Posted June 4, 2025 by mordorintelligence
Mordor Intelligence has published a new report on the India Luxury Residential Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
Introduction: Rapid Expansion in Premium Housing
India’s luxury residential real estate market is witnessing a strong growth phase, driven by rising demand for premium living spaces in metro cities and increased investments from non-resident Indians (NRIs). The India luxury residential real estate market is expected to reach USD 44.11 billion by 2025, reflecting a robust appetite for high-end homes among affluent buyers.
In the first half of 2024, residential unit sales across India’s top eight cities rose by 11% year-over-year, marking the highest growth in over a decade. Luxury properties priced at INR 1 crore and above made up 41% of these sales, up from 30% in the same period of the previous year. This shift in demand is largely attributed to changing buyer preferences and improved income levels among upper-middle-class and high-net-worth individuals.
Alongside this, developers launched 183,401 new units in the first half of 2024, a 5.8% increase compared to the previous year. Mumbai continues to lead the luxury housing space with 47,259 units sold, setting a 13-year high. The city also saw a remarkable 117% increase in the sale of properties priced above INR 1 crore.
The focus on premium housing has led to a decline in sales of affordable units. Homes priced below INR 50 lakh dropped to 27% of total transactions in the first half of 2024, compared to 32% a year ago. This shift underscores the evolving priorities of homebuyers in India's urban centers.
Key Trends Driving the Market
Branded Residences Gaining Momentum
One of the most noticeable trends in India’s luxury real estate market is the rise of branded residences. These are premium housing projects associated with luxury hospitality brands that bring global design, amenities, and services into the residential space. Buyers are increasingly drawn to such properties for their exclusivity, status, and value-added services. The presence of a brand also enhances trust and helps command higher resale value, making them attractive long-term investments.
Non-Resident Indians Driving Sales
NRIs are emerging as a significant force in the luxury residential market. Their share in property purchases has increased from 7–10% before the pandemic to nearly 25% in recent years. Factors such as a favorable exchange rate, the emotional appeal of owning a home in India, and confidence in Indian real estate have contributed to this trend. Cities like Bengaluru, Mumbai, and Delhi are among the top choices for NRIs, with many preferring luxury apartments and gated communities for both personal use and investment purposes.
Changing Buyer Preferences
Post-pandemic, there has been a clear shift in consumer preferences. Buyers now prioritize larger homes with balconies, work-from-home spaces, and access to wellness amenities. This has pushed developers to rethink layouts and amenities in high-end projects. Gated communities offering features like gyms, clubhouses, and landscaped open spaces are particularly in demand. This lifestyle-centric approach is redefining luxury housing beyond just location and interiors.
Market Segmentation
India’s luxury residential real estate market is segmented based on property types and geographic regions. Understanding these segments is crucial to assessing growth patterns and buyer behavior.
By Property Type:
Villas and Independent Homes: Typically located on city outskirts or in suburban zones, these cater to buyers looking for privacy, larger space, and an exclusive lifestyle.
Apartments and Condominiums: Preferred in urban centers due to their security, location advantages, and access to shared premium amenities. These dominate the luxury housing space in cities like Mumbai, Delhi, and Bengaluru.
By Geography:
Mumbai: Currently the largest market for luxury housing in India, the city has seen an all-time high in sales of high-end properties. Areas like South Mumbai and Western suburbs remain top-performing zones.
Delhi NCR: Known for offering some of the most premium real estate in India, with nearly 61% of new launches priced above INR 15,000 per sq. ft. Developers here cater to a clientele looking for both modern comforts and proximity to political and business hubs.
Bengaluru: Tech capital Bengaluru continues to attract buyers with high purchasing power. Gated luxury villas and high-rise apartments in Whitefield, Sarjapur Road, and North Bengaluru are seeing high demand.
Chennai, Kolkata, Pune, Hyderabad: These cities are also witnessing growth in the luxury segment, though at a relatively moderate pace compared to the top three metros. Improved infrastructure and the rise of IT and financial hubs are contributing to localized growth.
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Key Players in the Market
Several developers with a proven track record are leading the luxury housing segment in India. These companies focus on offering premium construction quality, top-tier amenities, and customer-centric services. The most active players include:
Indiabulls Real Estate: Known for luxury developments in Mumbai and NCR.
Oberoi Realty: A Mumbai-based developer with a strong portfolio in the premium housing segment.
Godrej Properties: With projects across India, the company offers a mix of high-end apartments and gated villa communities.
Brigade Group: Prominent in South India, particularly in Bengaluru and Chennai.
Omaxe: Focuses on premium residential developments in North India.
These developers are adapting quickly to market trends, incorporating sustainability, smart home technologies, and branded partnerships to appeal to the new-age luxury buyer.
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Conclusion: Looking Ahead
India’s luxury residential real estate market is growing steadily, supported by a strong influx of NRI capital, evolving consumer preferences, and a greater focus on branded and lifestyle-driven developments. With the market expected to reach USD 44.11 billion in 2025 and further expand to USD 118.30 billion by 2030, the outlook remains positive.
While affordability remains a concern in the broader housing sector, the luxury segment has successfully carved out a space where quality, exclusivity, and service matter more than price. Developers who understand and deliver on these expectations are well-positioned to lead the next phase of growth in India’s high-end real estate landscape.
For more market analysis, visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/india-luxury-residential-real-estate-market?utm_source=prfree.org
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Issued By | Mordor Intelligence |
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Country | India |
Categories | Tourism |
Tags | india luxury residential real estate market , india luxury residential real estate market size , india luxury residential real estate market share , india luxury residential real estate market trends , india luxury residential real estate market report |
Last Updated | June 4, 2025 |