Luxury houses eye India, but barriers remain
India's luxury housing market is turning heads globally, but it's not all smooth sailing. While the burgeoning demand for premium homes—especially those priced over ₹1 crore—is reshaping the landscape in metros and emerging Tier-2 cities alike, developers and buyers alike face substantial barriers. High duties, market complexities, and the challenge of balancing luxury growth with affordable housing shortages keep the sector navigating a tricky path. Yet, the trend is clear: luxury real estate in India is evolving from mere indulgence to a refined, performance-driven asset class favored by wealthy investors seeking both lifestyle and returns.
The luxury housing segment now constitutes a dominant share of India's residential sales, with luxury homes accounting for over 60% of transactions in 2025 according to data from JLL and others. This surge is fueled by affluent local buyers and NRIs who crave high-end properties offering not just opulence but also experiential excellence and environmental sustainability. Key markets like Bengaluru, Mumbai, Pune, Chennai, and Kolkata are fueling growth, with strong launches in premium and ultra-luxury categories. Despite challenges such as regulatory duties and competition from local players, India’s luxury real estate market is projected to reach $35 billion by 2030, reflecting broader economic growth and rising high-net-worth wealth. Meanwhile, the pressure to address affordable housing shortages remains a critical social and economic concern underpinning this dynamic market shift.
