India's luxury real estate market is currently generating significant buzz, with property prices in prime locations like Gurugram sparking comparisons to those in the iconic Burj Khalifa, the world's tallest building.
DLF's ultra-luxurious residential project, The Dahlias, in Gurugram, has generated immense online buzz with its breathtaking starting price of Rs 75 crore for its smallest 9,500 sq ft unit, priced at Rs 80,000 per sqft. This staggering price tag rivals that of global luxury hotspots like Dubai's Burj Khalifa, where prices hover around Rs 75,000 per sqft. This record price parity between India's luxury real estate and global hotspots like Dubai marks a significant shift in the market.
According to Knight Frank’s The Wealth Report 2024. Mumbai is among the top 10 luxury residential markets in the world. The city is ranked at number 8 globally in terms of price growth in luxury housing. Delhi takes the 37th spot and Bengaluru 59th position.
What Marks The Shift
Industry experts attribute this surge to India's growing economic prosperity, increased consumer spending power, and a rising demand for ultra-luxurious living experiences. Moreover, developers are catering to this demand by crafting projects that rival international standards, redefining the concept of luxury living in India.
As per the market trends, the desire for larger living spaces with supreme amenities located in a prime location is more pronounced than ever.
New-age buyers prioritize homes that span over 3000 sq. ft and are well-equipped with services like valet parking, private wellness centres, smart home technology, advanced security systems, and more.
The expanding base of High-Net-Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs), has created a fertile ground for luxury consumption.
Top developers in India have seized the opportunity, rapidly scaling up their luxury developments to meet the unprecedented demand. According to a report by Cushman and Wakefield, 61% of new residential projects in Q1 2024 were in the luxury segment.
“With a growing segment of high-net-worth individuals seeking exclusive and opulent living spaces, the demand for luxury properties is expected to surge. Moreover, with the growing number of HNIs in the country, the demand for these homes will grow further,” says Ritesh Mehta, senior director, and head (north and west), residential services and developer initiative, JLL India.
India's luxury housing segment is projected to grow at a CAGR of 3%, and its prospects are strong. With this growth, Is India on track to become the global leader in the luxury real estate segment crossing all the countries in the coming years?
