LUXURY HOUSING: RISE OF NEW AFFLUENT INDIA IN 2025

As 2025 draws to a close, luxury housing has emerged as the real estate sector’s primary growth engine with a defining feature being - the dispersion of demand. Not just in established metros like Gurugram, Mumbai and Bengaluru, but Tier-2 cities too showed their capability to sustain growth, with sales values jumping up sharply amidst improvements in road networks, metro lines, and airport infrastructure. Also, no longer confined to legacy industrialists or inherited wealth, the luxury buyer’s demography ranges from a first-generation entrepreneur, startup founder to a global professional —well-travelled and brand-aware. No wonder, branded residences gained traction in 2025, reflecting an aspiration for integrated living experiences that combine design, functionality, and hospitality.

Amar Sarin, CEO & Managing Director, TARC Ltd shared his thoughts, Buyers are seeking homes that integrate wellness, technology and environmental responsibility as standard features. Well-connected neighbourhoods will continue to lead demand and developments that deliver both liveability and long-term asset value will outperform. Well-planned micro-markets with good connectivity, stable social infrastructure and limited but high-quality supply are poised to lead the next phase of growth.” Undoubtedly, the luxury homes segment has demonstrated exceptional resilience across major cities. This momentum is driven by lifestyle upgradation and a shift towards long-term value creation rather than transactional buying.

Luxury real estate in India, especially in 2025 evolved into a holistic experience. Buyers no longer seek merely a residence, but an ecosystem that mirrors global standards of convenience, wellness, and everyday indulgence. Integrated access to fitness, wellness, dining, retail, and business facilities, reducing daily friction and saving time, has become the new definition of luxury. Demand for amenity-rich, and high-quality luxury projects rose sharply this year, due to limited supply and rising aspirations. Luxury Homes: A Strategic Asset of the Year Luxury and ultra-luxury housing outperformed all other segments, driven by demand for space, privacy, branded residences, and experience-led living. Buyers today prioritise wellness, intelligent design, sustainability, advanced security, and global-quality services—well beyond just square footage. Second homes also saw strong traction, as affluent buyers sought lifestyle escapes that combine emotional value with solid investment fundamentals.

Amit Goyal, Managing Director, India Sotheby’s International Realty concurred that 2025 was a defining year for Indian real estate—marked not just by record sales, but by a clear shift in the quality, confidence, and intent of demand. “We saw buyers becoming far more discerning, strategic, and long-term in their approach. One of the most notable shifts was in buyer demographics. Alongside legacy business families, a new cohort of startup founders, next-generation entrepreneurs, and senior corporate leaders emerged as a powerful force in the market. Many channelled gains from buoyant equity markets, IPOs, and renewed PE–VC activity into real estate— one of the few asset classes that allows efficient capital gains reinvestment under Sections 54 and 54F, while also offering lifestyle value and generational legacy.” What’s more, strong momentum in branded residences this year indicates a shift towards globally benchmarked living. Collaborations with international hospitality, fashion and design brands added credibility, consistency and resale value. Wellness-driven amenities—spa zones, private lounges, yoga decks, air and water purification systems, biophilic architecture and low-density planning—became central to luxury positioning rather than add-ons.

Luxury residential remained at the helm throughout the year as residences upwards of ₹4 crore continued to witness steady demand.

While Gurugram has emerged as the nation’s undisputed luxury hub, Lucknow has rewritten the Tier-2 narrative with record-breaking capital appreciation.


Robin Mangla, President M3M India said, “The increasing acceptance of landmark and branded residential developments, including projects such as Jacob & Co. Residences, signals an evolution in buyer preferences toward globally benchmarked design, curated experiences, and premium living environments. These developments are not only redefining luxury housing standards but also elevating Noida’s positioning within the NCR landscape.” Commenting on Mumbai’s burgeoning luxury housing Sumit Sapru, CEO, Shapoorji Pallonji Real Estate said, “We see demand here is largely end-user driven, led by discerning buyers who value legacy locations, strong connectivity, established social infrastructure and long-term capital stability. This dynamic continues to support steady absorption and sustained value of Mumbai’s luxury housing market.”

Beyond Postcode to Experience

What is striking is how quickly new corridors are emerging as credible luxury destinations, powered by infrastructure upgrades, better planning and rising affluence. These markets are no longer peripheral—they are becoming preferred choices for discerning, investment-aware buyers. This shift reflects a more confident premium homebuyer and will define how India’s luxury housing landscape evolves over the next decade. According to Magicbricks’ India Luxury Housing Market Report 2025, several micro-markets have undergone particularly rapid transformation. Luxury’s share on the Noida Expressway has surged from 10 percent in 2021 to 47 percent in 2025, Devanahalli in Bengaluru from 9 percent to 40 percent, Ballygunge in Kolkata from 12 percent to 50 percent, and Porvorim in Goa from 19 percent to 47 percent. These steep rises reflect how infrastructure improvements, enhanced connectivity and large-scale township development are enabling luxury housing to flourish in new pockets across the country.

