+
Luxury Housing Spreads to New Markets as Tier-1 Premiums Stabilise
Real Estate

Luxury Housing Spreads to New Markets as Tier-1 Premiums Stabilise

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code