The market's rapid expansion in India is being driven by the strong demand for luxury real estate from domestic consumers, non-resident Indian (NRI) investors, and high-net-worth individuals (HNWIs).

According to the international real estate company GRI Club, the market is outpacing projections and is anticipated to reach record-breaking sales for the third consecutive year.

The sector is expected to surpass projections and achieve its third consecutive record-breaking year in terms of sales, according to the reports. In 2024, it is anticipated that the top seven cities would sell over 300,000 residential units, with total sales estimated to exceed INR 5.1 trillion.

This rise illustrates the growing dominance of the luxury real estate industry in the country's evolving real estate market.

The report indicates that demand for ultra-luxury homes has increased to record levels, with Bangalore, Mumbai, and Gurgaon seeing the most demand. Luxurious, feature-rich residences that offer exclusivity and first-rate living circumstances are attracting more and more customers.

In addition to private purchasers, institutional investors, and family offices are increasing their holdings of luxury real estate. Many are moving their money to structured real estate investments and another financial instruments because they believe that luxury real estate is a stable and growing asset class, particularly in light of stock market volatility.

The report finds that many of these investors are putting their money into structured real estate funds and alternative investment vehicles because they think luxury real estate is a steady and expanding asset class, even in the face of stock market volatility. This rise is mostly being driven by NRIs in particular.

Many NRIs consider luxury real estate in India to be a long-term cost-cutting strategy that aligns with global investing trends. Additionally, Indian investors are paying close attention to luxury real estate abroad, particularly in Dubai and the UK.

The ongoing speed of the luxury housing market in India, where high-value real estate transactions are becoming more and more popular, indicates a shift in investing strategies. As long as there is a growing demand for premium real estate, it is anticipated to remain a significant engine of India's economic development.