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Transformative Trends in 2024: The New Dynamics of Luxury Real Estate

By Lodha

As we navigate through 2024, the real estate market is undergoing significant transformations, driven by a confluence of emerging trends, technological advancements and evolving buyer preferences. The property landscape, for instance, luxury apartments in Mumbai was traditionally defined by opulence and exclusivity but is now being redefined to align with modern values and needs. Buyers are no longer satisfied with mere lavishness; they are seeking properties that offer sustainability, advanced technology, wellness amenities and personalised experiences. This shift in expectations is compelling top builders in India and real estate professionals to innovate and adapt, ensuring that luxury homes meet the demands of contemporary lifestyles.

In this blog, let us go through what experts have to say about Q1 and Q2 of 2024 and what the future holds in store for the luxury real estate sector.

Why India's Luxury Real Estate Market Is Booming in 2024?

The country’s significant economic growth is reflected in the rise of disposable income. As more and more potential homebuyers have substantial disposable income, the more likely they are to invest in lavish homes with world-class amenities. Experts estimate that India’s luxury real estate market is undergoing significant growth, projected at a rate of 5% from 2023-2028. The demand for luxury real estate has recently increased, and the renewed interest in the sector is reflected in the numbers. Around 45% of the luxury real estate inventory has been established in the last five years alone. Industry insiders have also shared that although luxury real estate only had a 4% share in the first quarter of 2019, the tides have changed swiftly. Since 2019, the segment has shown a CAGR growth of more than 9% across major cities.

A 2024 survey by India Sotheby’s has also revealed that affluent investors have made properties that offer capital appreciation a priority while investing in real estate. Since investors have expressed an interest in property that lasts generations, long-term investments are rising, including luxury real estate in prime locationreal s. The supply of luxury real estate like luxury apartments in Pune has also increased to meet the rising demand. While Q1 of 2024 saw almost 28,000 units flood the market, experts expect a rise of 5-10% in the overall supply of luxury homes in the market. Research conducted by Anarock has also suggested that out of the 1.30 lakh units sold across the top seven cities in the first quarter of the year, luxury homes priced more than Rs 1.5 crore made up 21%, at a little over 27,000 units.

As of 2024, luxury homes have emerged as attractive investment choices, especially among the wealthier segments. Non-resident Indians (NRIs) are also investing in the luxury real estate market, having flushed the economy with $13.1 billion in 2023. Experts project that NRIs will continue to invest in the Indian real estate market, especially luxury homes. They expect that NRIs will contribute around 25% of the nation’s total real estate investments by 2025. The influx of investors in the luxury real estate sector can also be attributed to the low prices and discounts offered by developers during the early stages of the pandemic. The trend has acted as an impetus for investors to move away from investing in affordable housing and choose luxury real estate, instead. In return, developers have also responded by launching more luxury real estate projects, adding to the supply.

As far as buyer trends are concerned, Indians living in urban areas are interested in high-rise and condominium apartments. Such properties allow investors to enjoy more space in densely populated cities and enjoy natural light, ventilation and impressive panoramic views. Investors looking at properties are looking at real estate with USPs like unmatched architectural elegance, unparalleled services and world-class amenities for mind, body and soul. Indians looking to invest in holiday homes are looking at multi-storey homes and villas in quiet and quaint areas.

As India focuses on infrastructure and stable economic and government policies, a younger population will have increased disposable income. All of this, and the addition of foreign capital, will translate to increased demand for luxury real estate in the future. Experts believe that investing in luxury real estate is more than a fad-it is a trend that will likely continue in the future.