Why Future of Luxury Housing Lies in Suburbs

Ashwani Kumar, Pyramid Infratech

As urban areas become more congested, the definition of luxury living is quietly shifting towards larger homes, private terraces and green surroundings found in the suburbs.

The pandemic nudged homebuyers to reassess their priorities, valuing space, privacy and wellness more than ever before. Add to that the rapid pace of infrastructure development, including expressways, metro lines and the upcoming airport, and the suburbs are no longer distant outposts but the new frontier of high-end residential living.

In the urban areas, irrespective of their development, congested roads, inflated land prices and a lack of open space have made it increasingly difficult to introduce fresh luxury offerings in city centres. Whereas suburban neighbourhoods present a compelling alternative, offering more space, cleaner air and a calmer pace of life without sacrificing connectivity.

In NCR, notably in Gurugram, micro-markets like the SPR corridor, the Dwarka Expressway, Sohna and others witness an upsurge in real estate activity.

According to PropEquity, the Gurugram housing market witnessed strong demand for luxury homes last year with sales rising 66 per cent to nearly INR 1.07 lakh crore. The report highlights that over the past five years, SPR has witnessed an impressive eightfold surge in residential launches with 14,740 housing units introduced between 2020 and March 2025.

This marks a significant rise compared to just 1,819 units launched during the 2015 to 2019 period. Hence, both developers and buyers are shifting focus to these emerging corridors, where high-end projects are flourishing amid a backdrop of planned infrastructure and open skies.

Besides, according to Anarock, the NCR region has recorded an 81 per cent increase in average property price to INR 8,300 per sq ft in Q1 2025 from INR 4,580 per sq ft in 2020.

Greater Noida has seen the highest average property price increase in NCR over the past five years, rising by 98 per cent to INR 6,600 per sq ft in Q1 2025 from INR 3,340 per sq ft in 2020, it said.

Noida followed with a 92 per cent average price rise, reaching INR 9,200 per sq ft in Q1 2025 from INR 4,795 per sq ft in 2020. A key driver behind the rise is the dramatic improvement in infrastructure, which has effectively blurred the lines between city centres and outlying areas.

Micro-markets like the Noida-Greater Noida Expressway and the Yamuna Expressway have transformed into thriving hubs for integrated luxury townships. The upcoming Noida International Airport in Jewar is further fuelling demand, positioning the Yamuna Expressway corridor as a future-ready destination for high-end real estate.

Driving this shift is a new generation of buyers, primarily millennials and Gen X high-net-worth individuals who are redefining what luxury means. Their preferences lean toward smart homes equipped with the latest technology, low-density living for enhanced privacy and communities that prioritise wellness, green spaces, and holistic living.

There’s also a noticeable trend of reverse migration with families choosing to move out of crowded neighbourhoods into expansive, self-contained luxury townships in the suburbs. NRIs and global investors are echoing this sentiment, increasingly favouring peripheral locations that offer not just exclusivity and lifestyle upgrades but also strong prospects for long-term capital appreciation.

Thus, the suburbs are no longer just the affordable alternative; they’ve evolved into the new status symbols of modern luxury. With expansive homes, curated amenities and seamless connectivity, suburban locales now embody the very ideals that once defined upscale urban living. As preferences continue to shift, the future of luxury housing is unfolding not within the crowded city skyline but far beyond it, across the well-planned, high-growth corridors of the suburbs.