Luxury Real Estate Sector in India–The Next Big Trends

India’s luxury real estate sector is witnessing an unprecedented surge, setting new benchmarks in both demand and value. With record-breaking sales in 2024, the segment is poised to be one of the key growth drivers in 2025.

According to a CBRE report, luxury housing sales jumped significantly from 12,895 units in 2023 to 19,700 units in 2024, underscoring the strong appetite for high-end residences.

Several factors are fuelling this upward trend—steady price appreciation, rapid urbanization, and the growing demand for premium amenities. Homebuyers today seek not just opulence but also bespoke experiences, state-of-the-art technology, and strategic locations that offer exclusivity and convenience.

HNIs & NRIs: The Power Buyers of Luxury Real Estate

India’s luxury real estate market is experiencing an unprecedented boom, driven by strong demand from High-Net-Worth Individuals (HNIs), Ultra-High-Net-Worth Individuals (UHNIs), and Non-Resident Indians (NRIs).

In the first nine months of 2024 alone, the top seven cities recorded sales of nearly 230,000 units worth ₹3.8 lakh crore. With a significant share of affluent buyers planning further investments over the next 1-2 years, confidence in the sector remains strong, reinforcing its resilience and long-term growth potential.

Luxury living today extends beyond opulence—it is now defined by functionality, sustainability, and innovation. Indian developers are responding to this evolution by reimagining spaces that seamlessly blend aesthetics with purpose, aligning with the expectations of the modern buyer.

Additionally, low interest rates, increased global exposure, flexible payment options, and cutting-edge designs are making luxury homes more accessible to India’s aspiring middle class. As demand for premium living continues to grow, the luxury real estate segment is poised for sustained expansion.

Green Technology – The New Essential in Luxury Living

Sustainability is no longer just a preference; it’s an expectation. Today’s luxury homebuyers seek residences that integrate advanced green building materials, biophilic designs, and energy-efficient features like solar panels and rainwater harvesting.

These innovations not only minimize carbon footprints but also enhance long-term property value. By 2025, India’s green buildings market is projected to reach $39 billion, reflecting a significant shift towards sustainable construction as a core aspect of modern real estate development.

Smart Technology – The Future of Luxury Living

Luxury real estate is no longer defined by aesthetics alone—technological innovation is now at the forefront. Voice-controlled systems, automated lighting, and integrated home management solutions are becoming essential features for exclusivity-seeking buyers.

In today’s hyper-connected world, advanced security and smart home technologies are crucial for ensuring privacy and safety.

With India’s smart home market currently valued at ₹90,000 crore and projected to surpass ₹140,000 crore by 2028, the integration of cutting-edge technology in high-end homes is set to redefine modern luxury, offering unparalleled comfort, convenience, and security.

Integrating Wellness into Luxury Living

As luxury real estate evolves, wellness amenities are becoming a cornerstone of premium living. Today’s high-net-worth buyers seek more than just opulence—they prioritize holistic well-being.

Developers are responding by integrating state-of-the-art fitness centers, dedicated yoga and meditation spaces, and thoughtfully designed indoor-outdoor wellness zones that promote both physical and mental well-being.

By seamlessly blending wellness with luxury, India’s real estate sector is redefining modern living, offering a lifestyle that fosters health, balance, and long-term well-being.

Branded Residences & Mixed-Use Marvels

India’s luxury real estate landscape is set for a transformation with the rise of mixed-use developments. These integrated spaces offer the perfect blend of exclusivity, convenience, and lifestyle amenities, catering to the evolving preferences of high-end buyers.

With expansive layouts, premium retail, office spaces, and modern facilities, mixed-use projects are redefining luxury living while promoting walkability and sustainable urban planning.

Similarly, the demand for branded residences is on the rise, particularly among HNIs and NRIs. These properties often priced 25-30% higher than their conventional counterparts, offer premium positioning, superior amenities, and strong investment potential, ensuring better appreciation and rental yields. As luxury buyers seek curated experiences, this segment is set to thrive.

Infrastructure Development: A Catalyst for Luxury Real Estate Growth

India’s luxury real estate market is set to accelerate, driven by rapid urbanization and large-scale infrastructure projects. With ₹11.1 lakh crore allocated in the Interim Budget 2024-25—and an expected increase in the Union Budget 2025-26—improved connectivity, metro expansions, and smart city initiatives are significantly boosting property values across both Tier-I and Tier-II cities.

Bengaluru has emerged as a prime luxury housing hotspot, thanks to its well-developed infrastructure, thriving neighbourhoods, and strong capital appreciation.

Luxury home sales priced above ₹1.5 crore in the city surged by 142% in the first nine months of 2024, with a record 9,220 units sold—more than double the 3,810 sold in the same period of 2022.

North Bengaluru, in particular, is attracting attention with key growth corridors like Devanahalli, Doddaballapur, and Chikkaballapur.

Enhanced connectivity, smart city projects, and increasing urban migration are driving demand, with 39.7% of NRIs favouring investments in this region. As infrastructure developments continue, the luxury housing sector is poised for sustained expansion.

The Road Ahead for India’s Luxury Real Estate

As India’s luxury real estate market evolves, developers must master the delicate balance between tradition, innovation, and sustainability.

Staying ahead will require a keen understanding of shifting consumer aspirations and a commitment to delivering curated exclusivity, cutting-edge technology, and eco-conscious design.

Looking ahead, luxury housing is no longer just about opulence—it’s a strategic investment in lifestyle, prestige, and long-term value. With robust economic drivers and surging demand for premium living, 2025 is poised to be a defining year for India’s high-end residential sector.

For both developers and buyers, this is a moment to shape the future of luxury living—one that blends sophistication with sustainability, setting new benchmarks for excellence.

– – Authored by Srinivasan Gopalan, CEO, ArisInfra Solutions Ltd