India Luxury Residential Real Estate Market is Expected to Register a 12.19% CAGR Through 2031

Rising Affluence & Expanding High-Net-Worth Population and Urbanization & Infrastructure Development are likely to propel the market during the forecast period.

According to TechSci Research report, “India Luxury Residential Real Estate Market – By Region, Competition, Forecast and Opportunities, 2021-2031F”, India Luxury Residential Real Estate Market was valued at USD 40.11 Billion in 2025 and is expected to reach USD 80.70 Billion by 2031 with a CAGR of 12.19% during the forecast period.

India’s luxury residential market is witnessing a tech-driven transformation with the increased adoption of smart home technologies. Affluent buyers now expect their homes to be not just beautiful and spacious but also intelligent, responsive, and digitally connected.

Smart home integration includes automation systems that control lighting, climate, security, and entertainment through mobile apps or voice commands. Features such as keyless entry, facial recognition, remote surveillance, and AI-powered appliances are becoming increasingly common in high-end homes.

This trend reflects the lifestyle of modern luxury consumers who value convenience, security, and customization. Buyers, especially tech-savvy millennials and younger HNWIs, are actively seeking homes where everything—from the lights to the coffee machine—can be personalized and automated to suit their preferences.

In addition, the buying experience itself is becoming digital-first. Virtual reality (VR) tours, AI-based property recommendations, and blockchain-enabled transactions are slowly transforming how luxury real estate is bought and sold. International buyers and NRIs are especially benefiting from this, as they can explore and even finalize purchases without physical site visits.

Developers are investing heavily in technology to stand out in a competitive market. Projects that emphasize smart living not only attract higher demand but also command a premium. In the future, digital capabilities may become a baseline expectation in luxury housing, rather than a differentiator.

Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " India Luxury Residential Real Estate Market.” 

Based on Cities, Tier 1 cities dominated the India luxury residential real estate market due to a combination of economic, social, and infrastructural factors that make them the preferred destinations for high-net-worth individuals (HNWIs) and affluent buyers.

Tier 1 cities like Mumbai, Delhi-NCR, Bengaluru, Pune, and Chennai are economic powerhouses, home to major business districts, corporate headquarters, and flourishing industries. These cities offer a wide range of employment and entrepreneurial opportunities, which attract top professionals, executives, and business leaders. This creates a significant concentration of wealth, leading to a growing demand for luxury residences that reflect their social status and lifestyle aspirations.

The real estate market in Tier 1 cities benefits from limited land availability, driving up the value of properties in prime locations. Affluent buyers seek luxury homes in areas with proximity to business hubs, international schools, hospitals, fine dining, and cultural institutions. In cities like Mumbai, which faces a shortage of prime land, the limited availability of high-end residential projects increases demand, making it an attractive investment for both buyers and developers.

Tier 1 cities are cosmopolitan, offering an international lifestyle with global exposure, which is highly appealing to wealthy buyers, including Non-Resident Indians (NRIs). These cities boast luxury infrastructure, international brands, five-star hospitality, and cutting-edge amenities that align with the preferences of buyers accustomed to global standards of living. As the desire for branded residences, smart homes, and wellness-driven designs grows, these cities are well-positioned to meet these demands.

The rapid growth of infrastructure in Tier 1 cities—such as metro networks, highways, airports, and advanced healthcare facilities—makes these locations desirable for luxury living. Connectivity to key commercial, entertainment, and cultural hubs adds to the appeal of these cities, ensuring that high-end properties remain in demand.

Based on Region, North India is emerging as the fastest-growing region in the India Luxury Residential Real Estate market due to a combination of factors, including economic growth, urbanization, infrastructure development, and increasing demand from high-net-worth individuals (HNWIs) and non-resident Indians (NRIs).

Cities like Delhi, Gurugram, and Noida have become economic powerhouses, attracting both domestic and international businesses. The region’s strong industrial, IT, and financial sectors have created substantial wealth, leading to an increase in HNWIs. As the number of affluent individuals rises, so does their demand for luxury homes with exclusive amenities, making it a highly lucrative market for developers.

In addition, the region’s proximity to political power centers, cultural landmarks, and top educational institutions makes it an attractive destination for high-end residential developments. Delhi-NCR, particularly, is seeing significant demand for luxury apartments, villas, and penthouses in both urban centers and satellite towns. Furthermore, Gurugram, with its modern infrastructure, corporate hubs, and international appeal, is witnessing substantial growth in luxury real estate. The expansion of Noida as a tech and residential hub has also contributed to this growth, with affluent buyers preferring large-format homes in well-planned communities.

Infrastructure plays a crucial role in North India’s growth. Projects such as the Delhi-Mumbai Industrial Corridor, rapid metro expansions, improved connectivity to airports, and the development of smart cities have made regions like Gurugram, Faridabad, and Greater Noida more accessible and desirable for luxury living. These developments have improved the quality of life, making them highly attractive to affluent buyers seeking modern and well-connected living environments.

The influx of NRIs from countries such as the U.S., U.K., and the Middle East, who see North India as a preferred investment destination, further boosts demand for luxury homes. This trend has increased the region’s appeal as a hub for high-end real estate.

Major companies operating in the India Luxury Residential Real Estate Market are:

• Indiabulls Real Estate
• Oberoi Realty
• Godrej Properties
• Brigade Group
• Omaxe
• Sunteck Realty
• The Pheonix Mills
• Mahindra Lifespaces

Download Free Sample Report

Customers can also request 10% free customization on this report.

“The India Luxury Residential Real Estate market presents a significant growth opportunity driven by a rising population of high-net-worth individuals, increasing urbanization, and evolving lifestyle aspirations. As demand shifts toward premium living experiences, there is strong potential for developers to innovate with branded residences, smart home technologies, and wellness-centric designs. Additionally, favorable regulatory reforms and growing interest from Non-Resident Indians (NRIs) further expand the investment base. Tier 1 cities and emerging luxury corridors in Tier 2 regions offer lucrative prospects for high-end developments, positioning the luxury segment as a resilient and high-margin component of the broader real estate landscape.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“India Luxury Residential Real Estate Market, By Type (Villas & Landed Houses, Apartment, Penthouses, Bungalows, Row Houses, Duplexes), By Cities (Tier 1 Cities, Tier 2 Cities), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Luxury Residential Real Estate Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Luxury Residential Real Estate Market.

Contact

TechSci Research LLC

420 Lexington Avenue,

Suite 300, New York,

United States- 10170                   

Tel: +13322586602

Email: [email protected]

Website: www.techsciresearch.com