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

Market Overview

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. 

Luxury Residential Real Estate refers to high-end residential properties that offer exceptional quality, prime locations, and superior amenities. These homes are typically priced significantly above the market average and are designed to provide maximum comfort, privacy, and exclusivity. Luxury properties may include mansions, penthouses, waterfront estates, or homes in prestigious neighborhoods. They often feature custom architecture, premium materials, expansive floor plans, and state-of-the-art technology.

What distinguishes luxury real estate is not only its price or size but also the lifestyle it offers. These homes are often located in desirable areas such as coastal cities, mountain resorts, or urban centers, where access to fine dining, cultural attractions, and elite schools is readily available. Privacy and security are key elements, with many properties offering gated access, private staff quarters, and advanced surveillance systems.

In the luxury market, buyers often prioritize prestige, investment value, and unique design over practicality. The appeal of luxury residential real estate lies in its ability to provide a refined living experience and status symbol for affluent individuals. Due to the exclusivity and limited availability of such properties, they tend to retain or increase their value, making them a significant asset in a diversified investment portfolio.

Key Market Drivers

Rising Affluence and Expanding High-Net-Worth Population

One of the most significant drivers of luxury residential real estate in India is the increasing number of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). As India’s economy grows and diversifies, more individuals are generating wealth through entrepreneurship, global employment, and investment. Industries such as technology, finance, pharmaceuticals, and manufacturing have been instrumental in creating this new class of affluent buyers.

This demographic seeks not just a house, but a lifestyle. They are willing to pay a premium for properties that offer exclusivity, comfort, and status. Luxury homes act as both living spaces and investment vehicles, reflecting personal success and social stature. As disposable incomes increase, so does the appetite for spacious homes with premium features like private elevators, concierge services, wellness centers, and advanced home automation systems. Moreover, many successful professionals working abroad are returning to India with aspirations of living in world-class homes similar to those they experienced overseas. This reverse migration has fueled demand in cities like Mumbai, Delhi, Bengaluru, and Hyderabad, where developers are catering to this niche by creating high-end, globally styled residences.

This trend is likely to continue, as India is projected to see a substantial increase in the number of HNWIs over the next decade, ensuring steady demand in the luxury real estate segment. India’s High-Net-Worth Individual (HNWI) population is rapidly growing. As of 2024, India is home to approximately 7.5 lakh HNWIs (individuals with a net worth of over USD 1 million), making it the third-largest HNWI population globally, behind the U.S. and China.

Urbanization and Infrastructure Development

India is undergoing rapid urbanization, with more people migrating to urban centers for better employment and lifestyle opportunities. As cities expand, the demand for high-quality residential spaces rises, especially among the urban elite who prioritize comfort, connectivity, and convenience. Metro cities like Mumbai, Delhi-NCR, Bengaluru, and Pune have witnessed a strong push in infrastructure, such as improved road networks, metro connectivity, and smart city initiatives.

These developments not only enhance the liveability of cities but also significantly increase the value of real estate in prime locations. Proximity to business districts, airports, international schools, and healthcare facilities becomes a major selling point for luxury properties. Improved accessibility transforms once-overlooked areas into high-demand zones, prompting developers to launch luxury projects.

Smart infrastructure also complements luxury living. Areas with underground cabling, efficient waste management systems, water recycling units, and sustainable energy practices attract eco-conscious high-end buyers. As government investment in infrastructure continues, especially under programs like Smart Cities Mission and Gati Shakti, luxury real estate stands to benefit greatly.

Thus, as urban India continues to modernize, luxury housing will remain in demand among those seeking a premium lifestyle within well-connected and aesthetically upgraded environments. As of 2021, about 35% of India's population lives in urban areas, and this is projected to increase to 50% by 2031 (World Bank).

Lifestyle Aspirations and Changing Consumer Preferences

Today’s Indian luxury homebuyer is no longer just looking for space or location—they are looking for a complete lifestyle experience. The definition of luxury has evolved significantly in recent years, influenced by global exposure, travel, and digital access to international trends. Modern Indian buyers aspire to live in homes that reflect global standards, combining elegance, functionality, and sustainability.

