Inside India’s 2025 luxury home rush: Where the richie rich are investing

India's luxury real estate space has seen a remarkable surge in the last few years, but the segment has seen some early signs of fatigue lately. However, the experts believe that this hiccup is temporary and there are no signs of demand slowdown in the luxury real estate segment which are priced above Rs 5 crore and above.

Strong and consistent demand in the higher ticket sizes have been driving overall sales volumes in the market over the past few years. According to the data from Knight Frank, super-luxury segment is witnessing some signs of slowdown after a robust demand in the last few years, but the unsold inventory leaves lesser reasons to worry.

The market needs 4.9 quarters (QTS) to consume the existing unsold inventory in the units priced over Rs 10 crore, which is a very healthy scenario, said Vivek Rathi, National Director of Research at Knight Frank India. However, he flagged that the luxury segment of units priced between Rs 20-50 crore is at an elevated QTS level of 17.1 and needs to be watched closely.  

Why focus on luxury real estate?

According to a recent Anarock report, NCR recorded a 51 per cent drop in unsold housing inventory. Among its cities, Noida saw the sharpest reduction in unsold homes, down by 72 per cent, while Greater Noida recorded a 56 per cent fall in unsold stock over the same period. In terms of housing supply, too, NCR saw a 44 per cent rise compared to 2023.

Properties in well-connected, infrastructure-rich locations further amplify this appeal, attracting both HNIs and NRIs looking for future-ready assets, said Amit Modi, Director at County Group. Luxury is no longer niche; it’s a strategic growth avenue that aligns with both consumer aspirations and investment logic, he said.

Amar Kapoor, Founder of Terra Grande by Eldeco Group said that modern homebuyers are prioritizing spacious layouts, curated amenities, and locations that offer clean air, greenery, and a healthier environment. With rising disposable incomes and evolving lifestyle aspirations, luxury is no longer just about grandeur—it’s about quality of life, he said.

According to Rathi, there has been a huge surge in demand in the elite segment which has drawn the focus of developers. Homebuyers here have the ability and willingness to pay the stratospheric prices this product entails. "While this segment is concentrated in urban environments today, it could change as the market evolves, he noted.  

Luxury segment: Any slowdown?

According to the developers, the luxury real estate segment continues to perform well, with no major signs of slowdown. The market is now driven by informed decisions. High-net-worth individuals are seeking properties that align with their evolved lifestyle needs—homes that offer privacy, wellness, sustainability, and premium experiences.

This focused demand is ensuring consistent traction. Developers, in turn, are adapting to these expectations, keeping the segment resilient, stable, and future-ready despite broader market fluctuations, said Kapoor from Terra Grande.

The diverse buyer segment views luxury homes as both lifestyle assets and inflation hedges. Developers have also adopted customer-centric innovations, making luxury projects more compelling. All these factors signal that the luxury segment is not going to witness a slowdown anytime soon," Modi from County group said.

 

Shift towards second home?

The luxury real estate spotlight spans both metros and scenic second-home destinations. Metros like Delhi-NCR, Mumbai, Pune and Bangalore remain strong due to infrastructure upgrades, metro expansions, and corporate hubs. Meanwhile, emerging luxury hotspots like Dehradun, Alibaug, Shimla, and Coorg are gaining traction among HNIs seeking wellness-focused second homes.

Tier-II cities or second-home destinations are witnessing a significant rise in demand within the luxury real estate segment. Buyers are increasingly drawn to locations that offer cleaner air, lush surroundings, and a peaceful lifestyle—which is not possible in fast paced metro cities.

Destinations like Shimla, Kasauli, Rishikesh are fast becoming preferred choices for second homes, thanks to their natural charm and improving connectivity, said Kapoor. "Even our Terra Grande is offer premium holiday homes in a serene, elevated setting—perfect for those seeking a refined lifestyle surrounded by nature, wellness, and understated luxury," he said.

These markets offer scenic value, rental potential, and a quality lifestyle. The average capital appreciation across Tier-II cities stands is outpacing the national capital, Modi added, seconding the opinion. "In our view, it is beneficial to strategically diversify across these geographies to tap into both urban and aspirational demand."