Luxury living beckons in India as demand soars with tech upgrades, say experts

The luxury real estate market in India has been witnessing remarkable growth, driven by an increasing number of buyers, evolving lifestyle aspirations, and rapid urbanisation. Despite global economic uncertainties, India's luxury property sector continues to flourish, attracting both domestic and international investors.

"The luxury real estate market in India has surged due to rising affluence, urbanisation, and evolving lifestyle preferences. Economic growth has increased the number of high-net-worth individuals in the country, driving demand for high-quality properties, with the current rate of growth at 21 per cent. Rapid urban development across the country has created more ideal locations for luxury properties. Tier-2 and Tier-3 cities are also catching up in this regard, growing more and more, year by year," Sridhar Samudrala, Founder and CEO of Hecta, said.

According to real estate experts, major metropolitan areas like Mumbai, Delhi, and Bengaluru remain hotbeds for luxury real estate in India. However, there is a growing interest in emerging cities such as Pune, Hyderabad, and Ahmedabad, which offer a blend of luxury and affordable pricing compared to the traditional metros.

The experts also believe that collaborations between real estate developers and luxury brands are becoming increasingly popular. Branded residences, which offer a combination of high-end amenities and brand prestige, are attracting affluent buyers. Projects associated with international hotel brands and fashion labels are particularly in demand.

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"Indian buyers now seek homes that offer enhanced lifestyle experiences, including state-of-the-art amenities, eco-friendly designs and sustainable development, the best example of which are the managed estates launched by 32nd, a set of beachside properties in the shores of Goa, which aim to provide a utopian experience, constructed completely by locally sourced, environmentally friendly materials and processes. Valued at a range of Rs 40 crore to Rs 70 crore, this experience includes amenities such as personal yachts, helipad transfers, and other, top-of-the-line luxury elements. Global exposure has influenced demand for international standards in domestic properties and developers are making this a reality. Government reforms, which are set to remain consistent after the recent election, have boosted buyer confidence and attracted foreign investment. Valued at USD 30 Billion, with sales having tripled since 2022, the future of luxury real estate in India looks extremely promising with sustained growth," Samudrala said.

According to experts, the country's luxury real estate market is experiencing significant growth and the Indian luxury real estate market to exceed USD 100 billion in the next five years.

"India's luxury real estate market is experiencing significant growth, reflecting a rising demand for high-end living, with research indicating that luxury homes priced above Rs 1.5 crore accounted for 21 per cent of the total units sold across the top seven cities in the first quarter of 2024. This surge is driven by increasing disposable incomes, a preference for sustainable, authentic homes, and a desire for high-end wellness amenities such as private pools, spas and personalised services," Pavan Kumar, CEO & Founder of White Lotus Group, said.

"Another study projects, the Indian luxury real estate market to exceed USD 100 billion in the next five years, further propelled by rapid urbanisation and a growing demand for highly customized spaces and eco-friendly living environments. Having been in the bespoke luxury space for the last 10 years, our company is enthusiastic about the future and will continue its efforts of tailor-making homes that are strategically located, thoughtfully designed, and prioritise resident well-being. We aim to ensure that our developments exceed the expectations of discerning homeowners and set new standards in luxury living," he added.

Future prospects

A real estate expert said that as wealth distribution in India becomes more equitable, the luxury market is likely to see growth not only in ultra-luxury but also in the upper-mid segment. "Developers may introduce more tiered luxury offerings to cater to a broader audience. The future of luxury real estate will heavily lean on technological advancements. Smart home features will evolve with AI-driven home management systems, advanced security solutions, and integrated wellness technologies becoming commonplace," the expert said.

"With increasing awareness about climate change, the demand for green buildings will surge. Future luxury homes will likely incorporate advanced sustainable technologies, renewable energy sources, and waste reduction systems, pushing the boundaries of eco-friendly living," the expert added.

Conclusion

The luxury real estate market in India is poised for sustained growth, driven by economic factors, lifestyle changes, and technological advancements. While traditional market drivers like metropolitan demand and NRI investment remain strong, emerging trends such as sustainability, smart homes, and branded residences are redefining the landscape. As developers and investors adapt to these trends, the future of luxury real estate in India looks promising, offering diverse opportunities for growth and innovation.