India’s luxury real estate market is witnessing sustained, record-setting momentum, fuelled by rising ultra-HNI wealth, acute supply scarcity and rapidly evolving lifestyle aspirations. What began as a post-pandemic surge has now cemented into a long-term trend, reinforced by steady price appreciation, strong macroeconomic fundamentals and heightened demand for high-end, limited-inventory homes across major metros, according to a Kotak Private report.

Following an initial post-pandemic surge, the market has maintained steady growth, with the Reserve Bank of India’s All-India Housing Price Index recording consistent year-on-year gains of 3–5% each quarter since 2022, supported by India’s robust economic performance, including estimated GDP growth of 6.5% in FY25, construction expanding 9.4% and financial, real estate and professional services growing 7.2%.

Indian metropolises are outperforming international markets as well, underscoring the heightened demand for prime luxury assets that combine scarcity, craftsmanship and long-term value.

Luxury Housing Leads the Upswing

Luxury housing continues to outperform broader residential segments. The luxury real estate component of the KPLI posted double-digit annual growth of 10.8%, while luxury home sales surged 85% year-on-year during H1CY25 across major metros. Cities such as NCR, Mumbai, and Bengaluru are leading the appreciation, driven by tech-sector wealth creation, infrastructure upgrades, and expanding investor demand.

Demand and Scarcity Define Prime Markets

Demand for prestigious addresses such as South Mumbai, BKC, Worli, Delhi’s Lutyens Zone, South Delhi, and Gurugram’s Golf Course Road far exceeds supply. These prime markets are defined by scarcity and superior access to business hubs, schools, and healthcare. For ultra-HNIs, ‘location’ remains the top investment factor, followed by ‘developer reputation’.

Evolving Preferences in Modern Luxury Living

Today’s luxury extends beyond the address. Nearly half of ultra-HNIs cite amenities as key decision drivers, while privacy, exclusivity, and sustainability are shaping preferences. Green-certified developments like DLF The Camellias, India’s first LEED Platinum residential project, set new benchmarks for eco-conscious luxury.

Second Homes and Serviced Residences on the Rise
Luxury second homes in Goa, Alibaug, and the Himalayan foothills are increasingly popular, with three in four ultra-HNIs already owning or planning to buy one. Meanwhile, serviced residences offering hotel-style amenities through branded partnerships are gaining traction, redefining convenience and sophistication in luxury living.

In conclusion, luxury real estate in India has continued to show healthy growth, fuelled by a robust economy, steady construction activity and favourable policies. The convergence of rising wealth and limited supply underscores its strength, ensuring that luxury real estate remains an enduring asset class for the country’s ultra-HNIs, a lasting expression of success, security and modern luxury.