High-end residential properties are increasingly sought after in India as the number of High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs) with substantial disposable income has grown due to the country’s swift economic development. This growth has driven a rising desire for luxurious living spaces with state-of-the-art amenities.
“India’s luxury real estate market is experiencing a significant transformation, with a projected growth rate of over 5 percent from 2023 to 2028,” says Ritesh Mehta, senior director and head of residential services for the north, east, and west regions at JLL. “The revival of India’s luxury residential real estate sector has led to robust growth, with about 45 percent of the total luxury stock added in the past five years alone,” he adds.
Anuj Puri, chairman of the Anarock Group, notes that luxury housing accounted for only 4 percent of the market in Q1 2019, showing a complete reversal of trends. “The segment has also grown at a CAGR of over 9 percent since 2019 in the major cities,” adds Mehta.
While lifestyle enhancements are still a key driver, the 2024 Luxury Outlook Survey by India Sotheby’s International Realty highlights that capital appreciation has now become the main reason affluent investors are purchasing real estate.
“This change points to a revival of investor interest in the property market,” explains Ashwin Chadha, CEO of India Sotheby’s International Realty. “Furthermore, many investors surveyed indicated a desire to build assets for future generations, reflecting a long-term investment strategy and a preference for high-quality luxury real estate in prime areas.”
According to Anuj Puri from Anarock, the supply of new luxury homes was nearly 28,020 units in the first quarter of 2024. “Looking ahead, we expect at least a 5-10 percent increase in the overall supply of new luxury homes in the coming quarters,” says Puri.
Recent research by Anarock indicates that out of the approximately 130,170 units sold across the top seven cities in Q1 2024, luxury home sales priced above Rs 1.5 crore accounted for 21 percent, equating to about 27,070 units. The luxury housing segment has become a highly attractive investment option, particularly among Ultra High-Net-Worth Individuals (UHNIs), High-Net-Worth Individuals (HNIs), Non-Resident Indians (NRIs), and industrialists.
“NRIs are increasingly investing in India’s luxury real estate market, contributing $13.1 billion to the sector in 2023 alone,” says Ritesh Mehta. “By 2025, it is projected that NRIs will account for 25 percent of the country’s total real estate investments.”
During the pandemic, developers offered discounts and multiple deals, making luxury properties even more appealing. “In response to rising consumer demand, developers shifted their focus from affordable housing to launching more projects in the luxury category, thereby increasing the new supply,” says Anuj Puri.
So, what are Indians buying in luxury real estate?
