The luxury housing market in India is experiencing a significant surge, fueled by an increasing preference for exclusivity, enhanced lifestyles, and premium living spaces. Despite global economic uncertainties, the demand for high-end properties in India remains strong, reflecting the confidence of affluent buyers in the enduring value of luxury real estate.

Data from CREDAI-MCHI reveals an 18% increase in total sales value across India's top seven property markets, amounting to INR 279,309 crore in the first half of FY 2024-25. Interestingly, this growth has occurred despite a 3% decline in the number of units sold, signaling a shift in buyer preference towards high-end homes. The average price per home has risen significantly to INR 1.23 crore, compared to INR 1 crore during the same period last year.

Cities such as Mumbai, Delhi-NCR, and Bengaluru lead this trend. The Mumbai Metropolitan Region (MMR) continues to dominate premium property sales, with an average ticket size of INR 1.47 crore and a 2% increase in sales value to INR 114,529 crore. Delhi-NCR and Bengaluru follow closely, while cities like Hyderabad, Chennai, Pune, and Kolkata have also recorded notable growth in average ticket sizes, reflecting the nationwide appeal of luxury housing.

The growing demand for luxury housing goes beyond mere property purchases; it embodies the aspirations of homebuyers seeking to elevate their lifestyles. According to the India Market Monitor Q3 2024 - Residential report by CBRE South Asia Pvt. Ltd., sales of luxury homes priced above INR 4 crore increased by 37.8% year-on-year during January-September 2024. Among the top performers, Delhi-NCR led with approximately 5,855 units sold, marking a 72% year-on-year growth, while Mumbai recorded sales of around 3,820 units, representing an 18% year-on-year increase.

Mr. Nishant Deshmukh, Founder and Managing Partner of Sugee Group,said that "The luxury housing market in India is evolving beyond just offering homes; it's about curating an unparalleled lifestyle that resonates with the aspirations of discerning buyers. The steady rise in demand for luxury housing underscores the growing preference for quality, exclusivity, and convenience among homeowners. This trend not only reflects an upward trajectory in buyer aspirations but also a robust confidence in premium real estate as a valuable and long-term investment. At Sugee Group, we recognize this shift and are committed to blending modern architectural excellence with thoughtful amenities to craft bespoke living experiences through our premium developments such as Sugee Sea Krest and Marina Bay in Worli, in South Mumbai. We aim to create spaces that resonate with the evolving preferences of our clientele, delivering not just homes but experiences that epitomize sophistication and style."

Developers are responding to this shift in buyer preferences by launching unique high-end projects. According to Anarock, there has been a noticeable rise in demand for holiday homes, farmhouses, and villas, especially among buyers seeking spacious properties for remote work setups and long-term investments. Approximately 25% of luxury buyers are investing in holiday homes, while 20% prefer farmhouses.

Speaking on this trend, Mr. Vikas Sutaria, Founder of Iraah Lifespaces, said, "We believe luxury is not just owning a premium property but about curating an experience that elevates one's lifestyle. The growing demand in India's luxury housing market reflects a shift in consumer aspirations, with homebuyers seeking more than just a home. They are seeking an integrated lifestyle that blends comfort, sophistication, and exclusivity. As premium realty players, it's our responsibility to offer not just beautiful designs, but spaces that embody tranquility, well-being, and status. Our recently launched collection of bespoke ultra-luxury villas in Alibaug and Lonavala caters to this evolving mindset, offering unparalleled craftsmanship and a distinctive living experience."

A report by Anarock reveals that of the 25 ultra-luxury properties sold in India's top cities in 2024, Mumbai accounted for 21 units collectively worth INR 2,200 crore, capturing 84% of the total sales in this segment. Looking ahead, the luxury housing market is set for continued growth, driven by demand from NRIs, HNIs, and affluent domestic buyers. Developers are innovating to meet and exceed buyer expectations.

Mr. Anil Mutha, Chief Visionary and Co-Founder of Nandivardhan Group, stated that "The rise in luxury housing in South Mumbai signifies a transformation in buyer aspirations, where opulence seamlessly blends with heritage and modernity. Our latest offering in Dadar, South Central Mumbai is set to redefine family living by combining contemporary design with the timeless charm of the area's iconic architecture. With cutting-edge amenities and a strong focus on sustainability, we cater to the discerning tastes of today's elite residents. As the real estate market continues to evolve, our homes reflect the aspirations of those who seek a lifestyle of luxury, comfort, and connection to the city's rich cultural legacy."

Mr. Umesh Jandial, Chief Business Officer at Omkar Realtors & Developers, remarked, "The growing demand for luxury homes reflects a significant transformation in consumer behavior, driven by a preference for quality and exclusivity. This surge in interest highlights how homebuyers today are willing to invest in homes that redefine living experiences, offering bespoke amenities and a sense of community. In a competitive market like Mumbai, we have always stood for delivering exceptional value through our premium offerings such as Omkar Alta Monte at Malad."

Mr. Vedanshu Kedia, Director at Prescon Group, added, "Luxury housing in India is no longer confined to the idea of owning a premium property; it is a gateway to an elevated lifestyle. We see a strong and consistent demand for high-quality homes that blend modern design with functionality and exclusivity. With a focus on location, innovative design, and world-class amenities, we aim to redefine urban living while ensuring enduring value for buyers through our luxury projects. Our flagship projects in Mumbai and Goa embody this ethos, creating spaces that resonate with the aspirations of the modern homebuyer,"

The luxury housing segment in India continues to evolve, redefining benchmarks in real estate while offering a lucrative and aspirational investment avenue. It is no longer just about homes-it's about crafting lifestyles, experiences, and legacies.

In conclusion, the luxury housing segment is reshaping real estate in India, focusing on lifestyle and experiences, and indicating a robust future driven by affluent buyers' aspirations.