India’s luxury real estate market is growing fast. A big reason behind this growth is the rising interest from NRIs (Indians living abroad) and HNIs (rich buyers). In major cities like Delhi, Mumbai, and Bengaluru, more people are now buying expensive homes—not just to invest their money, but also to enjoy a better way of living.
This report shares what’s happening in this market, where people are buying, why they’re choosing luxury homes, how prices are changing, and what support the government is giving. It also gives a look at what to expect in the next 1 to 3 years.
Record Sales and Luxury Housing Trends in Big Cities
Huge Increase in Sales
India’s housing market has seen record sales for three years straight. In 2024, the total value of homes sold is expected to cross ₹5.1 lakh crore, with over 3 lakh homes sold. Expensive homes are leading this growth, while affordable homes are slowing down due to higher loan rates.
More Buyers for Luxury Homes
Houses priced above ₹4 crore saw a 53% rise in sales in 2024. Around 19,700 luxury homes were sold in top cities. Delhi NCR, including Gurugram, and Mumbai are the toppers in the list. interestingly, Delhi-NCR sold about 10,500 such homes, which is double from the year before. In addition, prime cities like Pune, Hyderabad, and Chennai are witnessing a sharp rise in investors’ interest in premium homes.
Builders Focus on High-End Projects
More new housing projects are now luxury-focused. In Delhi-NCR, 59% of new homes launched in 2024 cost more than ₹2.5 crore. Builders like Godrej and Lodha are seeing higher sales by offering well-planned, branded homes. Around 20–25% of buyers in new luxury projects are NRIs, showing how Indians abroad are driving this trend.
Popular Locations
Delhi & NCR
Famous areas like Lutyens’ Delhi and Gurugram’ Golf Links always induce a huge demand. Gurgaon is a major hotspot now. With areas like Golf Course Road and Dwarka Expressway (DXP), Gurgaon is the first choice of foreign investment. Like Gurgaon, Sector 150 in Noida is seen as a destination for luxury homes.
Mumbai
Buyers love sea-facing flats and penthouses in places like Malabar Hill, Worli, and Bandra. Mumbai saw most of the big-ticket home deals in 2024.
Bengaluru
Wealthy people in the tech industry are buying in areas like Whitefield and North Bangalore. Villas and big flats are in demand.
Hyderabad
Rich buyers are choosing homes in Jubilee Hills and HITEC City. More luxury launches happened here in 2024.
Pune & Chennai
Both cities are growing fast. Premium homes in Koregaon Park (Pune) and ECR (Chennai) are attracting interest.
Holiday Homes
Many HNIs are also buying second homes in peaceful locations like Dehradun, Kasauli, and Goa.
Why NRIs and HNIs Are Buying Premium Property?
Rupee Advantage
As the Indian Rupee is weaker compared to other currencies, NRIs can now buy homes in India at lower costs in dollar terms. This makes luxury homes look like a bargain.
Strong Economy
India’s growing economy and steady real estate prices are making property a safe and smart investment. Cities like Mumbai and Bengaluru are offering good returns.
Good Returns
Prices of luxury homes have been going up steadily. In Delhi, top property prices went up by around 6.7% in 2024 alone. In some cases, homes under construction appreciated by 50% in one year.
Better Lifestyle Needs
After COVID-19, more people want bigger homes with private space, home offices, and better amenities. NRIs also want a comfortable home in India for vacations or retirement.
Safety in Property
With the world facing uncertain times, many HNIs feel that real estate in India is a safe and reliable investment.
Top-Class Amenities
Today’s buyers want swimming pools, gyms, 24×7 security, and smart features. Builders are offering all these in premium homes.
Trust in Big Brands
Buyers feel more confident in top developers who have a strong track record and follow rules. Laws like RERA have made the buying process more transparent and safer, especially for NRIs.
Pricing Trends in Key Markets
Prices Are Rising
Home prices, especially for luxury units, are going up. Delhi saw a 6.7% rise in 2024. Mumbai and Bengaluru also saw steady growth.
Record Deals
Homes are selling at ₹1 lakh or more per square foot in cities like Mumbai. Some bungalows are being sold for over ₹200 crore.
Bigger Homes Sell More
Instead of buying more homes, buyers are spending more on bigger and costlier units. Luxury homes are making up a large share of the market’s value.
Rentals Are Picking Up
While rental returns are still moderate (around 2–3%), NRIs are earning some income by renting out luxury flats. This helps cover expenses while the home increases in value.
City Differences
Delhi-NCR saw the fastest rise in luxury sales. Mumbai stayed the costliest market. Pune, Hyderabad, and Chennai are catching up quickly.
Government Support and Policy Impact
Buyer-Friendly Laws
RERA ensures builders deliver on time. It protects buyers and especially helps NRIs who are not in India to check everything themselves.
Easy for NRIs to Buy
Government rules now allow NRIs to buy multiple residential or commercial properties (except farm land). They can also send rent income abroad after paying tax. Online help, special services, and virtual tours make it easy for them to invest.
Tax Benefits
NRIs get the same home loan tax benefits as people living in India. Lower stamp duty (in some states) has also helped buyers reduce upfront costs.
Capital Gains Rule Change
From July 2024, sellers will pay a flat 12.5% tax on profits from property sale. This may affect long-term returns slightly but isn’t expected to reduce buying interest much.
Infrastructure Boost
Projects like expressways, metro lines, and smart cities are making new areas attractive for luxury homes. 100% foreign investment is also allowed in construction, attracting international players.
Future Outlook – 1 to 3 Years
Growth to Continue
Experts say the demand for luxury homes will remain strong. With more people becoming wealthy and NRIs looking at India again, sales are expected to grow in 2025 and beyond.
Wealth Is Growing
India now has more millionaires and billionaires than before. This is expected to increase further. NRIs are also investing more in India. For example, one top builder said NRI buyers made up 23% of their sales in 2024, up from 5% two years ago.
Some Caution Ahead
After big growth, the market may cool down a little. A recent survey showed fewer rich buyers plan to buy luxury homes right away. But long-term demand is still very strong.
New Hotspots
Metropolitan cities will continue to lead. This list has Mumbai, Delhi, Bengaluru, and Hyderabad. Areas with better roads, airports, and connectivity will see faster price growth.
Government’s Continued Role
Future policies may cut interest rates if inflation drops. New infrastructure and smart projects will make premium areas even more attractive.
Conclusion
India’s luxury real estate boom is not just a trend—it’s a shift. NRIs and HNIs are now more confident in buying high-end homes, whether for returns, comfort, or pride. Cities are becoming more modern, homes are getting smarter, and laws are making things safer. If you’re an investor or a homebuyer looking at premium properties, the next few years offer big opportunities. India’s luxury property market is not only growing—it’s growing with purpose and strength.
Sources: Economic Times, Business Standard, Moneycontrol, Hindustan Times, Realty+, Knight Frank & JLL, and CBRE.