From Lutyens’ Delhi, where owning a home means rubbing shoulders with the country’s political and industrial elite, to Mumbai’s Bandra, whose celebrity neighbourhood and seaside charm make it one of India’s most coveted postcodes, the country’s luxury real estate market is witnessing a sharp surge in demand.
This boom is being driven by India’s robust economic growth, rising personal fortunes, and the swelling ranks of the ultra-wealthy.
According to the Hurun India Rich List 2024, India’s billionaire count reached 334 as of July 31, 2024, up by 75 from 259 in 2023.
“Along with the rise in buyer profile pool, for India’s affluent, investing in luxury real estate is also no longer just about wealth but about lifestyle, legacy, and long-term security,” Amit Goyal, managing director, India Sotheby’s International Realty, tells Invezz in an interview.
“Today, a luxury home isn’t merely an address; it’s a strategic asset that delivers a rare trifecta of elevated living, capital appreciation, and multi-generational value.”
Goyal also touches upon how investment by NRIs and foreigners is shaping up, how, while luxury properties in India do guarantee strong capital appreciation, the rental yields remain low, as well as how new wealth creators like startup founders and tech professionals are redefining real estate investment.
Excerpts:
Amit Goyal, Managing Director, India Sotheby’s International Realty
What qualifies as luxury real estate in India and what’s fuelling its demand?
Invezz: What price range or property type currently defines the “luxury” segment in India, and what is driving demand for this segment in the country?
At India Sotheby’s International Realty, we consider luxury as anything above INR 8 cr. but it would vary based on the city and location that we are speaking of.
In cities like Kolkata, Hyderabad and Pune, this figure would be closer to INR 5 crore +.
The surge in demand for luxury homes is being fuelled by India’s strong economic growth, the rising fortunes and the growing number of ultra-wealthy Indians.
As of July 2024, India had 334 billionaires, up by 75 from the previous year, according to Hurun India.
Notably, over 55% of this new wealth has been created by first-generation entrepreneurs – a demographic that’s rewriting the profile of luxury real estate buyers.
Along with the rise in the buyer profile pool, for India’s affluent, investing in luxury real estate is also no longer just about wealth but about lifestyle, legacy, and long-term security.
Today, a luxury home isn’t merely an address; it’s a strategic asset that delivers a rare trifecta of elevated living, capital appreciation, and multi-generational value.
Luxury properties that offer distinct advantages, be it panoramic views, privacy, or best-in-class amenities, consistently outperform the market.
In this segment, the “wow factor” is not just desirable, it’s bankable.
Lutyens, BKC, Golf Course Road among locations seeing strong demand
Invezz: Which cities and locations are showing the strongest demand for luxury properties right now? Are you seeing more end-user demand or investor-driven activity in the premium segment?
Across India’s major metros, luxury real estate remains a preferred choice for investors seeking stability and long-term value.
Delhi and Mumbai continue to lead demand.
In Delhi, Lutyens, Jorbagh, Diplomatic Enclave, are prime addresses and are viewed as appreciating assets.
In Mumbai, improved infrastructure has strengthened key markets such as BKC, Bandra, Worli, and South Mumbai, where limited supply and steady demand keep values high.
For those who prefer high-rise living, Gurugram’s Golf Course Road stands out with its world-class amenities, gated privacy, and proximity to business hubs.
Similarly, Bengaluru’s luxury market is thriving, with sought-after developments in Vittal Mallya Road, Koramangala and Hebbal, especially projects that blend design, functionality, and community living.
There is also a continued demand for second homes, from beachfront villas in Goa and Alibag to homes in hill destinations such as Rishikesh, Mashobra and Kasauli.
For India’s discerning buyers, these properties are no longer just vacation homes but lifestyle investments offering space, serenity, and long-term value, especially managed villas, which have the potential to offer rental returns to the owners when not in personal use.
NRI investment sentiment measured; foreign investors investing more in commercial than residential real estate
Invezz: What is the sentiment among NRIs and foreign investors when it comes to the Indian luxury homes market?
Investor sentiment among NRIs and foreign buyers toward India’s luxury-home market is positive but measured.
Top developers are noticing a clear trend of an increase in NRIs seeking a safe, stable future and hassle-free living in their homeland.
They are looking for luxury residential properties from reputable developers who provide state-of-the-art amenities that also promote community life.
For many returning NRIs, the motivation is two-fold: a stake in India’s growth plus a homecoming asset.
Foreign investors, too, are taking note.
Foreign investment drove 73% of the total investments in India’s real estate market, with cross-border investments exceeding $1.5 billion.
But these investments are in commercial assets, rather than residential.
Indian luxury real estate offers strong capital appreciation but modest rental yields
Invezz: How does India compare with other luxury real estate markets such as Dubai, Singapore, or London in terms of value and growth potential? What are the untapped opportunities and challenges, and what are the lessons it can learn from some of the more mature global luxury real estate markets?
According to Sotheby’s International Realty’s Global Mid-Year Luxury Outlook Report, the outlook for 2025 remains upbeat, though more measured, as discerning buyers turn increasingly selective, long-term, and value-focused.
In India, luxury real estate continues to offer strong capital appreciation but modest rental yields.
In contrast, mature markets like London and New York are seeing steady yet subdued price growth, offset by stronger rental returns.
While India’s luxury housing market is driven largely by domestic HNI and UHNI buyers, global gateway cities such as Dubai, London, and New York continue to attract robust demand from overseas investors.
New wealth creators viewing homes as personal statements
Invezz: What trends are you observing among India’s new wealth creators—startup founders, tech professionals, and family offices—in terms of property investment? Are you seeing rising demand from millennials and GenZ buyers as well?
India’s luxury housing market, once dominated by legacy industrial families, is now being reshaped by startup founders, next-generation inheritors, and NRIs.
This shift aligns with India’s robust economic momentum and a surge in capital market gains, particularly from the 2024 equity boom, which led to many tech entrepreneurs reinvesting in prime real estate.
Recent marquee purchases by Akhil Wable (DataforIndia), Deep Kalra (MakeMyTrip), and Sameer Manchanda (Den Networks) underscore this growing inclination toward luxury assets.
For founders, a luxury home often represents both a milestone and a financial anchor: a stable, appreciating asset that hedges against inflation.
But beyond wealth creation, this new class of buyers view homes as personal statements.
They are looking for spaces that reflect their individuality, intention, and legacy.
India’s luxury real estate segment to showcase continued momentum over the next year
Invezz: How do you expect India’s luxury real estate market to perform over the next 12 months? Also, with the Fed expected to cut interest rates twice before the year ends, what kind of impact would it likely have on the market?
Over the next 12 months, India’s luxury real estate segment is set to showcase continued momentum.
The demand for premium homes remains robust, with luxury apartments worth ₹10 crore and above generating ₹14,750 crore in sales in H1 2025, up 11% year-on-year, according to the Luxury Housing Report – Mumbai by India Sotheby’s International Realty and CRE Matrix.
The recent 50-basis-point repo rate cut by the RBI to 5.5% has lowered borrowing costs and improved liquidity.
The overall credit environment supports more stable financing, shorter time-to-decision and greater buyer confidence.
On the macro front, expectations of two US Federal Reserve rate cuts before the end of 2025 could also indirectly benefit India.
Lower US rates typically encourage global capital flows into emerging markets and may give the Reserve Bank of India (RBI) more flexibility to ease borrowing costs domestically.
A potential reduction in home loan rates and better liquidity conditions would further strengthen the luxury housing segment.
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