India's Luxury Real Estate Market Witnesses 37.8% Sales Surge in 2024
The luxury housing segment, including units priced at INR 4 crore and above, experienced a 37.8% increase in sales year-on-year during the first nine months of 2024, driven by robust economic conditions and consumer confidence.
Luxury Real EstateHighnetworth IndividualsProperty InvestmentsReal Estate MarketIndia Real EstateReal Estate NewsJan 01, 2025
With a strong economy and stable interest rates, the sector has seen significant growth, with major cities recording high sales and launches.
Although demand has slightly moderated in the latter half of the year, the strong performance earlier in the year has ensured impressive overall results.
Housing prices across the top eight cities have risen by 16% this year, with the luxury and ultra-luxury segments witnessing even greater momentum.
The luxury housing segment, which includes units priced at INR 4 crore and above, saw sales increase by almost 37.8% year-on-year during the January to September 2024 period, according to CBRE South Asia Pvt Ltd's report titled 'India Market Monitor Q3 2024 - Residential'.
Homes priced between INR 10 crore and INR 80 crore have become highly sought after as wealthy buyers look for spacious properties that suit their lifestyle and investment plans.
'Luxury housing has experienced a boom, with record-breaking sales driven by a strong stock market performance and increased consumer confidence.
As wealth grows, demand for premium living spaces has also increased,' said Navin Makhija of The Wadhwa Group.
Demand for high-end homes has surged in cities like Mumbai, Gurugram, and Delhi.
Many wealthy buyers are acting quickly to secure premium properties as supply struggles to keep up.
In Delhi, affluent buyers are moving away from traditional bungalows in favor of modern housing communities that offer amenities like dedicated parking, which is a significant challenge in urban areas.
Beyond amenities, these gated communities also provide opportunities to network and socialize with prominent members of society.
The club house becomes a platform to transact business deals while playing poker or sanction investments in the salon while getting a pedicure.
This year has seen remarkable property deals, such as Ajit Isaac's purchase of a 10,000 sq.
ft.
plot in Bengaluru for INR 67.5 crore.
In Noida, a developer offered a Lamborghini with a villa purchase worth INR 26 crore, highlighting the creative strategies being used to attract luxury buyers.
'The luxury housing segment is expanding as high-net-worth individuals seek homes that suit their lifestyle and provide advanced security, home automation, and premium amenities.
Developers are focused on superior craftsmanship, prime locations, and sustainability to attract this luxury market,' said Ashish Kukreja of Homesfy.in and Mymagnet.io.
Mumbai remains a leader in the luxury real estate market, accounting for 84% of all ultra-luxury deals across major cities in 2024.
Out of 25 ultra-luxury homes (homes priced more than INR 40 crore) sold this year, 21 transactions in Mumbai were collectively worth INR 2,200 crore.
Other cities like Hyderabad, Gurugram, and Bengaluru also reported significant deals, with DLF's ultra-luxury projects on Golf Course Road in Gurugram being the best example.
At least two separate ultra-luxury home deals collectively worth INR 80 crore were closed in Hyderabad's Jubilee Hills, while Bengaluru also closed one deal worth INR 67.5 crore.
Second Home destinations like Goa and Alibaug are experiencing booming demand with marquee villa properties selling like hot cakes.
'The unique appeal of areas like Alibaug and Lonavala, complete with picturesque views, natural landscapes, and proximity to Mumbai, has made them a coveted choice for luxury investments,' said Vikas Sutaria of Iraah Lifespaces.
Several factors are driving the luxury market.
The number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) has risen significantly, with the 2024 Hurun Rich List recording 1,539 people with a net worth of INR 1,000 crore or more.
According to India Sotheby's International Realty, 44% of HNIs and UHNIs see luxury properties as a way to grow their wealth through capital appreciation.
High-end homes also offer exclusivity, top-tier amenities, and social prestige, making them highly attractive.
With 79% of HNIs and UHNIs optimistic about India's economy, luxury real estate is viewed as a stable and secure investment.
'Strategic investments in luxury real estate are seen by India's UHNIs as a tool for multi-generational wealth and legacy creation,' said Amit Goyal, MD of India Sotheby's Realty.
He added that luxury homes also act as a hedge against inflation while offering lifestyle upgrades.
According to a recent report titled HSBC's Global Entrepreneurial Wealth Report 2024, almost six out of ten (61%) Indian wealthy business owners allocate personal wealth to real estate for their own use compared to one in two globally (51%).
This is reflected in the buyer's profile as well.
