The year 2024 was marked by demand for luxury real estate. With many residential projects in Noida, Gurugram, Mumbai, and other major cities being priced between ₹10 crore to almost ₹80 crore, the current housing market is clearly premium consumers focused. During the Jan-Sep 2024 period, units priced at ₹4 crore or higher saw sales increasing by almost 37.8% year-on-year. Even upcoming luxury residential projects in Delhi NCR are being developed for those who wish to buy ultra-luxurious homes in the country’s capital region.
One of the driving forces behind this demand are Ultra-High (UHNIs) & High Net-Worth Individuals (HNIs). These are people with high paying occupations who dream of premium housing that reflects their lifestyle. They seek larger homes with better facilities, such as private gyms, home offices, and expansive outdoor spaces, motivating the market towards luxurious residential real estate.
Let’s take a look at the reasons why HNIs are investing in India’s luxury housing market, thus raising the price & amenities bar for the industry.
Soaring Wealth and Lifestyle
In recent years, thanks to better career opportunities and an entrepreneurial mindset, the millennial workforce made up a significant segment of HNIs and accounted for 37% of property buyers in April 2024. Unlike older generations, millennials are more financially empowered and not just looking for a house to live in; they want a home that reflects their lifestyle and ambitions. This is why they are driving the demand for upcoming luxury residential projects in Delhi NCR and other metropolitan cities.
Capital Appreciation
Almost 45% of HNIs and UHNIs view capital appreciation as the primary reason for investing in luxury residential projects in Noida, Gurugram, Delhi, and other major cities. Considering premium housing’s prices rising over 15% in the past 3 years, the decision to invest in luxury real estate seems to be validated.
Progressive Development
India’s continual infrastructural and economic development is inviting investments from Indian as well as global HNIs. The government’s plan to develop 12 industrial smart cities across the nation is expected to further boost the premium real estate demand. As the confidence in India’s economy continues to develop and grow, investments will also rise exponentially. Additionally, with increasing land prices and a low supply of prime real estate, buyers are securing premium properties before the prices surge further.
Sustainable Choices
The global market for green buildings is expected to reach US$594.8 billion by 2027 with India playing a major role in this growth. By 2025, the Indian market for green buildings is expected to hit US$39 billion, showcasing the sector’s potential. For the newer generation of HNIs, sustainable housing is an important segment not only to reside in but also to invest in. With many upcoming luxury residential projects in Delhi NCR being developed with sustainability as a USP, HNIs are being presented with options that cater to their needs.
As we can see, HNIs are keen on planning for a secure future by investing in India’s luxury housing market. Their growing wealth and desire for premium real estate are also encouraging developers to build more ultra-luxury residential projects in Noida, Pune, and other traditionally mid-range markets. With increasingly extravagant amenities, upcoming luxury residential projects in Delhi NCR, Mumbai, Bengaluru, etc. are catering to the demands of HNIs and creating lucrative investment avenues for them.