These changing preferences are driving developers to innovate with design, amenities, and services. Features like designer interiors, rooftop lounges, private cinemas, spa facilities, and smart home technology are now becoming common in luxury residential projects. Buyers are increasingly drawn to gated communities that offer not just security but a curated lifestyle with social clubs, co-working spaces, wellness centers, and even pet parks.

There is also a growing preference for branded residences, where real estate developers collaborate with luxury hospitality or fashion brands to offer an exclusive living experience. These residences appeal to the status-conscious buyer and offer brand-backed assurance of quality and service.

Millennials and younger professionals are entering the luxury segment earlier than before, often influenced by a blend of wealth creation and desire for instant lifestyle gratification. This generational shift in mindset is reshaping the luxury housing market from being merely asset-driven to experience-driven. India’s high-net-worth individual (HNWI) population is expected to grow by over 40% between 2020 and 2025, reaching more than 250,000 individuals by 2025. As a result, the demand for premium living experiences has surged, with a clear shift toward aspirational living spaces.

Real Estate Regulation and Developer Consolidation

The regulatory reforms introduced in the Indian real estate sector—particularly the implementation of RERA (Real Estate Regulation and Development Act), GST (Goods and Services Tax), and stricter banking norms—have significantly enhanced transparency and accountability in the market. These measures have led to a consolidation of the sector, with smaller, less credible developers exiting and stronger, reputable players dominating the luxury space.

As trust becomes a cornerstone of luxury property investment, buyers are leaning towards established developers who have a track record of timely delivery, legal compliance, and high construction standards. These developers are also more likely to partner with international architects, designers, and consultants to create differentiated, high-quality products.

RERA has especially benefited the luxury segment by ensuring that projects are registered and monitored, protecting the interests of buyers who are making significant financial commitments. With reduced project delays and increased disclosures, the luxury segment now operates in a more professional and buyer-friendly environment.

This consolidation has improved market dynamics by reducing speculative activity and creating a more stable environment for long-term investment. As a result, investor confidence in luxury residential real estate has risen, attracting both domestic and NRI (Non-Resident Indian) buyers who see value in transparent transactions and high-end living experiences. As of 2024, over 50,000 projects have been registered under RERA across India, leading to better compliance and more reliable timelines for delivery.

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Key Market Challenges

Limited Liquidity and Resale Difficulties

One of the most significant challenges in the Indian luxury residential real estate market is the issue of limited liquidity and the difficulty in reselling high-end properties. Unlike mid-income housing, which has a broader buyer base and relatively quicker turnover, luxury properties cater to a niche audience. This exclusivity makes it harder for owners to find buyers when they wish to sell, especially during times of economic uncertainty or market corrections.

Luxury homes often come with unique specifications—larger floor areas, bespoke interiors, premium locations, and high-end amenities—that may not appeal to the average buyer or investor. Moreover, pricing is subjective and highly influenced by brand value, design, and developer reputation. This makes it harder to arrive at a standard market valuation, thereby elongating the negotiation and transaction process. Additionally, the capital gains tax and stamp duty on high-value transactions add financial friction, discouraging frequent property movement. Wealthy individuals may prefer to hold on to such properties as status symbols or for legacy purposes, further reducing circulation in the secondary market.

From an investor’s perspective, luxury homes are less liquid compared to financial assets or even commercial real estate, which can yield more consistent rental returns. While luxury properties can appreciate significantly over time, the holding period required to realize such gains can be long and uncertain.  Moreover, macroeconomic disruptions—such as inflation, interest rate hikes, or global geopolitical tensions—tend to affect luxury sales more acutely than affordable housing. During downturns, the demand for luxury homes tends to drop sharply, leading to longer inventory cycles and holding costs for developers and investors alike.

This limited liquidity makes the segment riskier, particularly for those looking at luxury homes as short- to medium-term investments rather than long-term lifestyle assets.

Regulatory Complexity and High Transaction Costs

Another major challenge in India’s luxury real estate market is the complex regulatory environment and high transactional costs, which can discourage both domestic and foreign buyers. Despite regulatory reforms such as RERA, the sector still suffers from fragmented rules, overlapping authorities, and bureaucratic red tape—particularly in metropolitan regions where luxury developments are concentrated.

