Invest In Luxury Housing For Great Returns In 2025? See What Experts Say

The year 2024 has been a landmark year for the luxury residential segment, marked by a significant transformation in buyer preferences and market dynamics. "We have seen that major metro and mini metro markets are increasingly moving towards bigger homes with luxury specifications that enhance the lifestyle of a family." said Manoj Gaur, CMD of Gaurs Group and Chairman of CREDAI National. 

Gaur's belief is not unfounded, as per the report published by JLL, the annual sale of the residential units increased by 26 per cent in 2023 and crossed the record number of the units sold in a calendar year. One of the major contributors towards this growth in real estate is the luxury segment. According to Mordor intelligence, luxury housing constituted 7 per cent of the overall market share in 2019, which reached 21 per cent in 2024, as reported by Indian Brand Equity Foundation (IBEF).

This rise is happening because homes are no longer seen as mere dwelling units but as personal statements—expressions of identity, ambition, and a desire for enduring value. Luxury homes have evolved from being symbols of opulence to spaces that resonate with buyers' journeys, aspirations, and status. Real estate developers, in turn, have redefined their approach to meet these evolving expectations. Beyond strategic locations, the key focus became project differentiation.

Sandeep Chhillar, Founder and Chairman, Landmark Group said, “As per the industry trend analysis, Delhi-NCR’s housing sales during Jan-Sep 2024 witnessed new growth numbers compared to the city’s last year’s sale numbers." The market sentiment seems to be positive in 2025.

                                                                                           Luxury housing growth rate, source: IBEF

Luxury Housing: An Investment

With a significant shift noticed in buyer behavior seeking upgraded lifestyle and upscale living spaces, the luxury homes segment witnessed a significant and constant jump in demand where Delhi-NCR emerged as one of the top performing markets amongst key cities. "Given the upward growth trajectory of the luxury housing segment, we anticipate a strong year ahead driven by positive market sentiments and favorable economic conditions." said Chillar.

The luxury real estate sector has experienced exceptional growth in 2024. A major highlight of the year has been that buyers have begun to look at luxury homes as the investment choice, increasingly recognising it as a powerful tool for capital appreciation and wealth creation. This factor has been further aided by the limited supply of luxury properties in prime markets such as Gurgaon, Delhi and Mumbai. This, in turn, has further intensified the demand and created a sense of urgency among investors, fueled further by the fear of missing out. 

"It is also a fact that luxury properties have consistently outperformed other asset classes in the last few years." said  Gurpal Singh Chawla, MD, TREVOC. The sentiment was backed by Sachin Gawri, Founder and MD, RISE Infraventures, who said, "The luxury real estate segment will continue to remain a top investment choice in the coming year as well."

Gurugram and its emerging corridors are expected to dominate the new supply of luxury housing and its demand in the year ahead. Developers are looking forward to rapidly increasing development and sales growth as Gurugram emerges to become one of the leading realty markets.

2025: Luxury Housing Prediction

Looking ahead to 2025, it is expected that the luxury real estate market will not just continue its upward trajectory but establish a new benchmark. It will be driven by the growing number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). The scarcity of land banks in NCR will also ensure that the luxury real estate segment will remain one of the most attractive and stable investment avenues and will continue holding its forte as a strategic instrument of investment, delivering both substantial capital appreciation and lasting value.