Luxury Realty in India: The Preferred Choice for Buyers, Builders, and Investors

The last decade witnessed India emerging as the fastest-growing economy in the world, with leading institutions referring to the country as the ‘bright spot’ in an otherwise globally gloomy economic scenario. This has been largely attributed to India’s rise as a technology and services hub, with new growth in the manufacturing sector. The country’s fundamentals are getting stronger with the implementation of GST and the digital stack, which has brought in the development of the economy, leading to a rapid increase in the number of HNIs and millionaires over the last decade. The ripple effect of this is being directly seen in India’s luxury realty market, which has witnessed significant growth and transformation in recent years, making it the preferred choice for buyers, builders, and investors alike.

With the runaway success of highly premium properties in India, luxury realty goes beyond providing mere living space to offering a complete lifestyle experience. Many luxury projects incorporate features like private clubs, landscaped gardens, rooftop infinity pools, and personalised services to create a unique and exclusive ambience. Such offerings cater to discerning buyers who seek not just a home but an elevated way of life. This is bringing significant global exposure and collaboration with international brands, with leading luxury hotel chains, fashion designers, and lifestyle brands having ventured into the real estate sector to create integrated luxury developments. These collaborations bring a touch of international luxury and raise the overall standards of luxury real estate in India.

Reports show that India’s luxury housing sales rose throughout 2023 – a testament to the huge underlying demand for luxury properties. The genesis of this trend stems from the significant increase in purchasing power coupled with the rapid rise of luxury properties and the acceleration provided by the COVID-19-induced pandemic, leading homebuyers to opt for larger properties. This has led to the luxury realty sector evolving from traditional housing to high-end developments, offering a luxurious lifestyle and world-class amenities. This, coupled with rapid urbanisation, has led to soaring demand for luxury real estate across major cities. Urban dwellers embrace a world-class lifestyle, and luxury properties offer various amenities to cater to their evolving needs.

The growth in demand for luxury properties remains steady, and their exclusivity often leads to appreciation in value over time. Additionally, rental yields for luxury properties tend to be higher than standard residential properties, making them an attractive investment option.

India has witnessed significant infrastructure development in recent years, with improved connectivity and urban planning initiatives. This has positively impacted luxury real estate, as well-planned road networks, metro systems, and airports make luxury properties easily accessible. The presence of high-quality infrastructure has become a key criterion for luxury buyers, attracting them to invest in well-connected areas.

Conducive policies and global development standards have also made luxury homes attractive.  The Indian government has implemented several policies to promote real estate investment, including reforms such as the Real Estate Regulatory Authority (RERA) Act and the Goods and Services Tax (GST). These measures have enhanced transparency, streamlined the buying process, and increased investor confidence in real estate, including the luxury segment. This has further boosted the sector to match international standards and showcase architectural excellence. Many renowned international architects and designers collaborate with Indian developers to create iconic projects that blend aesthetic appeal with functionality. These projects not only offer luxurious living spaces but also contribute to the overall urban landscape, adding value to the city’s skyline.

As we look at the next decade, luxury real estate is expected to witness increased demand with significant capital value appreciation. This also leads to the rise of larger apartments and villas, leading to a spike in higher ticket range projects worth Rs 2.5 crore and above. It is also expected to see traction in cities beyond metros, with many developers foraying into tier-II cities, leading to more joint ventures and joint development initiatives.

The growth of this segment reflects the evolving aspirations and preferences of the Indian population, who seek not just a home but a luxurious and fulfilling lifestyle. With continuous innovation and development, India’s luxury realty market is poised to grow further, offering even more choices and opportunities to its stakeholders.