T
he year 2024 saw a significant shift towards luxury living in India, with real estate developers launching high-end projects worth ₹10 crore to ₹80 crore. This trend indicates that the demand is skewed towards luxury and ultra-luxury homes, driven by wealthy Indians seeking spacious properties that cater to their lifestyle and long-term investment goals.
The fear of missing out (FOMO) on desirable properties has led to a surge in demand for luxury homes, particularly in markets like Mumbai, Gurgaon, and Delhi. Rich investors are now opting for housing communities with modern amenities, such as dedicated parking space, which is a major challenge in these cities.
Luxury condominiums offer their residents a platform to interact with high-society individuals, facilitating business deals and social connections. In Gurugram, ultra-luxury units worth ₹80 crore have been lapped up by investors within days, while Noida has seen established developers launching projects in the ₹5 crore range due to land scarcity and infrastructure upgrades.
Recent reports highlight that wealthy Indian business owners allocate a significant portion of their wealth to real estate for personal use. According to HSBC's Global Entrepreneurial Wealth Report 2024, almost six out of ten Indian wealthy business owners invest in luxury properties for lifestyle upgrades and capital appreciation.
Major cities like Mumbai, Delhi-NCR, Bengaluru, and Gurugram are top choices for rich Indians' investments, with second-home destinations like Goa and Alibag experiencing booming demand. Indian-origin billionaires are also making ultra-luxury purchases abroad, with Dubai, New York, London, and European destinations being popular choices.
HNIs own multiple properties, including high-end homes in their primary residence, secondary homes in leisure destinations, and international assets. Real estate experts point out that most listed developers are targeting this affluent segment, launching luxury projects to cater to the growing wealth and appetite of HNIs and UHNIs.
The luxury housing segment has seen significant growth, with sales increasing by almost 38% Y-o-Y during the Jan-Sep 2024 period. As the market shifts from bungalows to modern apartments and penthouses, premiumization of amenities will be a key differentiator in luxury projects.
