Increased Demand for Premium Real Estate in India Drove 41% growth in H1 2024

India’s real estate market has witnessed a remarkable transformation in the first half of 2024. Among the most striking developments is the substantial increase in demand for premium real estate, which has fueled a 41% growth in transaction volumes. As urbanization and rising disposable incomes continue to reshape the landscape, high-net-worth individuals (HNWIs) and affluent buyers are increasingly seeking out luxury living options. The question is, what’s driving this surge in demand? Let’s explore the factors that have contributed to the rise of premium real estate in India.

A New Era of Luxury in India’s Real Estate Market

The Indian real estate market has traditionally been associated with affordable housing and middle-class preferences, but the past few years have seen a marked shift. With India emerging as one of the fastest-growing economies globally, the purchasing power of its affluent citizens has surged, creating a growing demand for high-end properties.

In H1 2024, the demand for premium properties—including luxury apartments, villas, penthouses, and spacious bungalows—has seen impressive growth. Several cities, such as Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad, have reported an uptick in luxury housing sales. Buyers are no longer just looking for a place to live—they are looking for homes that provide comfort, exclusivity, and a lifestyle that aligns with their aspirations.

Factors Fueling the Demand for Premium Real Estate

There are multiple reasons behind the meteoric rise in demand for luxury real estate in India:

• Rising Affluent Population: The number of HNWIs and ultra-high-net-worth individuals (UHNWIs) in India has been increasing steadily. According to reports, India’s population of HNWIs is expected to grow at a rapid pace, pushing demand for upscale properties.
• Urbanization & Infrastructure Development: With rapid urbanization, the demand for high-end residential spaces in well-developed areas has surged. Metro cities in India are undergoing major infrastructure improvements, making them more attractive for luxury buyers.
• Economic Growth & Stable Job Market: Despite the global economic fluctuations, India’s job market has remained stable, with many working professionals finding better career opportunities. These professionals are now seeking out upscale real estate investments as a way to enhance their lifestyle.
• International Investment Flow: India’s real estate market is attracting international investments, particularly in luxury sectors. Foreign buyers, especially from countries like the UAE, the UK, and the US, are increasingly drawn to India’s luxury real estate for both living and investment purposes.
• Post-Pandemic Preferences for Space: The COVID-19 pandemic shifted people’s perspectives on their living situations. The demand for larger homes with more amenities increased, as many sought comfort and privacy during lockdowns. This trend continues to dominate the demand for premium properties.

Luxury Real Estate Trends in 2024

Premium real estate in India is evolving with the changing tastes and preferences of buyers. In 2024, several trends have emerged that highlight the future direction of this market:

• Smart Homes and Automation: Homebuyers are increasingly looking for properties equipped with the latest technology. Smart home features such as automated lighting, security systems, and climate control are becoming standard expectations in luxury properties.
• Eco-Friendly Developments: Sustainability is now a key factor in the buying decisions of affluent buyers. Developers are incorporating green building certifications and eco-friendly technologies in their luxury developments, making these properties not only luxurious but also environmentally responsible.
• Integrated Communities: Premium real estate is moving beyond individual luxury homes to include integrated communities with exclusive facilities. These gated communities often feature high-end amenities such as spas, gyms, golf courses, and private pools. Buyers are now more inclined to choose developments that offer an entire lifestyle rather than just a living space.
• Global Influence on Design Aesthetics: The influence of global architecture trends is evident in the design of luxury properties in India. Minimalistic design, open floor plans, and high ceilings are just a few features that are popular in today’s high-end homes.

Market Insights: Cities Leading the Charge

While luxury real estate is becoming a pan-India trend, some cities are leading the charge in attracting demand for premium properties. Let’s take a closer look at the cities that are driving the growth:

• Mumbai: The financial capital of India remains a hub for luxury real estate. South Mumbai, in particular, continues to be the epicenter of high-end living, with areas like Worli, Colaba, and Cuffe Parade witnessing significant demand. The region’s proximity to commercial hubs and a developed infrastructure make it the top choice for affluent buyers.
• Delhi NCR: The National Capital Region, including Delhi, Gurugram, and Noida, has seen a boom in luxury housing projects. With many multinational companies and high-net-worth individuals calling this region home, demand for exclusive properties is only set to increase. Gurugram’s Golf Course Road and Lutyens Delhi are notable hotspots for luxury residences.
• Bengaluru: Known as India’s Silicon Valley, Bengaluru has seen rapid growth in the tech sector, leading to a spike in demand for luxury homes. Areas such as Whitefield, Koramangala, and Hebbal have become synonymous with premium living. Additionally, Bengaluru’s stable climate and growing international connections make it a prime location for luxury buyers.
• Hyderabad: With its booming IT sector and growing number of affluent professionals, Hyderabad has established itself as an emerging market for luxury real estate. Localities like Banjara Hills and Jubilee Hills are now home to some of the most opulent properties in the country.

Challenges and Opportunities in the Luxury Real Estate Market

While the luxury real estate market in India presents significant growth opportunities, it also faces a few challenges. High land costs, infrastructure bottlenecks, and regulatory hurdles continue to pose challenges for developers. Moreover, the rising cost of construction materials and labour shortages have led to increased prices, further impacting affordability.

However, the market is adapting. Developers are exploring alternative building materials, and technology-driven construction methods are making high-end real estate projects more feasible. The presence of global investors and the rise of private equity firms in the Indian market are helping to mitigate these challenges and fuel further growth.

How Investors Can Benefit from the Growing Demand

The increased demand for luxury real estate presents multiple opportunities for investors looking to capitalize on India’s booming market. With steady returns expected from premium properties, especially in prime urban locations, this is an excellent time to invest in the Indian luxury real estate sector.

Additionally, the demand for second homes or vacation homes in cities like Goa, Udaipur, and Pondicherry is on the rise. Real estate investors can benefit from catering to this growing niche market, offering luxury vacation properties for affluent individuals looking to spend their time in India’s most beautiful regions.

Reliant Surveyors: Your Partner in Navigating the Premium Real Estate Market

As a leading real estate and valuation advisory firm, Reliant Surveyors is well-equipped to guide investors, developers, and homeowners through the dynamic premium real estate market in India. With our expert services in valuation, investment advisory, feasibility studies, and strategic recommendations, we help our clients make informed decisions and maximize their investments in India’s burgeoning luxury real estate sector.

Our team has in-depth knowledge of the market trends, regulatory frameworks, and evolving consumer preferences, enabling us to provide tailored solutions that ensure the best returns in the premium real estate space. Whether you are an investor looking to diversify your portfolio or a developer planning your next luxury project, Reliant Surveyors is your trusted partner in the premium real estate sector.

For a comprehensive consultation or to learn more about how we can help you navigate India’s premium real estate market, visit www.reliantsurveyors.com.