Despite a sharp surge in property prices the demand for luxury housing remained strong in 2024. The segment resisted economic slowdown, as the HNIs and UHNIs did not shy away from buying big-ticket luxury properties. This growing affinity of India’s middle and upper-class buyers towards luxury projects puts forward a bigger picture. This premiumization trend reflects a deeper desire for homes that embody status, comfort, and an elevated lifestyle.

As reflected in Knight Frank’s data, the sales of apartments priced between Rs 2 crore and Rs 5 crore have skyrocketed by 400% from 2019 to 2024, with an 82% increase in 2024 alone. Properties in the Rs 1–10 crore bracket have shown the most notable growth, registering a 46% year-on-year increase and a staggering 500% rise since 2019. Meanwhile, the ultra-luxury segment—homes priced above Rs 20 crore—has also seen impressive traction, with sales surging 270% over the same period. This surge is particularly evident in key metropolitan markets such as Mumbai, Delhi-NCR, Bengaluru, Pune, and Hyderabad.

Another report by Anarock showed that the demand for super luxury homes, each price above Rs 40 crore, hit an all-time high in 2024 with sales of 59 units for Rs 4,754 crore across the top seven primary and secondary housing markets. Of at least 59 ultra-luxury properties sold, Mumbai saw 52 units sold at price tags of over INR 40 crore each, followed by three in Delhi-NCR. Both Bengaluru and Hyderabad saw two deals each. The surge in luxury housing in India is driven by rising disposable incomes, an expanding base of HNIs, and evolving homebuyer preferences. As professionals and entrepreneurs experience significant wealth creation, there’s a growing appetite for premium homes that reflect their success and provide an elevated lifestyle.

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Highlighting the surge in the demand for luxury properties in Gurugram, Sandeep Chhillar, Founder and Chairman, Landmark Group, says, “Gurugram has been seeing a shift towards high-end living, driven by world-class infrastructure, seamless connectivity, and evolving lifestyle aspirations. The city’s strategic location, proximity to business hubs, and premium social amenities have made it a magnet for luxury homebuyers and investors. Micro-markets like Dwarka Expressway, SPR, and sectors in New Gurgaon have emerged as preferred destinations for luxury living in Gurugram. We believe this surge isn’t just driven by local demand, but NRIs and global investors recognizing Gurugram’s potential for long-term appreciation and quality of life.”

Moreover, post-pandemic there has been a shift in how people view their living spaces. With remote work becoming more prevalent and health and wellness taking center stage, buyers now prioritize comfort, space, and well-being in their homes. The demand for larger homes with dedicated workspaces, private outdoor areas, and wellness features like air purification and green spaces has surged, further pushing buyers toward the luxury segment.

Sharing his perspective on Bengaluru’s housing market, Ashwinder R Singh, Vice-Chairman & CEO of BCD Group and Co-Chair of the CII Real Estate Committee, says, “Bengaluru’s tech-driven growth and cosmopolitan character have elevated demand for luxury homes. Affluent buyers are seeking modern designs, smart features, and sustainable living. With a balance of green spaces and advancing infrastructure, the city’s premium real estate segment is poised for sustained growth.”

Additionally, the proactive measures announced in the Union Budget 2025 strengthened the housing market by making annual incomes up to Rs 12 lakh tax-free, significantly boosting disposable incomes, particularly among the middle class. This increased financial flexibility is expected to benefit first-time homebuyers and encourage aspirational buyers to explore luxury housing options. Further, India’s strong GDP growth, controlled inflation, and favorable interest rates have created a stable and attractive environment for real estate investments. Together, these economic catalysts are driving the premiumization trend, making luxury homes more accessible to a broader segment of buyers.

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Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group, says, “With stable economic growth and favorable interest rates, the luxury housing market continues to gain momentum. Discerning buyers are now more confident investing in high-end properties that complement their evolving lifestyle aspirations. The market is responding with a well-balanced supply of thoughtfully-designed luxury homes that seamlessly integrate modern amenities with timeless elegance. Additionally, the new tax regime introduced in the budget, which exempts annual incomes up to Rs 12 lakh from taxation, has significantly uplifted market sentiment. This policy shift is enabling aspirational middle and upper-middle-class buyers to explore premium housing options that were previously beyond one’s reach.”

Prateek Tiwari, MD, Prateek Group, says, “The luxury housing market in NCR is flourishing due to rising aspirations and strategic development. Cities like Noida and Ghaziabad are emerging as key hubs resonating with affluent buyers seeking luxury homes in prime locations. The area’s improved connectivity through expressways and metro networks adds to the appeal. With buyers’ evolving preferences towards sophisticated living spaces, micro-markets like Siddharth Vihar in Ghaziabad will emerge as a new luxury hub in NCR. The region is already mushrooming with significant development of premium luxury properties crafted to offer comfort and symbolize status and lifestyle aspirations.”

Thus, the premiumization trend in India’s real estate sector is more than just a fleeting phenomenon; it represents a fundamental shift in buyer preferences towards aspirational, lifestyle-driven living. Looking ahead, the luxury housing market is set to continue its upward trajectory, fueled by the rise of new micro-markets, infrastructural developments, and a growing appetite for sophisticated living.