Residential Real Estate Market Jumps High in 2024, With Luxury Housing Demand Remains Strong

Residential real estate in India witnessed a major boom in 2024. Luxury housing does not seem to be slowing down, and according to the latest CBRE India Market Monitor, over 3,00,000 housing units sold for the second consecutive year along with the launch of more than 2,80,000 new units. The report reveals that cities such as Mumbai, Gurugram, and Bengaluru continue to be hotspots for premium properties, contributing heavily to sales.

Major driving factors behind luxury homes are changes in preferences among the buyers and changes in perceptions toward homeownership. As revealed by Aakash Ohri, Joint Managing Director, DLF, demand for luxury property shows deeper realization regarding ownership of the home, which can be attributed more so in NCR with very exceptional growth witnessed in luxury housing. Sales in the luxury segment increased to 45% in the first half of 2024 from only 3% in 2019. Released in New Delhi in 2022, a DLF ONE Midtown sees great appreciation in value and currently rates at INR 24,675 per square foot.

It suggests a larger transition in India’s luxury realty market, long considered a niche segment. Now, ultra-luxury and luxury categories represent a significant contributor to the total sales of the market. Consumers, including UHNIs, corporate executives, and startup founders, are keen on homes designed with smart features such as a smart home system, high-level security, and premium amenities.

Demand is concentrated mostly in Mumbai, Gurugram and Pune, where the three cities accounted for over 62% of transactions through 2024. Developers have been quick to respond to this demand, hoping to ride it by opening novel luxury projects targeted to these buyers. For instance, Tribeca Developers’ luxury offering, The Edge in South Mumbai sold out in one month, marking the first fully sold-out project for that company.

In 2024, Mumbai and Gurugram dominated the ultra-luxury housing market, accounting for a whopping 84% of transactions. Developers like Tribeca are set to expand their luxury portfolios across major cities in 2025 to redefine the very nature of opulence and exclusivity in India’s real estate landscape.