In a remarkable year for luxury real estate in India, demand for high-end properties surged, with total sales hitting Rs 4,316 crore in the first 11 months of 2024. This figure surpasses the total residential sales of Rs 4,036 crore for the entire year of 2023, according to Anarock Research. With projections indicating that the luxury segment will continue to thrive in 2025, real estate firms are capitalizing on the growing wealth among high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs).
Luxury Real Estate: Growth Fueled by Economic Stability and Rising Wealth
The significant rise in sales can be attributed to a range of factors, including economic stability, a growing number of HNWIs and UHNWIs, and a steady appreciation in property values. According to Prashant Thakur, regional director & head of research at Anarock, the luxury segment is poised for sustained growth due to these key drivers.
“We are seeing a steady increase in the number of HNWIs and UHNWIs in India,” Thakur said. “This growing affluence is creating a strong foundation for the continued rise in luxury property demand.”
Ultra-Luxury Homes: A Dominant Trend in Key Cities
The luxury segment saw an uptick in ultra-premium property sales, with 54 ultra-luxury homes sold across major cities during the first 11 months of 2024, each priced at over Rs 40 crore. This includes 48 exclusive apartments and 6 sprawling bungalows. The Mumbai Metropolitan Region (MMR) dominated the ultra-luxury market, accounting for 47 of these sales.
Several high-profile transactions include:
Jagdish Master, director of Deep Financial Consultants, purchased a Rs 105 crore apartment in Mumbai’s Worli area in November 2024. His wife, Urjita Jagdish Master, also bought a Rs 105 crore apartment in the same building.
Shreegopal Kabra, promoter of RR Kabel, bought two luxury apartments in Worli for a combined Rs 198 crore in October 2024.
These large-scale transactions underscore the ongoing demand for luxury living spaces in India’s most prestigious locations.
Why Luxury Real Estate is Booming
The continued growth in luxury property sales reflects a strong economic foundation and evolving buyer preferences. According to Sangram Baviskar, founding member & CEO of TruBoard Partners, the luxury market has shown remarkable momentum, driven by the growing affluence of CXOs, industrialists, and young wealth creators in India.
“The demand for premium properties in markets like Mumbai, Delhi NCR, and Bengaluru is primarily being fueled by significant wealth creation from a surging economy and booming equity markets,” Baviskar said. He also noted a shift towards spacious, amenity-rich homes that combine luxury with functionality.
The growing trend of luxury real estate as an investment is also helping to drive demand. As HNWIs increasingly view luxury homes as a solid asset class, they are investing in markets where luxury supply remains constrained, particularly in sought-after micro-markets.
Projected Growth: 2025 to Set New Records
Looking ahead, 2025 is expected to set new records for luxury real estate sales, with more developers turning their focus to this lucrative segment. Ritesh Mehta, senior director and head of residential services at JLL India, highlighted that positive economic indicators and the bull run in the stock market are likely to continue fueling demand for ultra-luxury properties.
In 2024, the luxury segment saw a 66% increase in new supply across the top seven cities, as developers responded to the growing demand for properties priced over Rs 2.5 crore. The increased developer focus on luxury projects is driven by several factors, including higher profit margins and limited availability of prime land in key urban areas.
Challenges and Sustainability
While the luxury sector is booming, rising land costs and the limited availability of premium parcels in major cities present challenges for developers. Nevertheless, as Baviskar pointed out, these constraints are encouraging developers to focus on luxury real estate, as it offers higher returns compared to mid-market housing.
However, the global economic headwinds, such as inflation and geopolitical uncertainties, may moderate the growth trajectory in the future. Despite these challenges, the luxury real estate market has shown remarkable resilience, and experts remain optimistic about its long-term prospects.
The Future of Luxury Real Estate in India
India’s growing population of HNWIs and UHNIs, combined with rising property values and increasing demand for spacious, high-end living spaces, suggests that the luxury real estate market will continue its upward trajectory in 2025 and beyond. As these affluent buyers seek exclusivity, luxury, and functionality, developers are likely to deliver even more refined and opulent living spaces to meet this demand.
With strong wealth creation, high demand in key cities like Mumbai, Delhi NCR, and Bengaluru, and a shift towards luxury as a sustainable investment, India’s luxury real estate market appears set for another record-breaking year.
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