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

04 Dec 2025 CW Team

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.

Real Estate

11 May 2026

Danube Launches Greenz Villa Community in Dubai

Danube Properties has launched Greenz by Danube, a fully furnished master villa community in Dubai, unveiled by H.E. Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Coexistence, at an event attended by over 7,000 investors and business leaders.Located near Dubai International Academic City and Dubai Silicon Oasis, the development marks Danube’s first large-scale integrated villa community and is positioned within one of Dubai’s emerging residential corridors.The project will comprise three and four-bedroom townhouses along with five-bedroom semi-detached and twin villas...

Equipment

11 May 2026

ABB Launches IE6 Motor for Hazardous Industrial Areas

ABB has introduced what it claims is the world’s first IE6 Hyper-Efficiency motor certified for hazardous industrial environments under ATEX and IECEx standards.The new Increased Safety motor is based on ABB’s synchronous reluctance (SynRM) technology and is designed without magnets or rare earth materials. According to the company, the motor reduces energy losses by up to 60 per cent compared to standard IE3 induction motors commonly used in hazardous areas.The motor is intended for use in industries such as chemicals, marine, oil and gas, pharmaceuticals and food and beverage, where expl..

Real Estate

11 May 2026

Casagrand Launches 41-Acre Highcity Project in Chennai

Casagrand has launched Casagrand Highcity, a 41-acre integrated residential development on Chennai’s Outer Ring Road (ORR), marking the company’s largest residential project to date.The project will comprise over 4,000 two and three BHK apartments across four G+22 towers and is positioned as one of the largest organised residential developments in the ORR corridor.Located along Chennai’s emerging residential and infrastructure growth belt, the project benefits from connectivity to IT hubs including Navalur, Siruseri SIPCOT and Porur, as well as industrial clusters such as Sriperumbudur, ..