Do you dream of living in houses offering luxury, multi-tiered, and high-end security? Are several amenities such as a clubhouse, high-end modular kitchen, usage of imported Italian marble, and deluxe kitchens what your dream house is made of?
Then, information regarding a few of the important characteristics that you can find in a luxury house is taken out by Propinquity.
The research shows the market of luxury real estate in India is considered “aspirational“. It is about entering the “Elite Club” as luxury is something that only “3-4%” of the population can afford. It is about “enhancing your lifestyle” and seeking the best of the amenities available. In luxury properties, there are many defining attributes which are premium specifications and amenities.
A luxury property always focuses on offering first class and most premium specifications which consist of things like imported marble, air conditioning, deluxe kitchens, etc whereas premium amenities consist of exclusive large clubs with several sporting activities restaurants, and bars within the project. Luxury properties are strategically located closer to thriving business districts and social hubs ensuring connectivity for the residents.
A super luxury is a “ unique” product that “can not be recreated easily”. These luxury properties are called “A step beyond luxury”. It is not only a dream – It's the “Ultimate goal”. All likely luxuries are a “Given” in super luxury. Super luxury is about being the “most elite” amongst the elite.
Because super luxury is
<0.01% of the population can afford, not necessarily buy.
Below is the table showing the total no. of units supplied in the year 2018 and 2024 and the change in the market size between 2018-2024.
| Total Supply of units | Period | Change in market size (crores) | Percentage change in market size |
|---|---|---|---|
| 5130 | 2018 | 38,475 | 250% rise |
| 17687 | 2024 | 1,32,000 |
From the above table, it is observed that the no. of units supplied in the year 2018 was less compared to the units launched and supplied in 2024. Therefore, there has been an increase in units supplied in the last 5 years. And the status of market size has also seen a considerable growth of 250%.
With this data, a rise in the supply of units in 5 years means Tier 1 cities are considered fruitful for building residential properties as more people will buy here for residential purposes. And a 250% rise in market size, shows, investors can consider buying here for investment purposes.
Luxury units in Tier 1 cities of India have seen a good price appreciation and the below table shows the no. of units launched in Tier 1 cities and their value in crores in the year 2023.
| New Launch Value in Cr. (Tier-1 Cities) 2023 | |||
|---|---|---|---|
| Tier -1 Cities | New Launch (in Units) | New Launch Value (in Cr.) | New Launch Value (in $Bn) |
| Gurugram | 6,332 | 47,490 | 5.7 |
| Hyderabad | 4,376 | 32,820 | 3.9 |
| Mumbai | 4,338 | 32,535 | 3.9 |
| New Delhi | 1,042 | 7,815 | 0.9 |
| Navi Mumbai | 901 | 6,758 | 0.8 |
| Noida | 614 | 4,605 | 0.6 |
| Bengaluru | 440 | 3,300 | 0.4 |
| Pune | 252 | 1,890 | 0.2 |
| Chennai | 133 | 998 | 0.1 |
| TOTAL | 18,428 | 1,38,211 | 16.5 |
Data from both Gurugram and Hyderabad have seen a rise in the construction of units and developers preferring to build their projects here.
Mumbai, New Delhi, and Navi Mumbai are other cities that are sought after in terms of development in the real estate sector due to the presence of employment hubs, malls, and quality education provided here.
Noida, Pune, Chennai, and Bengaluru also are sought-after destinations in real estate development as they are well-developed compared to other small cities in India.
The growth in the luxury and super luxury sector is more compared to the stock market. The stock market on the other hand hasn’t seen similar growth compared to the real estate sector.
With the above data from Propequity, it is clear that Gurugram and Hyderabad both have been at the top positions in the list for the last 100 years. There has been a 20% increase in price appreciation in Gurugram. Other metropolitan cities such as Mumbai, Navi Mumbai, New Delhi, Noida, Bengaluru, Pune, and Chennai have also seen a surge in the prices of projects. And also there has been an increase in the no. of properties supplied in the period between 2018-2024 and there has been a 250 percent rise in the real estate market in these nine Tier 1 cities.
With a surge in luxury units launched, these tier 1 cities are considered as sought-after destinations to buy real estate properties by the end users as these are residential cities offering employment to people. A rise in property prices here shows that these cities can be considered to buy units for investment. And the type of amenities offered by luxury properties offers the comfort and facilities required by property buyers.
So, investors considering buying a unit in Tier 1 cities can take the risk of buying here as price appreciation in top employment cities like Gurugram, Hyderabad, Mumbai, and other urban cities are going to be there and can bring the returns as aimed by an investor.
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