Authored by: Jasna Bedi, CMO of BCD Group
India’s luxury housing industry has entered a golden period with luxury housing sales reaching record-breaking figures.
An ANAROCK report reveals that luxury homes sold in India’s top seven cities in Q1 23 have more than tripled over the past five years. Likewise, a Knight Frank report shows sales of homes priced at INR 1 crore and above increased significantly in H1 2024 and accounted for 41% of overall sales, up from 30% in H1 2023. This indicates a growing trend towards luxury living spaces.
The same report also suggests a YoY increase of 5.8% in newly launched housing projects, which has led to an additional supply of around 183,401 houses in H1 2024. This growth in new supply confirms that real estate developers are seizing this opportunity by launching uber-luxurious residential projects.
India’s luxury housing segment is not just exclusively accessible to HNIs and UHNIs.
Increasing disposable incomes have enabled even the middle class to consider such properties. The latest industry reports indicate that sales of luxury homes have surpassed those of affordable housing with a significant portion of buyers concentrated in the INR 45 lakh to INR 1.5 crore price range.
Now let’s check out the factors encouraging this growing appetite for upscale residences among aspirational homebuyers:
The Growing Demand for Exclusivity & Privacy
Elite homebuyers usually have a refined taste. They prioritise homes in prime locations that offer privacy, exclusivity, and security. This trend picked up with the rise of social distancing norms and remote work during the pandemic.
Changing Lifestyle Preferences
Today’s globetrotting homebuyers are more exposed to global living standards, which also raises their expectations about homeownership. Hence, they prefer opulent houses with expansive areas and brilliantly designed architectural layouts integrated with art and culture as focal points, as well as world-class amenities. Exclusive luxury-themed homes are also gaining traction, especially among GenZ homebuyers who prefer exploring bohemian, minimalist or eclectic design styles.
They also prefer personalised decor, bespoke furniture, and art collections in their homes that perfectly reflect their personality. Developers are responding to such demands by incorporating exclusive features into their residential projects to create a truly exquisite living experience. In other words, these high-endhomes offer the comforts that appeal to customers who prefer convenience and luxury.
Luxury Homes Serve as Status Symbols
Neo-rich homebuyers are attracted to luxury housing as it serves as a status symbol. They also aspire to be part of a high-end social scene through networking opportunities. Luxury apartments and homes host lavish parties, charity events, and other social gatherings, thus providing residents with a platform to meet affluent individuals, build new connections, and cultivate a sense of belonging to an elite community.
A Tech-Driven Lifestyle
PropTech is significantly redefining how homeowners experience luxury living. Smart homes are now characterised by automated lighting, advanced security installations and voice-activated systems. Furthermore, integration of smart technology in the global smart home market will be the primary driver of luxury real estate’s future growth rate which is expected to grow at a CAGR of 10.67% between 2024 and 2028.
Additionally, PropTech tools powered by VR and AR facilitate immersive 3D virtual tours to luxury living spaces, thus making it possible for buyers to explore their dream homes virtually. Additionally, as tech-driven luxuryhomes adapt to the demands of remote work, high-speed internet and customised workspaces are becoming ubiquitous amenities.
Sustainable Luxury in Luxurious Life: A Must-Have Aspect
Since modern homebuyers are more vigilant and environmentally conscious, they show a strong preference for natural home settings. Global warming and the need to reduce carbon emissions are driving this awareness among buyers. Thus, features like rain water collecting systems, solar panels, LED lighting, well-kept gardens, renewable energy systems, and greywater recycling solutions are becoming integral features of high-end homes. Additionally, sustainable luxury homes are built of eco-friendly building materials, such as bamboo flooring, repurposed wood, and energy-efficient glass, to improve their indoor environment.
Furthermore, modern luxury homes incorporate biophilic features to reignite residents’ connection with nature. India Green Building Council affirms that green building techniques can reduce energy use by 30% and water consumption by 30-50%. This explains why green buildings are becoming popular with luxurybuyers who also care about the environment.
Wellness-Centric Designs for Health and Wellbeing
The post-pandemic era has changed how the world looks at health in the luxury real estate sector today. Affluent buyers nowadays prioritise homes that offer wellness-focused amenities. Private gyms, meditation rooms, outdoor lounges, jogging tracks, walking trails, parks, swimming pools, spa-inspired bathrooms, saunas, and similar health and mood-boosting features are the new luxury lifestyle features.
Final Thoughts
These trends are driving India’s luxury housing sector towards a bright future. 71% of the country’s wealthy home buyers are planning to invest in luxury property within two years, reveals Sotheby’s International Realty (ISIR) survey.
This optimism also attracts NRIs to invest in luxury homes. The present state of play in the Indian luxury residential segment is quite fascinating. The demand for luxurious homes will continue to grow as more Indians move up into the affluent class. This is a golden era for those who want it all, and real estate developers are responding proactively by fulfilling these aspirations.
About Jasna Bedi
Jasna Bedi is the Chief Marketing Officer of BCD Group and leads the Group’s marketing, advertising, and public relations endeavours. Jasna is also the Founder of Casa Di Lusso, an exceptional interior design company that brings together specialists from various verticals, including renowned interior designers and artists for tailor-made interior design solutions that are both aesthetically pleasing and functionally efficient. Jasna also has experience working with national and international brands such as Roberto Cavalli, Boca Do Lobo, and Missoni to name a few.
One of Jasna’s remarkable qualities is her unwavering commitment to transforming her clients’ visions into tangible reality and most importantly, in a timely fashion. She approaches every project with the same dedication and precision, ensuring every design reflects the unique essence and needs of the individual or family it’s created for. A standout feature of Jasna’s design philosophy is her focus on creating multifunctional interior spaces, and she firmly believes that home is a sanctuary that accommodates various aspects of life.
Jasna holds an MBA in Human Resources and is based out of Delhi. Previously, she worked with the advertising firm Ogilvy & Mather and went on to work in PR with Perfect Relations. Jasna has written for many national dailies including Asian Age, Mumbai Mirror and Deccan Herald.