Driven by shifting buyer preferences post the pandemic and a surge in interest from NRIs, the demand for luxury housing is soaring like never before. However, which of India’s top cities – including Delhi-NCR, Mumbai, and Hyderabad – has witnessed the most significant growth in premium homes?
The findings of CBRE South Asia Pvt Ltd’s latest report – ‘India Market Monitor Q4 2024 – Residential’ — highlight that Delhi-NCR, Mumbai, and Hyderabad have emerged as the key markets, collectively contributing over ~90% of the luxury housing unit sales across the top seven cities in 2024.
As per the report, India’s luxury housing segment (units priced at Rs 4 crore and above) recorded a ~53% Y-o-Y sales growth in CY 2024 across the top seven cities. The segment also recorded significant unit launches, registering ~52% Y-o-Y growth during the year.
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In CY 2024, total luxury housing sales touched ~19,700 units, recording ~53% Y-o-Y growth. Delhi-NCR led the market, reflecting a strong 90% Y-o-Y growth, followed by Mumbai, recording a 32% Y-o-Y increase. Moreover, Pune witnessed significant demand in the luxury housing segment, recording ~825 units sales in 2024.
The number of new launches in 2024 in the luxury segment reached ~24,180, recording a ~52% Y-o-Y increase. In line with the trajectory of luxury housing unit sales, Delhi-NCR led the new launches, followed by Mumbai and Hyderabad. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023.
The rising demand for luxury housing is largely driven by a growing number of affluent buyers seeking spacious homes with premium amenities that cater to their multifaceted lifestyles. Furthermore, this demand has been bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.
A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast.
India’s overall residential market performance in CY 2024
India’s residential real estate market demonstrated positive activity throughout CY 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This momentum pushed annual sales to surpass ~300,000 housing units for the second year in a row. To meet the rising demand, developers launched over ~280,000 new residential units during the year. Mid-segment projects dominated sales with a 40% share, followed by high-end and affordable segments. Together, Mumbai, Pune, and Bengaluru accounted for ~64% of the total sales in 2024, underscoring their significance in the residential market.
During the Oct-Dec’24 quarter, ~75,300 sales of housing units was recorded, while the number of new launches during the same period stood at ~67,800 units. In 2024, Mumbai, Pune, and Hyderabad collectively accounted for ~63% of the total unit launches. During Oct-Dec’24, Mumbai, Pune, and Delhi-NCR cumulatively contributed ~66% to the overall sales. Additionally, unit launches in Oct-Dec’24 saw Mumbai, Pune, and Bengaluru capturing a combined share of ~60%.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The residential real estate market is driven by strong fundamentals underpinned by robust end-user demand. We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market. However, with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence.”
Commenting on the CBRE report, Manish Jaiswal, Group COO, Eldeco Group, said, “Delhi-NCR continues to lead as a prominent hub for luxury housing in India, driven by its robust infrastructure, proximity to business centers, and increasing demand for premium living spaces. The surge in luxury home sales reflects the region’s evolving aspirations and the growing inclination of buyers toward properties offering world-class amenities and unparalleled convenience. This trend not only reinforces Delhi-NCR’s position as a luxury destination but also signals sustained growth in the high-end real estate segment. At Eldeco Group, we recognize this dynamic shift and are committed to crafting homes that blend elegance with functionality, meeting the sophisticated needs of our discerning clientele.”
Ashish Agarwal, Director, AU Real Estate, said, “The luxury housing market in Delhi-NCR has seen remarkable growth in 2024, positioning it as a leading destination for affluent buyers. The demand for high-end properties has surged, with a staggering 44% increase in sales of luxury homes priced above Rs 4 crore. This surge is attributed to the NCR’s robust infrastructure and proximity to key business hubs, making it an attractive choice for those seeking modern living spaces. As luxury residences become increasingly sought-after, Delhi-NCR is set to redefine urban opulence, appealing to buyers looking for exclusive and upscale lifestyles. The trend indicates that the city’s luxury real estate market will continue to flourish well into 2025 and beyond.”
Rajat Khandelwal, Group CEO of Tribeca Developers, said, “Over the past four years, the luxury segment has seen nearly 50% year-on-year growth, fueled by UHNIs, senior corporate executives and startup founders seeking thoughtfully-designed spacious residences that blend lifestyle-enhancing features such as advanced home automation, superior security, and world-class amenities with the prestige of an iconic address. For India’s UHNIs, luxury real estate is no longer just a home but a strategic investment in multigenerational wealth and legacy creation. This thought got cemented from the historical data which confirms that luxury housing has given much better returns over premium or affordable alternates. With Mumbai and Gurugram accounting for 84% of all ultra-luxury transactions in 2024, Tribeca is excited to expand its Trump super-luxury portfolio across major Indian cities in 2025, setting new benchmarks for opulence and exclusivity.”