COVER STORY/ECOSYESTEM
Luxury Housing Sees Unprecedented Boom in India's Metropolises
Wednesday, 23rd August 2023: India’s major cities are witnessing an unparalleled surge in the luxury housing segment, driven by rising disposable incomes and growing aspirations. The luxury real estate market is ablaze with new projects, many commanding prices ranging from Rs 2-3 crore to as high as Rs 12-15 crore per unit. Recent data from Anarock’s research reveals that the luxury category accounted for about 18% (approximately 65,680 units) of the total 2022 sales in the top seven cities, a remarkable jump from the 7% (around 17,740 units) recorded in 2019.
Luxury Housing Sees Unprecedented Boom in India's Metropolises
The allure of traditional bungalows has become financially out of reach for many, prompting a shift towards premium flats and high-end apartments that offer opulent living and a suite of amenities. This shift is particularly evident in cities like Ahmedabad, where luxury residential projects are captivating both local wealthy investors and the large overseas Gujarati diaspora.
The luxury housing surge is attributed to the emergence of a new class of affluent individuals fueled by expanding business models such as technology, venture capital, and startups. High Net Worth Individuals (HNIs) and Ultra-High Net Worth Individuals (UHNIs) are also driving demand, viewing real estate as a valuable long-term investment. Furthermore, increased demand from Non-Resident Indians (NRIs), along with government policies like the capital gains cap and the appeal of generational wealth through property, contribute to the booming market.
The biggest surge in demand for high-end units is witnessed in Delhi-NCR, Mumbai-MMR, Hyderabad, Pune, and Bangalore, with Mumbai-MMR and NCR accounting for more than half of the total sales.
