Luxury housing boom: Delhi-NCR drives growth in India’s premium real estate

India’s luxury housing segment, which comprises units priced at Rs 4 crore and above, recorded a 53% year-on-year sales growth in CY 2024 across the top seven cities, with Delhi-NCR recording the sale highest launches as well as sales.

In CY 2024, total luxury housing sales touched 19,700 units, a 53% Y-o-Y growth. Delhi-NCR, Mumbai, and Hyderabad emerged as the key markets, collectively contributing over 90% of the luxury housing unit sales across the top seven cities, the latest data by real estate consultancy CBRE shows.

Delhi-NCR led the market, reflecting a 90% Y-o-Y growth, followed by Mumbai, which recorded a 32% Y-o-Y increase. Pune also saw significant demand in the luxury housing segment, with 825 units sold in 2024.

The segment also recorded significant unit launches, registering 52% Y-o-Y growth during the year at 24,180. In line with the trajectory of luxury housing unit sales, Delhi-NCR topped the chart in new launches, followed by Mumbai and Hyderabad. Additionally, Chennai observed a substantial uptick in new luxury unit launches in 2024 compared to 2023.

On Delhi-NCR's overall performance in CY2024, Manish Jaiswal, Group COO, Eldeco Group says the region continues to lead as a prominent hub for luxury housing in India, driven by its robust infrastructure, proximity to business centers, and increasing demand for premium living spaces. "The surge in luxury home sales reflects the region's evolving aspirations and the growing inclination of buyers toward properties offering world-class amenities and unparalleled convenience. At Eldeco Group, we recognise this dynamic shift and are committed to crafting homes that blend elegance with functionality, meeting the sophisticated needs of our discerning clientele. This trend not only reinforces Delhi NCR’s position as a luxury destination but also signals sustained growth in the high-end real estate segment."

The experts attribute the rising demand for luxury housing to a growing number of affluent buyers seeking spacious homes, with premium amenities that cater to their multifaceted lifestyles. Furthermore, the demand is also being bolstered by the aspirations of an expanding upper-middle class, alongside a surge in interest from NRIs, who view Indian real estate as a lucrative opportunity.

A significant factor in this trend is the shift in buyer preferences towards luxury properties introduced by leading developers, with tier-I developers dominating the market. “As these expectations continue to shape the luxury housing market, the premiumisation of offerings is expected to remain steadfast,” says CBRE.

Residential Market Shines in CY 2024

India's residential real estate market saw annual sales surpass 300,000 housing units for the second year in a row in CY2024. To meet the rising demand, developers launched over 280,000 new residential units during the year, with mid-segment projects dominating sales with a 40% share, followed by high-end and affordable segments. Key markets like Mumbai, Pune, and Bengaluru collectively accounted for 64% of the total sales in 2024, underscoring their significance in the residential market.

During the Oct-Dec’24 quarter, 75,300 sales of housing units were recorded, while the number of new launches during the same period stood at 67,800 units.

"The residential real estate market is driven by strong fundamentals underpinned by robust end-user demand. We expect this momentum to continue, with both sales and new housing unit launches to remain steady in the coming quarters. Furthermore, cities traditionally associated with mid-end developments, such as Noida, Bengaluru, Pune, and Chennai, are increasingly witnessing a shift towards high-end projects, marking an exciting evolution in the residential market,” says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

Magazine has cautioned that with high capital values and ongoing global economic uncertainty, homebuyers may adopt a cautious approach in their purchasing decisions and perform all standard property due diligence.

Going forward, the strong demand in the residential market is expected to keep both sales and new launches steady. CBRE, however, cautions that given the elevated capital values and an uncertain global economic landscape, homebuyers may start adopting a wait-and-watch approach to purchasing decisions. “The gradual shift towards high-end offerings suggests India’s premium and luxury housing markets are expected to remain elevated in the coming years.”