first half of 2024, a 13.8 per cent increase from the previous year.
The growth of luxury housing has been driven by high-net-worth individuals, the purchasing power of millennials, and the desire for luxurious lifestyles. As incomes have risen, so have expectations. “The Indian luxury homes market has never been this robust. Besides various factors, the increased preference for such homes is driven by enhanced lifestyle aspirations and the desire to live in iconic addresses developed by reputed builders,” said Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group.
The ultra-wealthy are not just looking for a place to live; they want a luxurious home that also represents a sound investment with a higher ROI. According to a report by Cushman and Wakefield, 61 per cent of new residential projects in Q1 2024 were in the luxury segment.
“In recent years, there has been a significant shift towards luxury housing. Coupled with economic growth and infrastructure development, high-net-worth individuals are seeking spacious, comfortable homes with world-class amenities and aspirational values. Delhi-NCR, especially the Noida Expressway, Greater Noida, and Yamuna Expressway regions, have emerged as sought-after locations,” said Yash Miglani, MD of Migsun Group.
“The demand for luxury homes in India is driven by a combination of factors—rising incomes, lifestyle aspirations, urbanisation, and infrastructural development, such as the construction of Jewar Airport. This is an exciting time for both buyers and investors in the luxury real estate market,” he added.
Frequently Asked Questions
What is driving the demand for luxury housing in India?
The demand for luxury housing in India is driven by a combination of factors, including rising incomes, lifestyle aspirations, urbanisation, and infrastructural development.
Which cities are reporting significant sales in the luxury housing market?
Delhi-NCR, Mumbai, Hyderabad, and Pune are reporting significant sales in the luxury housing market.
What percentage of new residential projects in Q1 2024 were in the luxury segment?
According to a report by Cushman and Wakefield, 61 per cent of new residential projects in Q1 2024 were in the luxury segment.
Who is driving the demand for luxury housing in India?
Millennials and high-net-worth individuals are driving the demand for luxury housing in India.
What is the expected ROI for luxury homes in India?
The ultra-wealthy are looking for luxurious homes that also represent a sound investment with a higher ROI.
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