by Arpit Bansal, Director and CEO, La Wisteria
Economic growth, rising personal wealth, and a desire for urbane living are altering the course of the Indian real estate market. Nowhere is this shift more apparent than in the country’s Tier I cities, where the demand for ultra-luxury homes is accelerating at an unmatched pace. Metropolitan powerhouses such as Mumbai, Delhi-NCR, and Bengaluru are witnessing a notable surge in high-end residential properties, which is further redefining not just where people live, but also how they aspire to live. In light of these developments, it is crucial to understand the major trends fuelling this wave.
Economic progress and wealth creation
In the past few decades, India has showcased noteworthy economic performance led by the rise in the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). The number of Indian high-net-worth individuals (HNWIs), those having assets of more than $10 million, grew by 6% in 2024, as per the Knight Frank Wealth Report 2025. Looking ahead, the section is projected to rise to 93,753 by the year 2028. In time, the fast growth of this population is influencing the appetite for ultra-luxury homes, since these properties are not purely assets but replications of social stature, individual taste, and financial prudence.
Shift in investment choices
Many have started to categorise luxury real estate as a stable asset that can promise capital appreciation and lifestyle returns. This tendency can be completely traced since luxury apartments valuing greater than INR 1 crore led sales in 2024, going beyond 50% for the first time ever in the country. Moreover, during instances of inflationary pressures and volatile equity markets, ultra-luxury homes often become a tangible hedge against market volatility, valued for their controlled supply and location-centric appeal. Markedly, average annual residential launches in the post-pandemic times spiked by around 47% in comparison to the 2010–2019 period. Given this demand, quite a few developers are laying more emphasis on premium and luxury housing projects, with year-on-year launches increasing by 101% and 68%, respectively.
Prime locations leading the demand
Desirability in ultra-luxury real estate is entirely intertwined with location. High-value micro-markets such as Malabar Hill, Pali Hill, and Altamount Road in Mumbai, Golf Course Road and DLF Phase 5 in Gurugram, and Koramangala and Indiranagar in Bengaluru continue to command premium pricing. These neighbourhoods are marked by exclusivity, proximity to business districts, along with exceptional infrastructure. The same drift can be traced in the launch of new residential properties across the top 7 cities (Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune), which reached a record-high during the year 2024.
Lifestyle improvement and aspirational living
Now, homebuyers have become exceedingly perceptive. Experiential living matters most to them, particularly those properties which offer a balance of design innovation and facilities such as private plunge pools, smart home automation, wellness centres, concierge services, along with artfully curated surroundings. In view of this, projects are not just evaluated by cost per square foot, but also by the quality of life they appear to deliver.This approach is mainly evident in emerging ultra-luxury developments across India.
A peek into the future
The road ahead for India’s luxury residential real estate market looks promising. Several macro and microeconomic influences are supporting its growth trajectory. The market is likely to reach USD 105 billion by 2030, rising at a CAGR of almost 15% during the forecast period 2025-30. Furthermore, the rapid expansion of global business hubs in Indian metros is bound to create a new class of young millionaires. The trend of returning non-resident Indian (NRI) buyers who are looking to re-invest in India’s luxury property market is also on the rise. Ongoing infrastructure developments will boost accessibility to premium zones in times to come. Thus, developers are recalibrating their strategies to understand and respond to this demand by launching projects with an emphasis on architectural innovation, location uniqueness, ESG compliance, and curated lifestyle offerings.
In a nutshell, it can be said that India’s Tier I cities are seeing the rise of a new course of real estate: ultra-luxury homes that combine aesthetics, functionality, and exclusivity. Led by the country’s economic vitality, changing investor mindset, and a distinct focus on quality living, these homes will redefine urban residential experiences. So, whether it is about a sea-facing penthouse in South Mumbai or a heritage-infused villa in Bengaluru, it is evident that luxury real estate is maturing, diversifying, and elevating through every possible facet in India.
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