Luxury can loosely be defined to mean anything that brings about great comfort, beyond necessity. Luxurious living is often associated with an abundance of beautiful things and experiences made available to a small group of people. The luxury residential market in India is booming. According to a study by Mordor Intelligence, luxury housing grew from a 7 percent overall market share in 2019 to 21 percent in 2024. An increase in disposable income, rapid urbanization and a rise in hybrid working are some of the key factors driving this growth.

There is no official definition or set of parameters by which a residential project can be termed as ‘luxury’ in India. Some research houses define luxury based on size and amenities provided, while others give more weightage to the market value and surrounding infrastructure. Generally speaking most define a residential development as luxurious when it offers more than the basics, in terms of spaces, interiors and amenities. However, this definition can be limiting to say the least.

Where you live is not just about the size of your flat, the apartment interiors or the amenities your building has. Your quality of life is determined by a combination of several factors that extend beyond the four walls of your home and the boundary walls of your complex. A spacious apartment in a well-maintained building is desirable, but if that building is located in an area that is polluted, overcrowded and poorly connected, its appeal drops instantly. Therefore, the location of any project, luxury or otherwise, always becomes the cornerstone of its overall appeal.

Most of us can point out the good or rather affluent neighborhoods we are familiar with in a city. These micro localities have a few things in common such as wide roads, planned development, well maintained public amenities, open green spaces, good connectivity and a healthy mix of residential and retail spaces. Over time these areas have gentrified well to contain a homogenous mix of residents that share common values in terms of general upkeep, sanitation, law and order, etc. which in turn has created a robust social infrastructure such of schools, hospitals, and restaurants.

Today several luxury developments in metro cities such as Mumbai are coming up in micro localities that are less than ideal. These areas are either underdeveloped or contain an odd mix of people and establishments that do not create a harmonious environment for its residents. To address the issue, builders try to create a luxury oasis of sorts; an extravagant experience tightly contained in a small parcel of land. These mini townships offer everything from gyms, swimming pools and tennis courts to restaurants, mini theatres and even guest houses. While the intention is to make up for the lack of surroundings, it can create a very isolated living experience. In my opinion, a building or a complex can hardly be termed as ‘luxury’ if a resident cannot take their dog for a walk or have a teenager cycle outside the gates of the community with ease and safety.

Luxury living can be best described as having a spacious home in a large neighborhood where the gentry, infrastructure and development are all in sync. Luxury is not just an opulence of measurable services but rather an overall ecosystem that is created in a secure environment with a homogenous mix of people and more than adequate infrastructure. Think of the Upper East Side in New York, Kensington in London or Saint-Germain in Paris. Closer to home, localities such as Sadashiva Nagar in Bengaluru, Malabar Hill in Mumbai or Lutyens in Delhi are highly coveted because of the high quality of life it offers its residents.

When development takes place in a piecemeal fashion it usually throws up complexities that cannot be easily anticipated. Whenever there is an unusual mix of people living in very close proximity on account of new luxury developments cropping up as part of rehabilitation and redevelopment initiatives, the new and old tenants tend to differ greatly. This often results in varied outlooks, different infrastructural needs and clashing social practices that have the potential to disrupt everyday life. Therefore, the long-term appeal of luxury projects in such micro localities is debatable.

Projects in affluent and well-developed localities that provide world-class amenities, spacious flats and superior interiors are most desirable and will always command a premium. When land is in short supply in such areas, builders must improvise. Ambitious township projects such as Hiranandani Gardens in Powai, Mumbai have seen success in the past on account of occupying a larger parcel of land. When planned development takes place, albeit in stages, over at least a square kilometer of land it becomes easier to control the environment and therefore has a better chance of developing into a coveted neighborhood.