Luxury houses eye India, but barriers remain
India's luxury real estate market is having a moment that would make even the most jaded investor sit up straight—we're talking 85% year-on-year growth in the first half of 2025 with nearly 7,000 units sold across top cities. Yet despite this gold-rush mentality, international luxury brands and developers are discovering that India's market, while glittering on the surface, remains stubbornly complex beneath. High import duties, regulatory hurdles, and the need to compete with homegrown developers who intimately understand local preferences mean that global luxury players can't simply parachute in with their playbooks from Paris or Dubai.
The paradox is striking: India's luxury housing segment is booming because of strong economic fundamentals, growing HNWI and NRI wealth, and favorable government policies like the Union Budget 2025 initiatives. Delhi-NCR alone accounted for 57% of luxury sales, with premium homes priced above ₹1 crore now representing 62% of total residential sales in 2025—a dramatic shift from 48% just a year prior. The sector is projected to reach $105 billion by 2030, making it an undeniably attractive market. However, barriers including high duties on luxury goods, intense local competition, and the complexity of navigating India's regulatory environment continue to challenge international players seeking to establish footholds in this expanding market.
