India Luxury Homes Market Set To Grow

India’s real estate market is poised for transformation in 2025, driven by consumer shifts, tech advancements, and infrastructure growth all supported by a strong economy and low lending rates; the sector is set to grow at 9.2% CAGR.

The suburban surge: A new era of residential living

The shift from major urban centres like Delhi, Mumbai, and Bengaluru to quieter suburban areas is gaining momentum in 2024 and is poised to accelerate in 2025. Driven by remote work, professionals are opting for spacious, affordable homes in tier-2 and tier-3 cities, seeking a better quality of life.

With the India Residential Real Estate Market projected to grow from USD 227.26 billion in 2024 to USD 687.27 billion by 2029 at a 24.77% CAGR, suburban living is becoming more feasible. Improved connectivity through highways, metros, and high-speed trains enhances accessibility, blending rural tranquillity with urban opportunities.

Luxury homes: A rising demand for prestige and comfort

Luxury real estate remains a growing market segment, driven by demand for exclusivity, prestige, and sophistication. In cities like Mumbai, Delhi, and Bengaluru, luxury homes are evolving into status symbols. Sales surged 37.8% Y-o-Y in the first nine months of 2024, with 12,625 units priced at Rs 4 crore or more sold, up from 9,160 last year.

High-end features such as private pools, state-of-the-art security, and remote-work-friendly spaces, including home offices and wellness rooms, are in demand. Additionally, buyers increasingly seek homes blending luxury with nature, emphasising tranquillity alongside urban sophistication.