For instance, acquiring land, obtaining construction approvals, and navigating environmental clearances can be time-consuming and inconsistent across different states. Delays in project approvals can lead to stalled developments, missed deadlines, and increased costs, affecting buyer confidence in luxury projects that are already capital-intensive.

To these regulatory hurdles, the cost of transacting in luxury real estate in India is considerably high. Buyers must contend with steep stamp duties, which can range from 5% to 7% (or more depending on the state), registration fees, and GST (Goods and Services Tax) in the case of under-construction properties. These costs are even more substantial in high-value transactions, significantly raising the effective purchase price.

Non-Resident Indians (NRIs) and foreign investors face additional procedural and legal constraints. Restrictions on property ownership and repatriation of funds, combined with a lack of centralized support systems, deter many international buyers from entering the Indian luxury housing market confidently.

Taxation complexity also adds to the challenge. Investors may face difficulties navigating the rules around capital gains tax, wealth tax (though abolished, past perceptions still linger), and TDS (Tax Deducted at Source) obligations, particularly when exiting the investment. Such factors often require the involvement of multiple advisors—legal, tax, and real estate—which increases the overall cost and effort involved in luxury real estate transactions.

This regulatory and cost-heavy environment undermines the otherwise attractive proposition of luxury homes as a lifestyle or investment asset. Unless governments simplify the approval process and rationalize taxes, the luxury segment may struggle to reach its full potential, especially in terms of attracting long-term institutional and global capital.

Key Market Trends

Rise of Branded Residences and Global Collaborations

One of the most notable trends in the Indian luxury residential market is the growing popularity of branded residences. These are high-end residential developments created through partnerships between real estate developers and globally recognized luxury brands, such as international hospitality groups, fashion labels, or design firms.

This trend is driven by the evolving aspirations of wealthy Indian buyers who are increasingly drawn to homes that offer not just superior amenities but also a prestigious brand association. Owning a branded residence is viewed as a statement of status and refined taste, reflecting a global lifestyle within the local context.

Branded residences typically come with curated interior design, bespoke architecture, and access to premium concierge services. Many of these developments mirror the standards of five-star hotels, offering spa facilities, valet services, private chefs, and lifestyle management—all under the brand's name and quality assurance. Furthermore, such collaborations reduce the perceived risk for buyers. When a renowned global brand backs a property, it signals consistency in quality, service, and maintenance, making it easier for buyers to trust and invest.

This trend is also attracting interest from Non-Resident Indians (NRIs) and international buyers who are familiar with these brands and view them as symbols of reliability and luxury. Cities like Mumbai, Delhi, Bengaluru, and Goa are emerging as hotspots for these branded developments.

The branded residence model is set to grow in India, reflecting a shift from purely asset-driven purchases to experience- and prestige-driven acquisitions.

Growing Focus on Wellness and Sustainability

Another prominent trend in the luxury real estate sector in India is the increasing emphasis on wellness-oriented living and sustainable design. High-net-worth individuals are becoming more health-conscious and environmentally aware, and this is influencing their real estate choices.

Modern luxury developments are now integrating wellness features such as air purification systems, natural ventilation, circadian lighting, sound-proof interiors, and wellness zones that include yoga decks, meditation gardens, and holistic health centers. These elements are no longer just “add-ons” but central aspects of the design philosophy.

Sustainability is also a key driver. Green buildings with IGBC or LEED certification are gaining traction among buyers who want homes that reduce energy consumption and carbon footprint. Rainwater harvesting, solar panels, waste management systems, and eco-friendly construction materials are increasingly part of luxury project specifications.

Developers are marketing these features not just for their environmental benefits, but as enhancements to lifestyle and long-term cost savings. In a post-pandemic world, the demand for homes that support physical and mental well-being has intensified.

This trend is redefining the concept of luxury—from being merely about extravagance to being about holistic, conscious living. As a result, wellness and sustainability are no longer niche concepts but essential pillars of premium real estate development in India.

Segmental Insights

Type Insights

The Apartment held the largest market share in 2025.  Apartments dominate the India Luxury Residential Real Estate market primarily due to urban density, limited land availability, and evolving lifestyle preferences of affluent buyers in major metropolitan areas. Cities like Mumbai, Delhi-NCR, Bengaluru, and Pune face severe space constraints, making vertical development a more practical and profitable option for developers. As a result, luxury apartments in high-rise towers have become the preferred format for premium housing.

