6 Facts That Prove India's Luxury Housing Market Will Soar in 2025

The luxury housing market in India has witnessed an extraordinary boom in 2024, setting the stage for an even more promising 2025. Ghar presents six pivotal facts highlighting the market's transformation and what lies ahead for premium living.

1. Luxury Housing’s Market Share Continues to Expand

In 2024, luxury housing contributed 16% to India’s total housing sales, a substantial rise from just 6% in 2019. With a 37.8% year-on-year sales increase during the first nine months of 2024, the segment has established itself as a dominant force. Real estate insiders anticipate that 2025 will see further growth, supported by high demand and increased launches in the premium segment, which made up 19% of new projects in 2024.

2. NRIs and UHNWIs: The Power Buyers

Non-resident Indians (NRIs) are expected to continue driving demand in 2025, leveraging favorable exchange rates to invest in India’s premium housing market. Ultra-high-net-worth individuals (UHNWIs), whose population in India grew by 6.1% from 2022 to 2023, will play an even greater role in 2025. Projections indicate a 50.1% increase in UHNWIs by 2028, from 13,263 in 2023 to 19,908, signaling a sustained appetite for luxury real estate. Both NRIs and UHNWIs view luxury homes as a blend of sound investment and personal lifestyle enhancement.

3. Post-Pandemic Preferences Redefine Homes

The desire for spacious, amenity-rich homes, sparked during the pandemic, remains a key trend going into 2025. Buyers now prioritize homes with modern amenities like EV charging stations, wellness areas, and green energy solutions. Affluent buyers are increasingly drawn to residences offering exclusivity, such as private clubs, in-house fine dining, and smart home technologies.

4. Gated Communities and Premium Amenities Lead the Charge

The demand for gated communities that combine safety, exclusivity, and top-tier amenities is expected to surge in 2025. Features like enhanced security systems, eco-friendly designs, and health-focused amenities remain a top priority for buyers. Larger carpet areas and homes with sustainable living options further cater to the evolving tastes of affluent homebuyers.

5. Infrastructure Growth Fuels the Luxury Market

In 2025, city infrastructure development will play a crucial role in boosting demand for luxury properties. Expanding metro networks, improved connectivity, and urban transformation projects are attracting high-net-worth buyers to prime locations. Combined with a bullish stock market and sustained interest from NRIs, the growth trajectory is set to remain strong.

6. Experts Predict a Brighter 2025 for Luxury Real Estate

Real estate professionals are confident that the upward trend in luxury housing will accelerate in 2025. The rising demand for sustainable designs, wellness-focused features, and high-tech homes aligns with buyers’ increasing preference for holistic living experiences. As India’s economy grows and infrastructure develops, luxury housing is expected to remain a cornerstone of the real estate market in 2025. 

Key Facts and Figures: India’s Luxury Housing Market

Market Share and Growth 2024

Luxury Housing Share: 16% of total housing sales (up from 6% in 2019).

YoY Sales Growth in 2024: 37.8% increase during the first nine months.

New Launches in 2024: 19% of all projects belonged to the luxury segment.

Key Demographics Driving Demand

UHNWIs in India:

2022: 12,495

2023: 13,263 (+6.1%)

2028 (Projected): 19,908 (+50.1%)

Definition of UHNWI:

Individuals with a net worth of USD 30 million or more.

Buyer Preferences and Trends Post-Pandemic Shifts:

Demand for larger homes with dedicated office spaces and multi-functional layouts.

Preference for homes with advanced amenities like EV charging, wellness areas, and private clubs.

Popular Amenities in 2025:

State-of-the-art security systems, green energy solutions, health-focused designs.

Economic and Market Drivers Favorable Exchange Rates:

Encouraging NRI investments.

Infrastructure Development:

Urban transformation, metro expansions, and better connectivity boosting premium property demand.

Bullish Stock Market: Driving confidence in real estate investments.

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