Mohit Goel, Managing Director, Omaxe Ltd. says, “Tier-2 cities are no longer alternatives to metros. Buyers here want the same quality of life as those in Delhi or Mumbai. Infrastructure projects like highways, airports, and metro connectivity have transformed access, while businesses are also setting up offices beyond traditional hubs. The mindset has shifted; people now expect world-class living environments right in their hometowns.”

The Year’s Noticeable Shifts

Luxury homes now form 27% of overall supply, up from 16%, as developers pivot toward larger layouts, premium specifications and integrated lifestyle amenities. Demand has strengthened alongside, rising from 14% to nearly 18% of total home-seeking activity, driven by buyers who are increasingly seeking superior design, convenience and future-ready living environments. Bengaluru currently holds a 48 percent premium share, followed by Gurugram at 43 percent, Hyderabad at 29 percent, Pune at 24 percent and Kolkata at 19 percent.

Mumbai continues to lead in absolute price terms but maintains a lower premium share at 13 percent due to widespread premiumisation across its mainstream housing stock. Geographically, while traditional luxury hubs such as Mumbai, Delhi-NCR and Bengaluru continued to dominate, emerging micro-markets within these cities saw heightened traction. Buyers showed a clear preference for gated, low rise or boutique luxury formats offering exclusivity over sheer scale. Importantly, demand was driven by end-use rather than speculation, leading to healthier absorption and price appreciation.

Behaviourally, luxury buyers displayed faster decision making, higher willingness to pay for quality and a clear bias towards ready or near-completion projects. Trust, governance, delivery track record and transparency emerged as critical factors, elevating branded developers and institutional-grade projects. Financially, luxury housing asserted itself as a stable wealth-preservation asset amid global uncertainty.

With India’s macroeconomic resilience, controlled inflation and deepening capital markets, real estate—especially in the luxury segment—offered both emotional and financial security. For many buyers, a luxury home represented permanence: a base for family, work, legacy and long-term investment. 51 The Shift to Intuitive Luxury: While a prestigious pin code remains a hallmark, the definition of a “prime” home is expanding. The modern buyer is looking for a “hospitality led” lifestyle. This has given rise to the professionally managed residence such as spaces where concierge services, discreet security, and world-class wellness facilities are woven into the fabric of daily life. For the globally mobile Indian family, luxury is now defined by the time saved and the seamlessness of their domestic environment.

The Rise of Prime Residences in 2025

The evolving landscape reflects how luxury is no longer defined solely by exclusivity; it is increasingly characterised by design sophistication, sustainability integration, technology-enabled living and community-oriented environments that appeal to affluent, experience driven buyers. For India’s modern wealth creators, the luxury residence has emerged as a sanctuary of “quiet confidence.” According to insights from the Kotak Private Luxury Index, the country’s most discerning families are moving away from mere opulence, choosing instead to invest in spaces that prioritize privacy, wellbeing, and a sense of enduring legacy.

A Legacy in the Making: In India’s most storied enclaves, from the heritage-lined streets of Lutyens’ Delhi to the vertical expanses of South Mumbai, the demand for “generational assets” is at an all-time high. The Index highlights that marquee transactions are about securing a piece of history. When a sea-facing duplex in Mumbai touches the ₹100 crore mark, it reflects a desire for continuity. Homes designed to be lived in today and cherished by the generations of tomorrow. Design for the Senses: The architecture of today is being shaped by “high-functioning” design. We are seeing a move toward low-density living, where natural light, private terraces or sky decks, and intuitive layouts take centre stage.

There is a growing preference for “future ready” homes, those that use sustainable, graceful materials that age beautifully, ensuring the home evolves alongside the family that inhabits it. The Rise of the ‘Lifestyle Extension’: The boundaries between the primary home and the retreat are blurring. Locations like Goa, Alibaug, and the Himalayan foothills are lifestyle extensions designed for longer stays and intergenerational gatherings. The trend toward branded serviced residences in these locales offers the perfect blend of the privacy of a home with the effortless ease of a f ive-star resort.

Conscious Stewardship: Today’s luxury is increasingly green. Sustainability is a core value. From green-certified developments to responsibly designed communities, there is a clear alignment between high-end living and environmental consciousness. It is a subtle, sophisticated approach to luxury that respects the planet as much as it values comfort. The Scarcity of Excellence: Ultimately, the allure of Indian luxury real estate lies in its scarcity. In prime micro markets where new supply is limited, a home is an act of stewardship. These are spaces that transcend market trends, offering a way of life that is as much about quiet elegance as it is about lasting stability.

For high-net-worth individuals, the focus has shifted from flipping to investing in quality and scale and new developments designed for longevity.