Luxury real estate in India on the rise as high-income buyers drive growth

Noida: The luxury housing market in India is experiencing a boom, with record sales and surging demand from high-net-worth individuals (HNIs), non-resident Indians (NRIs), and affluent millennials. As property prices climb in metros like Mumbai, Delhi-NCR, and Bengaluru, developers are doubling down on high-end projects.

Experts attribute this upward trend to rising disposable incomes, post-pandemic lifestyle shifts, and the appeal of real estate as a stable investment asset.

“The luxury housing market in India is phenomenal,” Abhinav Joshi, Head of Research for CBRE India, Middle East and North Africa said while moderating a panel discussion on ‘Luxury Housing: Renewed, Revived & Restyled’ during the R&M Podium real estate conference organised by Realty & More magazine here on May 30. “In the last two to three years after the pandemic, there has been a 50 percent growth of the luxury housing market.”

The increasing number of HNIs and ultra-high-net-worth individuals (UHNIs) in India is a primary catalyst for the luxury real estate boom. These affluent individuals are investing in premium properties not only for personal use but also as a means of wealth preservation and capital appreciation.

The COVID-19 pandemic has reshaped consumer priorities, with a heightened emphasis on health, wellness, and spacious living. Buyers are now seeking homes that offer ample space, private amenities, and a connection to nature. This shift has led to increased demand for luxury villas and apartments equipped with state-of-the-art facilities.

“We are primarily known for our residential properties,” Jatin Goel, Executive Director of Omaxe and one of the panellists in the discussion, said. “There is a boom now in the luxury sector. Post-COVID, things have changed. Disposable income has grown. People do not invite guests to their flats but rather to the clubs within their societies. We are working hard to deliver on that.”

Remarking that demand for luxury housing in India is growing, Vibhor Tyagi, MD of VVIP Group and another panellist in the discussion, said that the market is relatively young in the National Capital Region (NCR) and North India.

Ashim Choudhury, Senior VP (Research and Advisory Services) at ANAROCK, who also participated in the discussion, concurred.

“Less than a decade ago, we were talking about affordable housing,” Choudhury said. “In the post-pandemic era, people are talking about luxury and ultra-luxury housing. India today has around 850,000 HNIs.”

Comparing the luxury housing market in Manhattan, New York, where such properties cost $4,000 per square foot. However, at the same time, he added that such properties in Noida are yet to touch the $1,000 mark.

According to Deepak Mishra, Director and Head (North India Residential Services) at Colliers India, in the last few years, customers have been looking for construction quality.

“They want luxury amenities,” Mishra said. “Such customers don’t want to live with average people. They look at the entire ecosystem like whether there is a modular kitchen or whether there is a terrace on the floor.”

He also pointed out to the fact that, prior to the COVID-19 pandemic, NRI investment in India was 2 percent. But now this has gone up to 10 percent.

According to Choudhury, there is now definitely a demand for luxury housing in the Tier II cities of India as well.

“Ultra-luxury housing costs Rs 50 crore and above,” moderator Joshi said. “Luxury housing costs Rs 4-5 crore and above.

Choudhury also said that a recent survey has shown that there is a rise in the number of people who are ready to moderately increase their budget to buy property that ensures sustainability.

Salil Kumar added that Indians are investing in four things – real estate, gold, stock markets, and now education.