August 3, 2023

Luxury Segment Housing Sales Witness a Surge in Top Seven Cities of India


In recent years, India's real estate market has experienced a significant transformation, particularly in the luxury housing segment. As per reports published in The Hindu newspaper, the top seven cities in the country have witnessed an upward trend in luxury segment housing sales. This surge can be attributed to various factors, such as increasing disposable incomes, evolving lifestyles, and the desire for opulent living experiences. In this blog, we will delve deeper into the factors contributing to the rise in luxury segment housing sales, explore the key cities that are leading this trend, and understand the implications for the Indian real estate industry.

I. Factors Driving the Surge in Luxury Segment Housing Sales:

1. Increasing Disposable Incomes:
- The rise of the middle and upper-middle-income class in India has led to an increase in disposable incomes.
- People are now willing to invest in luxurious properties as a status symbol and to enhance their quality of life.

2. Evolving Lifestyles:
- Rapid urbanization and globalization have led to evolving lifestyles and aspirations among the Indian population.
- Luxury housing caters to the growing demand for modern amenities, privacy, security, and exclusivity.

3. Desire for Opulent Experiences:
- The Indian consumer now seeks unique experiences and is willing to pay a premium for properties that offer luxurious amenities such as spas, gyms, rooftop gardens, concierge services, and smart home automation.
- Developers are focusing on creating residential projects that offer a holistic lifestyle experience to cater to these demands.

4. Investments and Returns:
- The luxury housing segment also attracts investors who see real estate as a long-term investment with potential high returns.
- The stability of the luxury segment and the potential for capital appreciation make it an attractive investment option.

II. Top Seven Cities Leading the Luxury Housing Sales Trend:

1. Mumbai:
- Mumbai, the financial capital of India, boasts many high-net-worth individuals.
- Areas such as South Mumbai, Bandra, and Worli have witnessed a surge in luxury housing sales due to the presence of premium properties, stunning sea views, and excellent connectivity.

2. Delhi-NCR:
- Delhi, along with its surrounding regions of Noida, Gurugram, and Faridabad, has a significant demand for luxury housing.
- The city attracts diplomats, government officials, and affluent professionals who seek luxurious residences with proximity to social infrastructure and amenities.
- A similar trend prevailed during the April-June ’23 quarter in the luxury housing segment across the top cities registering a 121% Y-o-Y increase in sales. It saw sales of 3,100 luxury housing units compared to 1,400 units during the same quarter last year, it jumped three-fold in Delhi-NCR.

3. Bengaluru:
- Bengaluru has emerged as a major IT hub, attracting many high-income professionals.
- Areas like Whitefield, Indiranagar, and Koramangala have witnessed heightened demand for luxury housing due to the presence of high-end amenities and proximity to major IT parks.

4. Chennai:
- Chennai has seen a rise in luxury housing sales due to an increase in the number of professionals and non-resident Indians (NRIs) returning to the city.
- Premium localities such as Anna Nagar, Adyar, and Nungambakkam have witnessed substantial sales growth in the luxury segment.

5. Hyderabad:
- Hyderabad's thriving IT industry and the presence of multinational companies have fueled the demand for luxury housing.
- Gachibowli, Banjara Hills, and HITEC City are prominent areas witnessing substantial sales in the luxury segment.
- While luxury sales in Hyderabad increased by 20 times.

6. Pune:
- Pune has witnessed a surge in luxury housing sales due to the presence of a young and affluent population, including many IT professionals.
- Areas such as Koregaon Park, Kalyani Nagar, and Boat Club Road offer luxurious living experiences and attract high-end buyers.

7. Kolkata:
- Kolkata has also witnessed a rise in luxury housing sales, with many affluent individuals investing in premium projects.
- Localities like Alipore, Ballygunge, and New Town have seen increased demand for luxury properties due to modern amenities and excellent connectivity.

III. Implications for the Indian Real Estate Industry:

1. Boost to Developers:
- The rise in luxury segment housing sales provides a boost to real estate developers, who can focus on creating premium projects to cater to the demand.
- A higher profit margin and potential for value appreciation make the luxury segment an attractive proposition for developers.

2. Economic Growth:
- The surge in luxury housing sales not only benefits the real estate sector but also contributes to the overall economic growth of the country.
- Increased real estate activities result in job creation, boost related industries, and generate revenue for the government.

3. Enhanced Infrastructure:
- The demand for luxury housing drives the development of associated social infrastructure such as premium retail outlets, restaurants, and entertainment zones.
- This leads to the overall improvement of infrastructure in the respective cities, making them more attractive for potential buyers.


The luxury housing segment in India is witnessing remarkable growth, driven by factors such as increasing disposable incomes, evolving lifestyles, and the desire for opulent experiences. The top seven cities, including Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata, have become hotspots for luxury housing sales. This trend not only benefits developers and investors but also contributes to economic growth and enhances overall infrastructure. The Indian real estate industry must continue to adapt and cater to the changing demands of luxury homebuyers to sustain this positive momentum in the luxury segment. Overall, in the residential sector, during January - June ’23 period, a total of 154,000 units were sold, and over 151,000 new units were launched across all categories. During this period, sales increased by about 3% compared to the same period a year ago, whereas new launches recorded a growth of 9% Y-o-Y basis, highlighting a substantial rise in the newly launched residential properties compared to the corresponding period in the previous year.

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