Source: Good Returns ( https://bit.ly/3xqi4gE )

India’s real estate market is witnessing a seismic shift, with the luxury housing segment experiencing an unprecedented surge in demand. Factors such as rising incomes, growing aspirations for upscale living, and a preference for modern amenities have propelled this transformation, resulting in a boom in luxury home sales across the country.

The role of non-resident Indians (NRIs) in driving the luxury housing market cannot be understated. NRIs have emerged as significant contributors, accounting for nearly a quarter of total residential sales at major developers. The allure of luxury properties, coupled with the promise of exclusivity and modern amenities, has attracted both domestic and international buyers alike.

According to a report by property consultant Anarock Group, the share of luxury homes sold in India has tripled over the past five years, with luxury properties now constituting 21% of all residential units sold across the top seven Indian cities in the first quarter of 2024, up from 7% in 2019.

Interestingly, luxury home sales have surpassed those of affordable housing units, reflecting a changing preference among homebuyers. Affordable housing units, which once dominated the market, have seen a decline in sales share from 37% to 18% over the past five years, while the mid-range and premium housing segment maintains its dominance with a 59% share

The influx of NRI investments is further fueling the demand for luxury housing in India. NRIs now account for nearly a fourth of total residential sales at major developers, a significant increase from pre-pandemic levels.

Meanwhile, the surge in luxury home sales has reshaped the dynamics of the real estate market, with the affordable housing segment witnessing a decline in its market share. Affordable housing, which once dominated the market with a 37% share, has now dropped to around 18%, highlighting the evolving preferences of homebuyers in the current scenario.