The landscape of Indian real estate is undergoing a significant shift, with luxury homes moving from a niche segment to a major market driver. A new report reveals that high-end properties now constitute more than a quarter of the total housing supply across the country, marking a substantial increase from just four years ago.
Market Share and Price Points: A New Era for Luxury
According to the Magicbricks Luxury Market Report 2025, the share of luxury homes in total supply has jumped to over 25%, a sharp rise from 16% recorded four years ago. On the demand side, the segment's share has grown from 14% to a solid 18%, indicating robust and sustained buyer interest. The report defines the median luxury segment at Rs 9.7 crore in Mumbai, approximately Rs 5.5 crore in Gurugram, Rs 2.9 crore in Bengaluru, and Rs 2 crore in Chennai.
The analysis identifies the sweet spots for luxury demand. The most vigorous activity is concentrated in the Rs 2-3 crore and Rs 3-5 crore price brackets. This trend is further bolstered by strong traction in ultra-premium purchases above Rs 10 crore, particularly in established markets like Mumbai and Gurugram.
Developer Strategy and Geographic Expansion
Developers are actively responding to this demand with a dual-pronged strategy. The highest supply contribution from builders comes from the Rs 1-2 crore, Rs 2-3 crore, and Rs 3-5 crore categories. This approach allows them to cater to a broader base of accessible luxury buyers while simultaneously strengthening their portfolio of high-end, premium offerings. The luxury wave is no longer confined to traditional metros; it is now expanding into new cities, signaling a wider geographic appetite for upscale living.
When it comes to cities with the most premium housing markets, Bengaluru leads with 48% of its market classified as premium, followed by Gurugram at 43% and Hyderabad at 29%. While Mumbai commands the highest absolute prices, its premium market share is relatively lower at 13%.
Projected Growth and Broader Luxury Spend
The report paints an optimistic future for the entire luxury sector in India. It projects that the nation's total luxury spending will witness exponential growth, soaring from $17 billion in 2024 to a staggering $103 billion by 2030. This growth will be powered not just by luxury housing, but also by other high-value categories such as jewellery, watches, and automobiles. The rise of luxury real estate is a key pillar in this expanding ecosystem of affluence.
The data clearly indicates that the Indian luxury home buyer is more confident and active than ever before. With increasing supply tailored to specific price segments and demand spreading to new locations, the premium real estate market is poised for a transformative decade ahead.
