by Dennis Ebenezar, Founder & Managing Director, Deejos
The concept of luxury homes has gained widespread momentum in India, especially in the southern regions. Previously, this sector was dominated by ultra-high-net-worth individuals and non-resident Indians (NRIs). However, the industry has attracted various affluent professionals and entrepreneurs in recent times. Moreover, the demand for large and independent houses with world-class facilities has skyrocketed. Factors like evolving lifestyle expectations, increasing disposable incomes and a desire for exclusivity have contributed to this market growth.
Today, people increasingly prefer large living spaces, private gardens and wellness-focused architecture. As a result, developers are building customised homes, integrated with smart home technologies and high-end architectural components. From high-rise apartments to standalone villas, luxury is evolving at a rapid pace. By ensuring personalisation and comfort in homes, this shift is transforming South India's luxury real estate market.
Evolution of luxury real estate
Cities in southern India like Bangalore, Chennai and Hyderabad are witnessing a novel trend. Developers are now focusing more on fully custom-built homes that reflect individual preferences and lifestyles. This is because of the demand of affluent homeowners seeking complete control over their homes, including architectural design and interior finishing. Precisely, this includes large balconies, private pools and custom home theatres. Developers who cater to this demand are proposing tailored designs, helping homeowners to integrate various international elements. This may include amalgamating Moroccan, Mediterranean and Scandinavian aesthetics into homes. In this way, luxury homes in southern India are going beyond functionality; they are rather becoming spaces that blend both aesthetics and comfort.
Large spaces, larger value
Rather than investing in a ₹1.5 crore 3BHK apartment, modern-age buyers are preferring 5,000 sq. ft independent homes, including the cost of the plot. This shift is motivated by the realisation that bigger and stand-alone homes offer better value, increased privacy and improved lifestyle advantages. Usually, these homes have home offices, gyms, private movies and terrace gardens.
As cities expand, the probability of owning a luxurious independent property increases. Developers are thus providing turnkey solutions, helping buyers to build quality houses without navigating the challenges of planning and implementation.
Increasing demand in tier-2 cities
The demand for luxury homes is no longer restricted to metro cities. Tier-2 cities like Coimbatore, Pondicherry and Mysore are now becoming new luxury real estate hotspots. Buyers in these cities want high-end designs, premium construction and exceptional facilities similar to those found in metro cities. Concurring to a PropEquity report, property values in Coimbatore have seen an annual increase of 36 per cent in 2024. This expansion is being driven by customer desires for high-end designs, premium construction, and world-class amenities equivalent to those found in major metro cities.
Smaller size, high-class style
Luxury is no longer about size; it's about exclusivity, clever design and exceptional craftsmanship. Many buyers increasingly value distinctive architectural elements above mere size. Developers today build houses as small as 2,400 sq. ft with high-end amenities like double-height ceilings, imported marble floors and smart automation systems to maximise utility and comfort.
This trend towards minimalist but sophisticated living spaces has gained momentum in southern cities, with homeowners choosing modern infrastructure designs. This further implies that a well-designed, small luxury house can even provide the same lavish experience as a giant estate if created with care and precision.
Wellness: The new luxury
Post-pandemic, homeowners are placing greater emphasis on health and well-being. They now demand homes that include yoga studios, gyms, meditation centres, spa-inspired bathrooms, etc. Features like open courtyards, private green spaces and biophilic designs have also become popular in high-end residences. Moreover, affluent homeowners are investing in homes with outdoor spaces, infinity pools, landscape gardens and jacuzzi spaces to create resort-like living experiences.
Additionally, people nowadays demand modern luxury homes distinguished by high-end amenities. These include double-height ceilings, spectacular chandeliers and large-format vitrified tiles. The bathrooms are also expected to include 4'x4' digital vitrified tiles, with toughened glass railings and fine marble floors adding to the grandeur. Not only this, but false ceilings with ambient lighting, home automation systems and private lifts have all become popular features of luxury house design. Since modern buyers not only expect structural quality but also complete interior solutions, luxury houses are becoming more popular across Southern India.
Transformation of real-estate industry in India
The luxury housing segment has significantly surpassed the affordable housing sector in India. According to a Knight Frank study, residences valued over ₹1 crore accounted for 41 per cent of all residential sales in the first half of 2024. The report also revealed that residential sales totalled 27,404 in H1, Bangalore. On the other hand, Hyderabad also witnessed 117 per cent growth in properties valued over ₹1 crore, especially in the Banjara Hills, Jubilee Hills and Gachibowli areas. Chennai also competed with the two cities by observing 12 per cent YoY (year over year) growth in residential sales, with luxury homes accounting for 28 per cent of all purchases.
While property prices in metro cities continue to rise, developers are shifting their emphasis to Tier 2 and Tier 3 locations. The key reason behind it is that they see these cities as future luxury real estate hubs.
All in all, Southern India's luxury residential market is poised to develop at a rapid pace. Factors like growing disposable incomes, improving infrastructure and changing lifestyle demands are continually contributing to this growth. As more investors seek exclusivity and technical solutions in the future, South India will be a major player in the country's luxury real estate market.
