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In 2024, India's luxury real estate market thrived due to a strong economy, stable interest rates, and rising wealth among HNIs and UHNIs. Cities like Mumbai, Delhi, Gurugram, and Bengaluru witnessed record-breaking sales and high-profile property deals. Demand for homes priced from INR 10 crore to INR 80 crore soared, driven by factors like lifestyle upgrades, exclusivity, and capital appreciation. Developers focused on premium amenities and prime locations to cater to affluent buyers. With the market shifting towards gated communities and modern apartments, the luxury segment emerged as a symbol of status. As optimism about the economy and wealth grows, luxury real estate remains a lucrative and stable investment.
The year 2024 has been a standout for India's luxury real estate market. Thanks to a strong economy and stable interest rates, the sector has shown remarkable growth, with major cities recording high sales and launches. Even though demand has levelled off slightly in the latter half of the year, the strong performance earlier on has ensured impressive results. Housing prices across the top eight cities have risen by 16% this year, with the luxury and ultra-luxury segment seeing even greater momentum. Advertisement
The luxury housing segment that includes units priced at INR 4 crore and above saw sales increasing by almost 37.8% Y-o-Y during the Jan-Sep 2024 period on the back of high demand, CBRE South Asia Pvt Ltd said in its report titled India Market Monitor Q3 2024 – Residential.
Homes priced between INR 10 crore and INR 80 crore have become popular as wealthy buyers look for spacious properties that suit their lifestyle and investment plans. “Luxury housing has experienced a boom, with record-breaking sales driven by a strong stock market performance and increased consumer confidence. As wealth grows, demand for premium living spaces has also increased,” said Navin Makhija of The Wadhwa Group.
Demand for high-end homes has surged in cities like Mumbai, Gurugram, and Delhi. Many wealthy buyers are acting quickly to secure premium properties as supply struggles to keep up. In Delhi, for instance, affluent buyers are moving away from traditional bungalows in favour of modern housing communities that offer amenities like dedicated parking, which is a significant challenge in urban areas. Beyond amenities, these gated communities also provide opportunities to network and socialise with prominent members of society. The club house becomes a platform to transact business deals while playing poker or sanction investments in the salon while getting a pedicure.
This year has seen remarkable property deals, such as Ajit Isaac’s purchase of a 10,000 sq. ft. plot in Bengaluru for INR 67.5 crore. In Noida, a developer offered a Lamborghini with a villa purchase worth INR 26 crore, highlighting the creative strategies being used to attract luxury buyers. “The luxury housing segment is expanding as high-net-worth individuals seek homes that suit their lifestyle and provide advanced security, home automation, and premium amenities. Developers are focused on superior craftsmanship, prime locations, and sustainability to attract this luxury market,” said Ashish Kukreja of Homesfy.in and Mymagnet.io.
Mumbai remains a leader in the luxury real estate market, accounting for 84% of all ultra-luxury deals across major cities in 2024. Out of 25 ultra-luxury homes (homes priced more than INR 40 crore) sold this year, 21 transactions in Mumbai were collectively worth INR 2,200 crore. Other cities like Hyderabad, Gurugram, and Bengaluru also reported significant deals, with DLF’s ultra-luxury projects on Golf Course Road in Gurugram being the best example. At least two separate ultra-luxury home deals collectively worth INR 80 crore were closed in Hyderabad’s Jubilee Hills, while Bengaluru also closed one deal worth INR 67.5 crore
Second Home destinations like Goa and Alibaug are experiencing booming demand with marquee villa properties selling like hot cakes. “The unique appeal of areas like Alibaug and Lonavala, complete with picturesque views, natural landscapes, and proximity to Mumbai, has made them a coveted choice for luxury investments,” said Vikas Sutaria of Iraah Lifespaces.
There are several factors driving the luxury market. The number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) has risen significantly, with the 2024 Hurun Rich List recording 1,539 people with a net worth of INR 1,000 crore or more. According to India Sotheby’s International Realty, 44% of HNIs and UHNIs see luxury properties as a way to grow their wealth through capital appreciation. High-end homes also offer exclusivity, top-tier amenities, and social prestige, making them highly attractive. With 79% of HNIs and UHNIs optimistic about India’s economy, luxury real estate is viewed as a stable and secure investment.
“Strategic investments in luxury real estate are seen by India’s UHNIs as a tool for multi-generational wealth and legacy creation,” said Amit Goyal, MD of India Sotheby’s Realty. He added that luxury homes also act as a hedge against inflation while offering lifestyle upgrades.
The Indian real estate sector is undergoing a paradigm shift, driven by rapid urbanisation, technological advancements, and evolving buyer preferences. With a projected market size of USD 1 trillion by 2030, this industry is poised to contribute 18–20% to the nation’s GDP, making it a key player in India’s economic growth.
India's real estate sector is on a transformative journey," says Mr. Samudragupta Talukdar, Founder & CEO, Relata. "With technologies like VR, AI, and smart home innovations, the market is evolving to meet the needs of millennial buyers who value convenience. The sector’s projected growth to USD 1 trillion by 2030 highlights its critical role in India’s economy. As Tier 2 and Tier 3 cities emerge as key growth areas, the future of Indian real estate looks brighter and more tech-driven than ever."
According to a recent report titled HSBC’s Global Entrepreneurial Wealth Report 2024 that provides an insight into the attitudes of wealthy business owners around the world, including the investing habits of India’s HNI’s and UHNI business owners, almost six out of ten (61%) Indian wealthy business owners allocate personal wealth to real estate for their own use compared to one in two globally (51%). This is reflected in the buyers profile as well. At least 80% of the total deals were concluded by businessmen, and 12% by senior professionals from across various sectors. Bollywood celebrities and leading legal and medical professionals accounted for the remaining 8%. Experts said that several buyers are booking profits from the share market and investing in real estate, most of them for self use.
Anshuman Magazine, Chairman and CEO of CBRE South Asia, highlighted the growing interest in luxury homes even in traditionally mid-range markets like Noida, Bengaluru, Pune, and Chennai. “India's luxury housing market is witnessing significant growth, reflected in an increase in sales. As the market shifts from bungalows to modern apartments and penthouses, the premiumisation of amenities will be a key differentiator in luxury projects,” he said.
Leading developers like DLF, Oberoi, Lodha, Prestige, and Embassy are heavily investing in this segment. Even developers who traditionally focused on mid-range housing are now launching luxury projects to tap into this lucrative market. As developers adapted to the preferences of a wealthier clientele, the market not only expanded but set new benchmarks for quality and exclusivity.
As 2024 draws to a close, it’s evident that India’s luxury real estate market has enjoyed a remarkable year. Rising demand, innovative offerings, and record-breaking transactions have positioned the segment as a key player in the country’s economic narrative. From Mumbai’s dominance to emerging luxury hubs in Noida and Bengaluru, the market has responded dynamically to the needs of high-net-worth individuals. With strong economic confidence and an expanding base of affluent buyers, the luxury real estate sector is set to continue its upward trajectory, offering a blend of exclusivity, investment potential, and lifestyle appeal in 2025.
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