Luxury apartments from Rs 5 crores to Rs 25 crores in big and small cities; Who, and why, is buying such expensive property?

For many elite buyers, luxury housing has become a strategic wealth allocation strategy, and the startup and tech boom has created a new category of luxury homebuyers in India.

New Delhi: In big cities like Gurugram and Mumbai, property prices have reached the level of the prices in one of the world’s most expensive cities, Dubai, UAE. However, demand for luxury apartments has also increased significantly in many smaller cities. The question arises: why is the demand for expensive apartments increasing in the country, and who is buying them? The wealthy, NRIs, and the newly rich are largely responsible for this surge. A significant shift in people’s preferences is also being observed after the pandemic. People are no longer looking only at location, but are also prioritizing space and privacy.

Luxury housing as strategic wealth allocation strategy

For many elite buyers, luxury housing has become a strategic wealth allocation strategy. The startup and tech boom has created a new category of luxury homebuyers in India. Tech executives and founders in Bengaluru, Mumbai, and Delhi are turning to high-end properties. Similarly, senior consultants and those in senior positions within companies prefer premium gated communities. For this segment, luxury homes symbolize success and long-term asset building.

Investment purpose

NRIs and HNIs are investing in premium real estate for diversification and returns. It serves as a hedge against turmoil and uncertainty in the global economy. Additionally, it offers good rental yields in metro markets. For foreign investors, Indian luxury real estate is an attractive portfolio anchor.

Shift from big cities to smaller cities

Demand for luxury housing is also growing in cities like Panchkula, Indore, and Coimbatore. Housing in these cities is cheaper than in metros, and there is greater growth potential. Infrastructure and connectivity are steadily improving in these cities. Furthermore, the luxury boom is now shifting from major cities to smaller cities. Property prices have doubled or tripled in select markets in the past few years.