HNIs, NRIs to rule India's luxury housing market: FY25 realty trends decoded
- IBEF
- December 17, 2024
The luxury and ultra-luxury residential market is expected to experience robust growth in FY25, driven by high-net-worth individuals (HNIs) and non-resident Indians (NRIs). A clear preference for premium offerings will increasingly shape the sector, with demand for plotted developments, villas in gated communities, and vacation homes remaining strong throughout FY25. Enquiries in these segments and rising housing prices—which have grown 11% in FY24- are likely to stabilise the residential market, particularly in the affordable housing segment. Developers are expected to recalibrate their strategies, focusing on ready-to-move-in properties and projects from reputed developers with proven execution capabilities.
The real estate market in Tier-II and Tier-III cities will expand rapidly, fuelled by infrastructure development, increased tourism, and growing employment opportunities. As established developers enter these markets, the real estate activity in emerging cities such as Amritsar, Ayodhya, and Tirupati will gain momentum. The Build-to-Rent (BTR) segment, spurred by urbanisation and changing lifestyles, is expected to grow, with properties offering contemporary living spaces and amenities appealing to niche investors. The senior living market, valued at US$ 2-3 billion (Rs. 16,972 – 25,458 crore) in FY24, is poised for significant expansion, potentially reaching US$ 10-12 billion (Rs.84,860 – 101,832 crore) by FY30, driven by India’s aging population. Additionally, smart, and sustainable homes are becoming increasingly popular, with a focus on eco-friendly materials, energy-efficient systems, and green spaces.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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