What’s Fuelling India’s Luxury Housing Boom? A Look at the Homebuyer Mindset in 2025

By Gautam Kanodia, Founder, KREEVA and Kanodia Group

Luxury housing has reached an inflexion point. What was once a niche offering, confined to a few select localities in metro cities, is now powering ahead as a major force in the residential market driven not just by wealth but by a decisive shift in homebuyer mindset.

We are witnessing this firsthand, especially in Delhi-NCR. While overall residential sales in the region declined 23 per cent in H1 2025, luxury homes priced above INR 5 crore increased by nearly 9 per cent YoY. That’s not a coincidence. It’s a sign of what’s changing beneath the surface.

The luxury buyer in 2025 is a very different consumer from a decade ago. They are not buying a house; in fact, they are buying a lifestyle upgrade, a future-proof asset and a sense of belonging to a curated community.

Today’s new-age buyers are globe-trotters, and for them, space and design are non-negotiable. Increasingly, so are things like wellness, privacy and brand association. They are walking into show apartments with sharper questions—about automation, insulation, water quality and concierge services—and making decisions with long-term thinking.

Some of the top drivers behind the boom include:

Wellness Takes Centre Stage

Post-2020, health is no longer an afterthought—it is central to the buying decision. Whether it is natural ventilation, access to green pockets or low-density living, wellness is the new luxury. We are integrating spaces for yoga, meditation decks, air purification systems and a lot more.

Branded Residences & Power of Association

The sector is increasingly witnessing greater traction for branded residences, collaborations between developers and luxury hospitality or design brands. These homes come with five-star services and global aesthetics. They also provide a sense of security, both financial and emotional, to buyers.

Real Estate as a Hedge Against Volatility

In a year where equities have been unpredictable and global macro headwinds persist, many affluent Indians are choosing real estate as a store of value. Prime residential supply is limited in key markets, making well-located luxury projects particularly attractive from an investment standpoint.

One of the most exciting aspects of this boom is the diversity of luxury buyers, which includes the first-generation entrepreneur, flush with IPO or exit capital, looking for a statement home. Or a globally mobile executive returning to India wants a house that matches the standards they’re used to abroad.

Then there’s the young inheritor—someone who’s grown up around wealth but has distinctly modern tastes, and wants homes that feel global but rooted in Indian aesthetics.

Many of these buyers have experienced luxury in Dubai, London or Singapore. They don’t want to compromise—and frankly, they shouldn’t have to. Our job is to build homes that meet those expectations.

Infrastructural development is providing the fillip. Take Gurugram’s Southern Peripheral Road or Dwarka Expressway. In the last few years, they have been fuelling the region’s transformation. The completion of key infrastructure projects has unlocked real value, both in terms of liveability and long-term capital appreciation.

Luxury housing today is no longer about marble flooring and Italian kitchens. Rather, it is more about thoughtfulness. As today’s luxury buyers are more informed and demanding, they seek value.

According to Mordor Intelligence, the luxury housing market is projected to grow at a 22 per cent CAGR, touching nearly $102 billion by 2029. But more than the numbers, it is the sentiment that stands out. Luxury real estate today is no longer just about affluence. It is about aspiration.

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty&More’s views.