India’s luxury housing sector, once limited to a small group of wealthy buyers, is now becoming one of the fastest-growing segments in the country’s real estate market. Larger homes, private facilities, and premium locations are no longer seen as just aspirations. For many homebuyers, these features are becoming the new normal.
A recent analysis by Crisil shows that the trend of premiumisation is getting stronger. It is expected that in 2025 and 2026, luxury homes will account for nearly 40% of all new housing launches across India. At the same time, overall sales volumes are projected to grow by 5–7%, and average prices are likely to rise by 4–6%. For developers, this means a clear shift towards high-margin projects, aligning with the changing expectations of buyers and the increasing spending power of Indian families.
There are many factors driving the surge in luxury housing demand. India’s rising domestic wealth has created a bigger pool of buyers who can afford premium homes. Non-Resident Indians (NRIs) are also playing a key role, encouraged by favourable currency exchange rates, investment opportunities, and the desire to own a property back home.
According to a report by JLL, Delhi-NCR has seen a 9% increase in luxury housing sales during the first half of 2025 compared to the same period in 2024. The region now accounts for 65% of all luxury housing sales in the country’s top seven cities. Within NCR, Gurugram has emerged as the strongest hub, contributing 91% of all luxury housing sales. Infrastructure projects, like the upcoming Gurugram Metro line, are expected to further increase the appeal of these areas.
Experts believe that luxury buyers are very different from the traditional housing market. Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group, explained that today’s luxury homebuyers are often well-travelled, NRI families, or corporate executives. They compare Indian homes with international standards and want properties that reflect their lifestyle. For them, luxury means enhanced privacy, hotel-like services, open spaces, and natural light. Locations such as Golf Course Extension and Dwarka Expressway are becoming preferred destinations because of strong connectivity and modern social infrastructure.
Another major reason for the growth in luxury housing is the shift in lifestyle preferences after the COVID-19 pandemic. Many buyers now want spacious homes with private amenities that promote wellness, leisure, and a better work-life balance. Low-density living, larger layouts, and wellness spaces have become important factors influencing purchase decisions.
Developers are responding to these demands by offering new projects that include hotel-style facilities, branded residences, sustainable design, and smart features. In tier 2 cities as well, this trend is catching up. According to Umang Jindal, CEO of Homeland Group, areas like the Chandigarh–Mohali belt are witnessing strong demand from entrepreneurs, professionals, and NRIs. These buyers want homes with greenery, space, and community living, supported by infrastructure such as schools, hospitals, highways, and airports.
Vikas Dua, Founder and Director of Chintamanis Group, said that luxury homes today are about balance and livability rather than just showy designs. Features such as EV-ready parking, smart security systems, co-working spaces, and dedicated children’s areas are now part of many new launches. Buyers are seeking homes that feel modern, calm, and functional, while still connected to urban life.
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The combination of global design influence, improved infrastructure, and changing lifestyle choices has transformed luxury housing into a mainstream demand rather than a niche segment.
Looking ahead, experts say that India’s luxury housing market is expected to remain strong for at least the next two years. Developers are likely to stay focused on disciplined launches, making sure that supply matches genuine demand. This careful approach will help them maintain pricing power while ensuring that projects meet the expectations of high-end buyers.
With nearly 40% of new housing launches in 2025-26 projected to be in the luxury category, the segment is moving towards becoming a dominant force in India’s real estate market. The growing appetite for premium living spaces, backed by strong domestic wealth and interest from NRIs, is likely to keep this trend alive.
In the coming years, luxury housing is expected to reflect not just wealth but also lifestyle choices, offering buyers a combination of privacy, comfort, and modern amenities. Developers, in turn, see this as an opportunity to build projects that are both profitable and future-ready, creating a new standard for urban living across India.
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