From the buyer’s perspective, luxury apartments offer a compelling mix of location, convenience, and security. Most are strategically located in prime city areas or well-connected suburbs, ensuring easy access to business hubs, international schools, airports, and healthcare facilities. In densely populated urban centers, owning a spacious, well-designed apartment in a prestigious tower is often seen as more desirable and efficient than managing an independent home.

Today’s luxury apartments are far more than just living spaces—they are lifestyle ecosystems. High-end projects often come with state-of-the-art amenities such as rooftop pools, private elevators, concierge services, fitness centers, co-working spaces, and clubhouses. The convenience of managed living—especially with 24/7 security, housekeeping, and maintenance—makes luxury apartments attractive to busy professionals, business owners, and NRIs. Additionally, developers find apartments more scalable and commercially viable. Vertical construction allows for better land utilization and higher profit margins. Apartments also offer better resale value and rental potential in prime urban locations, making them appealing from an investment perspective.

With increased demand for smart homes and sustainable infrastructure, luxury apartment complexes are better positioned to incorporate integrated technology, green building practices, and community-driven living—all of which are becoming increasingly important to modern buyers.

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Regional Insights

South India held the largest market share in 2025. South India has emerged as a dominant region in the India Luxury Residential Real Estate market due to several key factors that cater to both demand and supply dynamics. Cities like Bengaluru, Hyderabad, Chennai, and Kochi are increasingly becoming hotspots for high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), driving the luxury real estate sector's growth in this region.

Bengaluru, often referred to as the “Silicon Valley of India,” is home to a booming IT sector, attracting a large number of tech professionals and entrepreneurs with high disposable incomes. The city’s growth as a global technology hub has fostered significant demand for luxury homes. Similarly, Hyderabad and Chennai, known for their thriving IT, healthcare, and manufacturing sectors, are seeing substantial inflows of affluent professionals, further boosting luxury property demand.

South Indian cities are known for their robust infrastructure, including well-developed roads, metro systems, and international airports. These infrastructure developments, along with smart city initiatives, have significantly improved connectivity, making luxury homes in prime locations more attractive. Cities like Bengaluru and Chennai are also emerging as global cities with growing international business and cultural appeal.

The temperate climate of South India is another attractive factor, particularly in comparison to the extreme weather conditions in some northern regions. The cooler climate of hill stations like Coorg, Ooty, and Kodaikanal has seen a rise in demand for second homes, villas, and bungalows. Additionally, the laid-back yet cosmopolitan lifestyle of South Indian cities appeals to affluent buyers seeking a balance between luxury and relaxation.

Compared to the land-scarce cities in North and West India, South India offers larger tracts of land, which are conducive to the development of expansive luxury villas, gated communities, and bungalows, giving developers more opportunities to create high-end projects.

Recent Developments

• In August 2024, Huawei Digital Power unveiled its innovative Smart Home Energy solution, marking a major step forward in the company’s mission to support a sustainable and energy-efficient future for the Philippines. The launch event gathered a wide range of participants, including government officials, leading figures from the technology and solar energy sectors, major media organizations, and top architectural and design firms. This collaborative effort highlights the growing national commitment to adopting advanced, eco-friendly energy technologies. 
• In May 2025, Cohort Capital introduced its first unregulated residential bridging product, launching with two successful completions in prime central London worth a combined USD 7.53 million. Tailored for seasoned investors and developers, the new offering is open to both UK-based Special Purpose Vehicles (SPVs) and offshore entities. 

Key Market Players

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

Report Scope:

In this report, the India Luxury Residential Real Estate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Luxury Residential Real Estate Market, By Type:

o   Villas & Landed Houses

o   Apartment

o   Penthouses

o   Bungalows

o   Row Houses

o   Duplexes

• India Luxury Residential Real Estate Market, By Cities:

o   Tier 1 Cities

o   Tier 2 Cities  

• India Luxury Residential Real Estate Market, By Region:

o   South India

o   North India

o   West India

o   East India   

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Luxury Residential Real Estate Market.

Available Customizations:

India Luxury Residential Real Estate Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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