India's Luxury Residential Market Sees Significant Growth Amid Rising Demand
The Indian luxury residential market is witnessing a surge in demand, driven by rapid urbanization and rising income levels, with sales of luxury housing units increasing by 27% in the first half of 2024.
Luxury Residential MarketIndian Real EstateHigh End HomesLuxury Housing DemandMillennialsHigh Net Worth IndividualsUrbanizationEconomic GrowthReal Estate MumbaiJul 19, 2024
From state-of-the-art high-rise apartments in Mumbai and Delhi to lavish villas, luxury homes are in high demand. Tier-1 cities such as Mumbai and the National Capital Region (NCR) of Delhi have been at the forefront of luxury housing demand, even outpacing sales in the affordable housing segment.
According to CBRE, sales of luxury housing units priced at ₹4 crore and above increased by 27% during the January–June period, reaching approximately 8,500 units across seven major cities. The Delhi-NCR, Mumbai, and Hyderabad markets led this trend, accounting for around 84% of luxury housing sales in these top cities.
India's millennials, who make up 36% of the population, are driving the demand for luxury homes, with an estimated combined spending power exceeding US$330 billion. The rise of high-net-worth individuals in India also contributes to the demand for luxury homes that offer exclusivity, privacy, and a range of high-end amenities.
The Indian residential segment has undergone major structural transformations over the last decade, with strong policy interventions, economic momentum, and an ardent desire to own and upgrade homes driving growth. In CY2023, India’s residential real estate sector demonstrated resilience with sustained strong demand, with property sales surging significantly higher than the previous year.
Rapid urbanization, rising income levels, and a growing preference for premium residential properties are driving the luxury boom. Metropolitan landscapes are undergoing significant transformations, leading to a surge in demand for high-quality housing and a superior lifestyle.
Developers have capitalized on the demand, launching multiple projects in the luxury segment, with many selling out within minutes of their release. The broader residential housing market is also experiencing a surge in demand, leading to rising prices. Despite higher prices, sales continue to grow, prompting developers to launch more projects.
The Indian real estate market is currently valued at approximately ₹39 lakh crore, contributing 7.3% to the total economic output. By 2047, it is projected to expand to ₹484 lakh crore, accounting for 15.5% of the total economic output. This growth is driven by factors such as rising demand for homes due to rapid urbanization and increasing incomes.
Frequently Asked Questions
What is driving the demand for luxury homes in India?
Rapid urbanization, rising income levels, and a growing preference for premium residential properties are driving the demand for luxury homes in India.
What is the current value of the Indian real estate market?
The Indian real estate market is currently valued at approximately ₹39 lakh crore, contributing 7.3% to the total economic output.
What is the projected growth of the Indian real estate market by 2047?
The Indian real estate market is projected to expand to ₹484 lakh crore by 2047, accounting for 15.5% of the total economic output.
Which cities are leading the luxury housing demand in India?
Tier-1 cities such as Mumbai and the National Capital Region (NCR) of Delhi are leading the luxury housing demand in India.
What is the estimated combined spending power of India's millennials?
The estimated combined spending power of India's millennials is exceeding US$330 billion.
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