Luxury Housing Market Surges Beyond Metros: A New Era of Premium Living
The luxury housing market in India is entering a phase of rapid maturity and expansion, reshaping residential patterns across major cities and emerging hubs. According to a Magicbricks' India report, the broader luxury market is projected to grow to $103 billion by 2030 at a CAGR of 35% from $17 billion in 2024. This growth is not limited to traditional luxury items like jewelry, watches, and automobiles; it is now decisively shaping the housing market as well.
Luxury homes now account for 27% of overall housing supply, up from 16%, as developers push larger layouts, premium specifications, and integrated lifestyle amenities. Demand has risen from 14% to nearly 18% of total home-seeking activity, driven by homebuyers prioritizing superior design, convenience, and technology-enabled living.
A key measure of this shift is the Magicbricks Luxury Price Index (LPI), which tracks how luxury micro-markets are priced relative to mainstream housing. In major Tier-1 cities, the LPI has moderated from 2.32 in 2021 to 2.27 in 2025, indicating that mainstream prices have risen steadily, narrowing the premium gap. In contrast, emerging luxury destinations have seen their LPI jump from 1.00 to 1.44, supported by a 27% rise in demand and an 86% surge in supply.
Median luxury prices underline the growing depth of premium housing across multiple cities. Mumbai leads with a median luxury price of ₹9.66 crore, followed by Gurugram at ₹5.46 crore, Bengaluru at ₹2.91 crore, Hyderabad at ₹2.20 crore, Chennai at ₹2.00 crore, Pune at ₹1.97 crore, and Kolkata at ₹1.50 crore. In terms of price bands, demand is strongest in the ₹2-3 crore and ₹3-5 crore segments, alongside rising ultra-premium purchases above ₹10 crore in Mumbai and Gurugram.
Several micro-markets have witnessed sharp transformations. Luxury's share has climbed on the Noida Expressway from 10% in 2021 to 47% in 2025, Devanahalli in Bengaluru from 9% to 40%, Ballygunge in Kolkata from 12% to 50%, and Porvorim in Goa from 19% to 47%, owing to improved infrastructure, connectivity, and township-led development.
This surge in the luxury housing market is not just a trend but a significant shift in how people are choosing to live. The demand for high-end design, premium amenities, and integrated lifestyle features is driving developers to create more luxurious and sophisticated living spaces. As infrastructure and connectivity improve in emerging hubs, the appeal of luxury housing is likely to continue growing, making it a promising sector for both investors and homebuyers.
