Residential Market Soars in 2024; Luxury Housing Demand Set to Remain Strong: CBRE Report

The residential real estate market has experienced significant growth in 2024, with the demand for luxury homes continuing to surge. According to CBRE, this trend is expected to persist, particularly in prominent cities like Gurugram, Mumbai, and Bengaluru. The expansion of luxury real estate reflects the evolving aspirations of Indian buyers, with developers responding by offering innovative, high-quality properties that cater to these new expectations.

CBRE’s India Market Monitor reports that over 3,00,000 housing units were sold for the second consecutive year, while more than 2,80,000 new units were launched. The market’s growth is particularly driven by cities like Mumbai, Pune, and Delhi-NCR, which accounted for 66% of sales in Q4 2024. The luxury housing segment has notably experienced significant growth, with buyer preferences shifting towards more exclusive and opulent properties.

Aakash Ohri, Joint Managing Director and Chief Business Officer of DLF, commented on this shift, emphasizing that the increased demand for homes highlights a fundamental change in people’s views on homeownership. "The value of owning a home has become clearer, and the luxury housing market in NCR has seen remarkable growth, with sales in the luxury segment rising to 45% in the first half of 2024, up from just 3% in 2019," said Ohri. DLF's luxury high-rise, DLF ONE Midtown, in New Delhi, which launched in 2022, is already commanding INR 24,675 per square foot, reflecting the strong demand and confidence in the brand.

CBRE’s report reveals that the luxury housing market, once considered a niche sector, is now a key driver of growth. The luxury and ultra-luxury segments have played a major role in the overall sales increase, with buyers, including Ultra High Net Worth Individuals (UHNIs), senior executives, and startup founders, seeking homes with advanced features such as smart home technology, high-end security, and world-class amenities.

Mumbai, Gurugram, and Pune have emerged as key hotspots for luxury real estate, contributing to over 62% of all transactions in 2024. This underscores the growing demand for premium residences that combine exclusivity with long-term investment potential. Developers have responded to this demand with unique, high-end projects, such as The Edge by Tribeca Developers in South Mumbai, which sold out within a month of its launch.

Rajat Khandelwal, Group CEO of Tribeca Developers, highlighted the landmark success of The Edge, which sold out rapidly, underscoring a significant shift in India’s luxury real estate market. “Over the past four years, we’ve seen nearly 50% year-on-year growth in the luxury segment, driven by the evolving preferences of UHNIs, senior corporate executives, and startup founders who seek spacious residences with advanced home automation, superior security, and world-class amenities,” Khandelwal explained.

For India’s UHNIs, luxury real estate has become a strategic investment, offering significant returns compared to premium or affordable alternatives. In 2024, Mumbai and Gurugram accounted for 84% of ultra-luxury transactions. Tribeca Developers plans to expand its Trump super-luxury portfolio across major Indian cities in 2025, setting new standards for exclusivity and opulence.