This surge in demand for luxury homes is a direct result of changing consumer preferences and evolving lifestyles, where buyers now prioritize not only the size and design of their homes but also the overall living experience.
The demand for luxury homes in India has skyrocketed in recent years, fueled by a growing number of affluent buyers increasingly seeking exclusive, high-quality properties. According to a report by Mordor Intelligence, from the present estimated market size of USD 38.02 billion, the Indian luxury housing market is expected to reach USD 101.92 billion by 2029. Another CBRE research reported that the luxury residential segment, houses priced above Rs 4 crore, recorded a 10% YoY growth in sales in the first quarter of 2024. Affluent buyers and HNIs are key drivers behind this demand, as they prioritize larger, more sophisticated living spaces that offer privacy, security, and luxury.
Moreover, NCR has seen a 57% drop in unsold inventory, with Gurugram accounting for 37%, which reflects positive market dynamics. Gurugram, historically NCR’s top residential and commercial hub, continues to maintain its leadership. The decrease in unsold stock from 53,136 units in Q1 2018 to 33,326 units today showcases strong demand. Additionally, while the upcoming Jewar Airport boosts sales in the Noida-Greater Noida region, Gurugram’s proximity to Indira Gandhi International Airport ensures its ongoing dominance in the luxury real estate market.
Besides, as per Mordor Intelligence’s report, India’s commercial real estate sector is experiencing rapid growth, with projections indicating the market will reach USD 106.05 billion by 2029, up from USD 40.71 billion today. This growth, fueled by the expanding economy, presents significant opportunities for both self-use and investment. Gurugram’s commercial segment, particularly in emerging areas like Southern Peripheral Road (SPR), Dwarka Expressway, and Sohna Road, offers relatively competitive pricing, making it an attractive option for long-term returns.
Sachin Gawri, Founder & CEO, RISE Infraventures, says, “The real estate market is poised for massive growth, driven by rising demand for high-quality, well-located properties in both commercial and residential segments. With the luxury segment emerging as a key driver, this trend is not just a temporary spike but a reflection of broader changes in consumer behavior since buyers now prioritize lifestyle, quality, and exclusive experiences. As demand for high-end properties continues to surge, developers and investors need to focus on strategic location selection and world-class amenities. Areas like Noida and Gurugram are seeing immense growth, particularly due to their proximity to major infrastructure projects. Hence, we believe understanding these market dynamics and positioning investments accordingly will lead to substantial long-term returns. As the sector matures, there is significant opportunity for growth, especially for those who stay ahead of these evolving trends.”
Moreover, the increase in high-value projects in India is transforming the luxury real estate market, especially in Delhi NCR, Mumbai, Bengaluru, and other cities. These projects come with improved specifications, strategic locations, and amenities, which appeal to affluent customers. This growing luxury segment is influencing the broader real estate market, prompting changes in designs and layouts across other property segments. Developers are incorporating premium features into various offerings, enhancing overall market standards.
Therefore, as consumer preferences evolve, developers are likely to introduce even more innovative and personalized living solutions. The rise in demand for luxury residential properties marks the beginning of a new era in real estate, setting the stage for ongoing innovation and long-term value in the sector.
(This article is part of DMCL Consumer Connect Initiative, a paid publication programme. DMCL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The DMCL Editorial team is not responsible for this content.)
