The luxury housing market in India is witnessing unprecedented growth, driven by a spike in demand from high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs).

Reportedly, the properties ranging between ₹10 crore to ₹100+ crore are becoming increasingly popular among the affluent, reflecting a shift towards high-end living as a status symbol.

Luxury real estate projects in Kolkata, a city traditionally known for its cultural heritage, are reshaping the skyline.

Notable developments like ‘Forum Atmosphere’ and ‘The 42’ on Chowringhee Road feature innovative amenities, such as the world’s first residential floating sky sculpture, and have propelled luxury apartment sales to a 153% increase since pre-COVID times.

Other cities are also emerging as key players in the luxury market. Gurugram, for instance, saw a record sale of an 11,000 sq ft flat at ‘The Camellias’ for ₹114 crore, with another unit fetching ₹95 crore shortly after.

These transactions highlight the city’s growing importance in the luxury segment, traditionally dominated by Mumbai and Delhi. Hyderabad also recorded a significant transaction exceeding ₹40 crore, further underscoring the nationwide trend.

Mumbai remains a major hub for luxury real estate. Last year, fashion designer Vratika Gupta purchased a sea-view residence in the opulent Three Sixty West tower for ₹116.42 crore. The city’s prime locations continue to attract significant investments, despite the capital value increases being more moderate compared to other regions.

Out of the total 3.65 lakh units sold across the top seven cities in 2022, about 18 percent (approximately 65,680 units) were in the luxury category, reveals research conducted by real estate consultancy firm Anarock Group. Contrastingly, of the total 2.61 lakh units sold in 2019, just seven percent (approximately 17,740 units) were in the luxury category.

While lifestyle upgrades are a significant motivator, India Sotheby’s International Realty’s Luxury Outlook Survey 2024 reveals that most affluent investors now prioritise capital appreciation as their primary reason for buying real estate.

The luxury housing boom is partly driven by capital appreciation and the desire for real estate as a hedge against inflation.

The Union Budget’s cap on capital gains has spurred HNWIs to finalize deals before the financial year ends, contributing to the market’s momentum.

Additionally, economic growth, forecasted at around 6.5-7% by the Reserve Bank of India, is expected to sustain the demand for luxury homes in the coming years.

It is worth highlighting that the developers are responding with ambitious projects across major cities. Gurugram and Noida have seen substantial increases in new luxury unit launches, while Bengaluru’s premium segment is also expanding.

Goa, as a second-home destination, is experiencing a surge in villa prices due to remote work trends and attractive rental yields, and this was corroborated by DLF, India’s largest real estate making its entry this year in Goa with its first villa-based project in North Goa expected to start from 50 crores for each villa.

As the luxury housing market continues to grow, it signifies a lasting shift in the aspirations and lifestyles of India’s affluent, setting new benchmarks for opulence and exclusivity in urban living.