Premiumisation fuels India’s housing growth; Mid-income, luxury homes drive demand
- IBEF
- January 8, 2025
India's residential real estate market is experiencing a shift towards premiumisation, driven by a growing higher-income urban demographic. The trend is particularly evident in key cities such as Mumbai, Delhi-NCR, Bengaluru, Pune, and Hyderabad. As economic growth continues, homebuyers and developers increasingly focus on properties offering luxury, exclusivity, and spaciousness. Sales of apartments priced between Rs. 2 crore (US$ 233,290.56) and Rs. 5 crore (US$ 583,226.41) grew by 400% from 2019 to 2024, with an 82% increase in 2024 alone. Homes priced above Rs. 20 crore (US$ 2.33 million) saw a 270% rise since 2019, while the Rs. 1 crore (US$ 116,645.28) to Rs. 10 crore (US$ 1.17 million) segment saw a 46% YoY increase and a nearly 500% surge since 2019, according to data from Knight Frank India.
Rising disposable incomes have further supported premiumisation, an expanding base of high-net-worth individuals (HNIs), and evolving buyer preferences. Chairperson and Managing Director of Knight Frank India, Mr. Shishir Baijal, noted that the residential market has seen record sales in 2024, with the demand for higher-priced homes growing Rs. 20 crore (US$ 2.33 million) to Rs. The 50 crore (US$ 5.83 million) price segment saw sales of 245 units in 2024, with 78% sold in Mumbai. The over Rs. 50 crore (US$ 5.83 million) category recorded sales of 150 units, with Mumbai accounting for 67% of these sales. Despite price rises of 2-11% in 2024, the market remains strong, driven by rising household incomes and improvements in macroeconomic conditions. Housing sales across the top eight cities grew by 7%, reaching 350,613 units, with Hyderabad and Pune achieving all-time highs. Residential launches also increased by 6%, reflecting the market's continued growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