At least 80% of the total deals were concluded by businessmen, and 12% by senior professionals from various sectors.
Bollywood celebrities and leading legal and medical professionals accounted for the remaining 8%.
Experts said that several buyers are booking profits from the share market and investing in real estate, mostly for self-use.
Anshuman Magazine, Chairman and CEO of CBRE South Asia, highlighted the growing interest in luxury homes even in traditionally mid-range markets like Noida, Bengaluru, Pune, and Chennai.
'India's luxury housing market is witnessing significant growth, reflected in an increase in sales.
As the market shifts from bungalows to modern apartments and penthouses, the premiumization of amenities will be a key differentiator in luxury projects,' he said.
Leading developers like DLF, Oberoi, Lodha, Prestige, and Embassy are heavily investing in this segment.
Even developers who traditionally focused on mid-range housing are now launching luxury projects to tap into this lucrative market.
As developers adapted to the preferences of a wealthier clientele, the market not only expanded but set new benchmarks for quality and exclusivity.
As 2024 draws to a close, it's evident that India's luxury real estate market has enjoyed a remarkable year.
Rising demand, innovative offerings, and record-breaking transactions have positioned the segment as a key player in the country's economic narrative.
From Mumbai's dominance to emerging luxury hubs in Noida and Bengaluru, the market has responded dynamically to the needs of high-net-worth individuals.
With strong economic confidence and an expanding base of affluent buyers, the luxury real estate sector is set to continue its upward trajectory, offering a blend of exclusivity, investment potential, and lifestyle appeal in 2025.
Frequently Asked Questions
What is driving the growth in India's luxury real estate market?
The growth in India's luxury real estate market is driven by a strong economy, stable interest rates, and an increase in the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). These individuals see luxury properties as a way to grow their wealth through capital appreciation and enjoy exclusivity, top-tier amenities, and social prestige.
Which cities are leading in luxury real estate sales?
Mumbai, Gurugram, and Delhi are leading in luxury real estate sales. Mumbai, in particular, accounts for 84% of all ultra-luxury deals in 2024, followed by other cities like Hyderabad, Gurugram, and Bengaluru.
What are some remarkable property deals in 2024?
Some notable property deals in 2024 include Ajit Isaac's purchase of a 10,000 sq. ft. plot in Bengaluru for INR 67.5 crore and a developer in Noida offering a Lamborghini with a villa purchase worth INR 26 crore. These deals highlight the creativity and high value of luxury real estate transactions.
What amenities are popular in luxury housing communities?
Popular amenities in luxury housing communities include dedicated parking, club houses for networking and socializing, advanced security, home automation, and premium lifestyle facilities. These amenities cater to the exclusive and high-end needs of affluent buyers.
How are second home destinations performing in the luxury real estate market?
Second home destinations like Goa and Alibaug are experiencing booming demand. These areas, known for their picturesque views and natural landscapes, are becoming popular luxury investments due to their proximity to major cities like Mumbai.
Tags:
Related News Articles
PGA Star Patrick Cantlay Serves Up a New Venture in Real Estate
Patrick Cantlay joins LRE Management as General Partner, expanding the firm's reach in multifamily properties. Get the inside scoop on this unexpected career move.
Mumbai's First Underground Metro Line Nears Completion: A Boost to the City's Infrastructure
The Mumbai Metro 3's Phase 1 is set to start operations soon, with 97% of the work completed. This underground metro line is expected to revolutionize the city's transportation system.
Bollywood Power Couple Leases Luxury Mumbai Apartment
A top Bollywood power couple has recently leased a luxurious apartment in Mumbai's prime locality, according to real estate firm Square Yards. The monthly rent for the upscale property is a whopping Rs 7 lakh. The apartment, located in one of Mumbai's mos
Unlock Exclusive Savings with Address Maker’s Annual Address Fest in Bengaluru
Address Maker, a leading real estate developer in Bengaluru, is hosting its Annual Address Fest, offering exclusive deals and savings on premium properties across the city. From luxurious villa plots to prime apartments, this is the perfect opportunity to
Kolte-Patil Developers: Q4 Sales Bookings Drop 15% to Rs 631 Crore
Pune-based real estate firm Kolte-Patil Developers Ltd. reported a 15% decline in Q4 sales bookings to Rs 631 crore, attributed to lower volumes amidst a challenging market.
Hyderabad on the Verge of a Major Real Estate Boom
Telangana Civil Supplies and Irrigation minister N Uttam Kumar Reddy predicts a significant boom in Hyderabad's real estate and construction industry