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Indian real estate stocks continued their bull run for the second consecutive year in 2024, as developers posted strong performance across key operational metrics, including bookings, collections, operating cash flow, and new business development, amid growing demand for residential projects with luxury and ultra-luxury segments emerged as key drivers of this growth. As disposable incomes rise across India, more individuals are choosing to invest in real estate, a consistently favoured asset for Indian households. This shift towards a more affluent lifestyle has fueled a growing desire for luxury homes that offer enhanced amenities and comforts beyond conventional housing.
Although housing sales across the top seven cities in India recorded a slight decline of 4% in 2024, totaling approximately 4,59,650 units compared to 4,76,530 units in 2023 (according to Anarock), the jump in luxury home sales led to an overall sales value increase of 16% , reaching approximately ₹ 5.68 lakh crore in 2024, up from ₹ 4.88 lakh crore in the previous year.
The demand for premium homes in 2024 saw a 20% increase in key markets such as Delhi-NCR, driven by infrastructure projects like the Noida International Airport and the expanding aspirations of homebuyers. High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) have been supportive in driving demand for luxury properties. In Tier-I cities, demand for these properties has been on the rise since FY22, reflecting a post-Covid preference for spacious, well-equipped residences that accommodate remote work and provide enhanced security.
Developers are tailoring their offerings to cater to this demographic, who often seek properties with high privacy, exceptional amenities, and world-class services. Additionally, the rally in real estate stocks in 2024 can also attributed to the RBI's shift from a hawkish 'withdrawal of accommodation' stance to a more neutral position in October, raising hopes for potential rate cuts. 90% of stocks end 2024 in green The Nifty Realty index, which tracks the performance of major real estate stocks, advanced 34.
39% in 2024, with nine out of the 10 constituents of the index ending in the green. Oberoi Realty emerged as the top gainer with a return of 60%. This was followed by Sobha, Brigade Enterprises, Phoenix Mills, Godrej Properties, Prestige Estates Projects, Macrotech Developers, DLF, and Raymond, which gained between 6% and 56%.
Pradeep Aggarwal, Founder & Chairman of Signature Global (India), highlighted the driving forces behind this transformation: “The Indian real estate sector surged in 2024, supported by rising urbanisation, shifting lifestyles, and increasing demand across affordable, mid-income, and luxury segments. Residential demand has been particularly strong, while the luxury market saw a boost from HNIs and NRIs keen on high-end amenities in cities like Gurugram, Mumbai, and Bengaluru.” He further noted that these cities have remained focal points for luxury buyers.
"Gurugram, for example, has experienced a surge in demand for high-end residential properties, further bolstered by a series of infrastructure projects and its proximity to key business hubs. This growing demand has also extended to newer locations, with developers increasingly looking beyond traditional metro cities, expanding into areas like Noida, Pune, and Chennai," he added. Luxury theme set to thrive in 2025 The demand for luxury homes is expected to expand further in 2025, driven by a strong shift towards convenience-driven luxury.
Today’s luxury buyers increasingly seek homes that offer a complete living experience—combining comfort, convenience, and intuitive services in one package. Yukti Nagpal, Director at Gulshan Group, observes, “Convenience is the new luxury—a trend that underscores a desire for effortless living amidst the hustle and bustle of modern life. The rise of technology-driven solutions, integrated home systems, and high-quality services has become a central focus for developers catering to high-end consumers.
At Gulshan Group, 2024 saw the delivery of Gulshan Dynasty, a project that stands as an epitome of luxury and refined living.” Ambika Saxena, Director of Corporate Communications at Bayside Corporations, explains: "Looking ahead to 2025, the luxury real estate market in India is set to witness continued growth, driven by the increasing demand from HNIs and NRIs. This demand reflects a shift towards premiumization, with buyers increasingly seeking larger, more exclusive homes with state-of-the-art amenities and privacy.
" This demographic shift, along with the booming demand for luxury properties in key urban centers, is expected to continue shaping the market in the coming years, Saxena added. Disclaimer : The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.
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