India’s luxury housing sales rise; what is driving premium real estate demand?

Millennials and high-net-worth individuals drive the demand for luxury housing in India, with Delhi-NCR, Mumbai, Hyderabad, and Pune reporting increasing sales.

Riya R Alex
Published2 Sep 2024, 10:20 PM IST
Millennials are buying more luxury houses.
Millennials are buying more luxury houses.

Housing sales in India hit an 11-year high of 1.73 lakh units between January and June, according to a report by global real estate consultants Knight Frank. The luxury housing segment contributed around 41 per cent of the real estate sector's sales growth from January to June. Several factors contribute to this growing demand for luxury housing.

A major factor in the increasing demand for luxury homes is the rise of millennials. According to CoreLogic data, 54 per cent of home purchases were made by millennials.

 

Also Read | India’s average housing prices grow 12% in April-June quarter: Colliers CEO

Urbanisation has also increased the sale of luxury homes in Delhi-NCR, Mumbai, Hyderabad, and Pune. Delhi-NCR sold around 3,300 luxury homes in the first half of 2024, a 13.8 per cent increase from the previous year.

The growth of luxury housing has been contributed by high-net-worth individuals, the purchasing power of millennials, and the desire for luxurious lifestyles.

 

Also Read | Why are housing prices in Ahmedabad rising? Anarock Report says THIS

“The Indian luxury homes market has never been this robust. Besides various factors, the increased preference for such homes is driven by enhanced lifestyle aspirations and the desire to live in iconic addresses developed by reputed builders. As incomes have risen, so have expectations,” said Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group.

The ultra-wealthy are not just looking for a place to live; they want a luxurious home that also represents a sound investment with a higher ROI,” he added.

According to a report by Cushman and Wakefield, 61 per cent of new residential projects in Q1 2024 were in the luxury segment.

"In recent years, there has been a significant shift towards luxury housing. Coupled with economic growth and infrastructure development, high-net-worth individuals are seeking spacious, comfortable homes with world-class amenities and aspirational values. Delhi-NCR, especially the Noida Expressway, Greater Noida, and Yamuna Expressway regions, have emerged as sought-after locations," said Yash Miglani, MD of Migsun Group

 

Also Read | Godrej Properties bags two luxury housing plots in Gurugram for ₹515 crore

“The demand for luxury homes in India is driven by a combination of factors—rising incomes, lifestyle aspirations, urbanisation, and infrastructural development, such as the construction of Jewar Airport. This is an exciting time for both buyers and investors in the luxury real estate market,” he added.

 

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:2 Sep 2024, 10:20 PM IST
Business NewsIndustryInfrastructureIndia’s luxury housing sales rise; what is driving premium real estate demand?

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    164.30
    03:58 PM | 7 OCT 2024
    -2.45 (-1.47%)

    Axis Bank share price

    1,150.30
    03:29 PM | 7 OCT 2024
    -27.2 (-2.31%)

    Tata Power share price

    441.05
    03:59 PM | 7 OCT 2024
    -25.65 (-5.5%)

    Bharat Electronics share price

    267.35
    03:59 PM | 7 OCT 2024
    -9.85 (-3.55%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rail Vikas Nigam share price

    450.30
    03:57 PM | 7 OCT 2024
    -42.8 (-8.68%)

    Jubilant Ingrevia share price

    726.45
    03:29 PM | 7 OCT 2024
    -67.8 (-8.54%)

    Railtel Corporation Of India share price

    395.90
    03:50 PM | 7 OCT 2024
    -35.65 (-8.26%)

    Garden Reach Shipbuilders & Engineers share price

    1,536.55
    03:44 PM | 7 OCT 2024
    -122.25 (-7.37%)
    More from Top Losers

    Finolex Industries share price

    294.10
    03:56 PM | 7 OCT 2024
    22.45 (8.26%)

    CG Power & Industrial Solutions share price

    758.75
    03:58 PM | 7 OCT 2024
    39.95 (5.56%)

    Astrazeneca Pharma India share price

    7,775.50
    03:29 PM | 7 OCT 2024
    343 (4.61%)

    Blue Dart Express share price

    8,650.45
    03:44 PM | 7 OCT 2024
    347.05 (4.18%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,675.000.00
      Chennai
      77,681.000.00
      Delhi
      77,833.000.00
      Kolkata
      77,685.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Industry

        HomeMarketsloanPremiumMint Shorts