India’s luxury market, valued at $17 billion in 2024, is expected to reach $103 billion by 2030, driven by strong demand for jewellery, watches, automobiles and now high-end housing. This broader premium consumption trend is reshaping the residential market, according to the Magicbricks India Luxury Housing Market Report 2025, which highlights both the maturing of luxury housing in Tier-1 cities and the rapid rise of new premium corridors across the country.

A key measure of this shift is the Magicbricks Luxury Price Index (LPI), which tracks the ratio of median luxury property prices in premium micro-markets to each city’s median housing price. The index shows a moderation in Tier-1 markets, with the LPI easing from 2.32 in 2021 to 2.27 in 2025, indicating faster growth in mainstream residential prices and a narrowing premium gap.

At the same time, emerging luxury hubs have recorded a sharp jump in LPI from 1.00 to 1.44, supported by a 27 per cent rise in demand and an 86 per cent increase in supply. Median luxury prices reflect the strong depth of the segment, with Mumbai at Rs 90.66 million, Gurugram at Rs 50.46 million, Bengaluru at Rs 20.91 million, Hyderabad at Rs 20.20 million, Chennai at Rs 20 million, Pune at Rs 10.97 million and Kolkata at Rs 10.50 million.

Several micro-markets have transformed significantly. The luxury share on the Noida Expressway has climbed from 10 per cent to 47 per cent, Devanahalli in Bengaluru from 9 per cent to 40 per cent, Ballygunge in Kolkata from 12 per cent to 50 per cent and Porvorim in Goa from 19 per cent to 47 per cent—driven by improved connectivity, sophisticated planning and large township developments.

Since 2021, luxury supply has expanded from 16 per cent to 27 per cent as developers focus on premium specifications, larger layouts and lifestyle-centric amenities. Demand has also strengthened, rising from 14 per cent to nearly 18 per cent of total home searches. The strongest traction is seen in the Rs 20–30 million and Rs 30–50 million segments, alongside robust ultra-premium buying above Rs 100 million in cities like Mumbai and Gurugram.

“India’s broader luxury consumption boom is now strongly shaping the housing market,” said Sudhir Pai, CEO, Magicbricks. “New corridors are emerging as credible luxury destinations, supported by infrastructure upgrades, better planning and rising affluence.”

Premiumisation is also redefining city markets, with Bengaluru holding a 48 per cent premium share, followed by Gurugram at 43 per cent, Hyderabad at 29 per cent, Pune at 24 per cent and Kolkata at 19 per cent. Mumbai remains the costliest market but reflects a lower premium share of 13 per cent due to widespread premiumisation across mainstream housing.