Report | Intelligent Investment

India's Luxury Real Estate - Where Opulence Meets Opportunity

March 13, 2024 15 Minute Read

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India is witnessing a significant surge in demand for luxury goods and residences. This growth is fuelled by a burgeoning affluent class with a growing desire for sophisticated living experiences. This report delves into this dynamic market and explores its impact on the real estate sector.


Luxury Retail: A Flourishing Landscape


Since 2020, there has been a notable upward trend in retail space take-up from the luxury category, which experienced an exponential growth of 162% Y-o-Y in 2023. Established luxury brands are capitalising on this growth by expanding their presence in major metropolitan cities and strategically entering new markets.


A confluence of rising disposable incomes due to economic growth, a growing desire for sophisticated lifestyles, and the enduring influence of cultural heritage that values luxury and exclusivity is expected to propel the luxury retail sector forward.


Luxury Residences: Evolving to Meet Aspirations


The Indian luxury residential market mirrors the trends in retail, offering a wider range of premium options beyond traditional bungalows. In 2023, the luxury housing segment experienced significant growth, with sales quadrupling at a 75% Y-o-Y increase. New launches in the luxury segment also increased, reducing unsold inventory levels.


The pandemic's influence on security and community living has fuelled the popularity of branded residences, penthouses, sky villas, and independent floors within well-equipped townships. This segment witnessed a significant revival in 2023, driven by high-net-worth individuals (HNIs) seeking spacious homes with enhanced security features. Mumbai currently leads the luxury housing market, followed by Delhi-NCR and Hyderabad.


India Real Estate Investment Market: Overview of 2023


The investment activity in the real estate sector experienced a resurgence in the latter half of 2023, witnessing a notable increase of about 54% in capital inflows compared to the first half of the year. However, the year concluded with a marginal decline of approximately 5% Y-o-Y, reaching a total of USD 7.4 billion. This dip can be attributed to delays in decision-making and a cautious sentiment surrounding capital deployment.


This report offers a comprehensive analysis of these trends and more, exploring the key factors shaping the ascent of Indian 'Luxe RE' and the exciting opportunities it presents.


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