The FORWARD MOMENTUM in LUXURY real-estate

The demand for luxury housing in India has surged significantly, driven by several factors. Affluent buyers are increasingly seeking opulent residences with enhanced amenities and spacious layouts to accommodate their diverse lifestyles. Additionally, the growing aspirational class has fuelled demand for luxury properties. Moreover, Non-Resident Indians (NRIs) and domestic investors have significantly contributed to the heightened demand for high-end residences. This trend aligns with the evolving preferences of contemporary homebuyers, who prioritize developer reputation, execution capability, and financial stability.

This forward momentum is evident from the sales of luxury housing units, which witnessed a significant 38% year-over-year surge during the first nine months of 2024. In terms of high-performing cities and regions, Delhi-NCR, Mumbai, and Hyderabad were the leading markets, collectively accounting for nearly 90% of total luxury sales across the top seven cities. Pune emerged as a significant contributor, with a notable increase in luxury sales.

The hospitality sector is also reshaping the luxury market significantly. The burgeoning population of ultra-high-net-worth-individuals (UHNIs) and high-net-worth-individuals (HNIs) in India presents a compelling opportunity for luxury hotel chains to expand their branded residence portfolio. This aligns with a growing domestic demand for residences that mirror the world-class amenities and personalized services characteristic of luxury hotels. The wealthy clientele, having travelled extensively and grown to appreciate a brand's style, offerings, and comforts, is seeking similar luxury residential experiences. Various renowned hospitality brands have already entered the market of branded residences, while developers are preparing to take advantage of the enormous potential by forming strategic alliances.

Overall, the Indian luxury real estate market is poised to experience robust growth, driven by increasing affluence, changing lifestyles, and strong investor interest. The momentum will aggressively expand beyond major metros and is expected to script a strong growth story in Tier-I and Tier-II markets, driven by fast-paced infrastructural developments, availability of large land parcels, improved connectivity, and availability of all necessary amenities.