Anjana Sastri, Director – Marketing, Sterling Developers

The luxury residential real estate sector is registering phenomenal growth in India through a desire to experience exceptional living environments and an enhanced emphasis on community and well-being. The ultimate luxury home is more than a property – it is a mix of individual and collective comfort that is propelling the market. The pandemic goes way back now, but the lessons it imparted hold great importance – as everyone realised the value of health, wellness, and safety, and hence luxury homes began to take centre-stage by redefining living standards geared towards an elevated calm.

Thriving micro-markets, a great investment incentive

While the high-end segment certainly provides a superior life and commune, investors see a sharp positive appreciation in thriving micro-markets in urban and suburban India, and hence see no serious fault-lines in premium home investments. In Bengaluru, this trend is especially evident. According to a CREDAI report, there has been a notable increase in new property launches in areas like the outer North Bengaluru micro-market, as well as around IT hubs such as Whitefield, where demand for spacious homes is rising. What makes these upscale investments particularly appealing is the combination of strong financial returns and enhanced living conditions. This creates a win-win scenario for investors, offering both monetary and lifestyle benefits.

Affluent, younger buyers driving luxury growth

Young affluent investors are increasingly allocating significant portions of their wealth to residential assets, as evident in the surge in sales of luxury homes which accounted for 25% of all residential units sold in the top seven Indian cities in early 2024. An increasing number of high-net-worth individuals, particularly millennials and non-resident Indians (NRIs), are driving this increased demand as they are keen to invest in India’s developing economy, reinstating real estate as one of the safest and most reliable financial options.

A desire for a world-class community feel

The modern affluent buyer seeks more than just a prestigious address – they desire a living space that enhances their quality of life and provides them with a community feel. The expected rise in demand from new age buyers and India’s growing trajectory promises great potential for this segment. The aspiration for an elevated lifestyle will continue to drive the development of state-of-the-art community spaces that offer something for everyone. In addition, the influence of international standards and culture will further enhance the offerings in luxury developments.

The value of social infrastructure

Community and gated living is good, but what is great is the access to all the essentials around it. People look for easy access to social infrastructure – schools, hospitals, retail and entertainment hubs that are in proximity and engage the residents. This was inadequate early on, but things have changed and virtually every urban space in India now ensures these are within reach of every resident, buyer and investor.

Desire for sustainable living

Sustainability is at the forefront of a luxury real estate customer’s checklist. The growing concerns over environmental impact, have made buyers extremely aware and conscious of their decisions to have homes with amenities and technologies that are comfortable yet sustainable. No wonder, green products both external and internal and sustainable energy have become part of communities that encourage sustainable practices and operations.

The digital and technology push

The evolution of digital infrastructure and tools have tremendously boosted the industry’s ability to reach out and interact with their customers worldwide. Virtual Reality and Artificial Intelligence have enabled developers to provide tailored experiences to their customers, giving them the opportunity to explore and discover multiple opulent real estate projects from the comfort of their home. Interactions between the developer and the customer are highly tailored to suit specific needs and are also more frequent owing to the ability to virtually connect.  Additionally, the ability to make financial transactions without physically being present has empowered customers to make timely decisions.

In conclusion, it can be said that as India continues to showcase a positive outlook, the faith and trust in premium real estate is bound to grow. The importance of owning a home has become key for most, and this has positively influenced the demand for residential real estate. As customers continue to fuel this growth, the focus is on developing unique projects that provide an elevated lifestyle. Going by the upbeat sentiments of the market, one can say with certainty that the luxury real estate market is bound to see great growth as we head into the future.