Demand for Premium Housing in India Rises

India's residential real estate market reached new heights in 2024, with annual sales hitting a 12-year high of over 350,000 units, a 7% increase from 2023, according to Knight Frank. Most major cities saw steady growth, with a clear shift towards the premium housing segment defining the sector.

Surging Demand for High-End Housing

Homes priced above ₹10 million ($115,000) accounted for 46% of total sales. The share of properties priced between ₹10-20 million ($115,000–$230,000) grew by 15%, reaching 27% of total sales. Residential units in the ₹20-50 million range ($230,000–$576,000) saw the highest annual growth at 62%.

Sales increased across higher price brackets, except for the ultra-luxury segment exceeding ₹500 million ($5.7 million). Meanwhile, sales declined in the lower segments, with properties priced under ₹5 million ($58,000) and up to ₹10 million ($115,000) witnessing a drop.

Analysts attribute this shift in buyer preferences to a desire for an upgraded lifestyle and confidence in India’s economic trajectory. Developers have responded strategically by launching projects tailored to the rising demand for premium and luxury living.

Ahmedabad Housing Market: Reaching a Decade-High Sales Volume

Ahmedabad’s housing market recovered strongly from the pandemic-induced slowdown, recording an annual sales peak of 18,462 units in 2024, the highest in ten years.
- The average price per square meter rose from ₹32,669 ($376) to ₹33,336 ($384).
- The most affordable housing is in South Ahmedabad, starting at ₹18,300 ($211) per square meter.
- The most expensive area, Ambawadi, sees prices reaching ₹69,800 ($805) per square meter.

Bangalore: A Record-High Sales Volume in 2024

- Bangalore’s residential market recorded its highest sales volume in a decade, with 55,362 transactions in 2024.
- The average price per square meter increased from ₹66,335 ($765) to ₹71,256 ($821).
- The lowest-priced properties are in the Western region, starting at ₹39,826 ($469) per square meter.
- The central region remains the most expensive, exceeding ₹3 million ($34,500) per square meter.

Chennai: Steady Growth Towards Pre-Pandemic Levels

Sales grew by 9% YoY, reaching 16,238 units—still below pre-pandemic levels, but with strong momentum expected to surpass those figures in 2025.
Average housing prices increased from ₹49,084 ($566) to ₹51,726 ($594) per square meter.
Kolkata: Market Growth with a Cautious Approach by Developers
Sales rose 8% YoY, reaching 8,259 units in H2 2024, though lower than H1 2024 levels.
Developers slowed new launches, with a 34% drop YoY, totaling 5,889 new units, indicating market saturation in some segments.
The average price per square meter climbed from ₹39,267 ($457) in 2023 to ₹41,065 ($473) in 2024.
Market uncertainty, the end of stamp duty rebates, and interest rate hikes led to a more cautious stance among developers.

Mumbai: India’s Financial Hub Strengthens Its Real Estate Dominance

Mumbai continues to benefit from a thriving financial ecosystem driven by its strategic position in finance, trade, and industry. Major infrastructure projects such as the Mumbai Coastal Road, Metro Line 3, and Mumbai Trans Harbour Link (MTHL) are further solidifying the city’s real estate appeal.

Sales in 2024 reached 96,187 units, an 11% increase YoY, marking a 13-year high.
The average price per square meter increased from ₹85,036 ($980) to ₹89,091 ($1,026).
The growth in premium housing and improved suburban infrastructure have sustained strong sales performance.

Delhi-NCR: Market Consolidation Amidst Premium Demand

The National Capital Region (NCR) saw a strategic pause in sales growth after a strong run from 2020.

Developers launched 30,119 units in H2 2024, aligning with buyer preferences and infrastructure projects.
Sales corrected slightly to 28,656 units, but strong fundamentals and demand for premium homes keep NCR attractive, especially for investors.
Housing prices rose by 6% in H2 2024, with an average price of ₹54,530 ($628) per square meter.
Premium areas like Dwarka (Delhi) and Golf Course Extension Road (Gurgaon) saw significant price hikes due to luxury developments.
Historically, NCR has been one of India's most speculative real estate markets, with higher investor activity and limited mid-range housing stock. While affordable inventory remains tight, the upper segment (₹20-200 million or $230,000–$2.3 million) continues rapid expansion.

India’s Housing Boom: Developers Outpacing Sales Growth

Overall, India's housing market showed strong sales growth, but construction activity has outpaced demand since 2022, as developers rushed to capitalize on robust demand.

39% of unsold inventory is priced below ₹5 million ($58,000)—the largest segment today.
Despite sales declines, inventory remains under control due to slower construction activity.
Developers attract buyers with financing schemes, including subsidies, stamp duty waivers, and price freezes on upper floors.
Knight Frank’s research highlights that India’s residential market has experienced phenomenal post-pandemic growth, with new home sales rising 23% since 2020.

Key Drivers of Demand:
✔ Increased household savings during lockdowns
✔ Minimal income disruption for middle- and upper-income groups
✔ Household wealth creation
✔ Sustained economic growth

India’s GDP Forecast & Future Market Outlook

India's GDP is projected to grow by 6.6% in 2025, supported by a balanced foreign policy, enabling strategic partnerships with both developed and emerging economies. At the same time, the country is strengthening ties with key global players, providing momentum to its real estate markets as they adapt to shifting dynamics.