Housing Across New Markets as Tier-1 Premiums Stabilise

Mumbai : India’s luxury market is projected to grow from USD 17 billion in 2024 to USD 103 billion by 2030 at a CAGR of 35%, led primarily by categories such as jewellery, watches and automobiles. This rapid expansion of premium spending is now decisively shaping the housing market as well—an evolution captured in Magicbricks’ India Luxury Housing Market Report 2025, released today. The study finds that India’s luxury housing segment is entering a new phase of maturity while simultaneously expanding into new geographies beyond traditional metro centres.

A key indicator of this shift is the Magicbricks Luxury Price Index (LPI), defined as the ratio of median luxury property prices in key luxury micro-markets to each city’s median property price excluding luxury projects. The index reflects how premiums have evolved relative to mainstream housing, with Tier-1 cities showing stabilisation as the LPI moderates from 2.32 in 2021 to 2.27 in 2025. This indicates that mainstream prices have grown steadily, narrowing the gap with high-end properties.

In contrast, emerging luxury locations have seen their LPI rise sharply from 1.00 to 1.44 during the same period, supported by a 27% increase in luxury demand and an 86% rise in supply. Median luxury prices further underscore this depth, with Mumbai at ₹9.66 crore, Gurugram at ₹5.46 crore, Bengaluru at ₹2.91 crore, Hyderabad at ₹2.20 crore, Chennai at ₹2.00 crore, Pune at ₹1.97 crore and Kolkata at ₹1.50 crore—signalling the increasing ability of multiple cities to command significant premium value.

Several micro-markets have undergone particularly rapid transformation. Luxury’s share on the Noida Expressway has surged from 10 percent in 2021 to 47 percent in 2025, Devanahalli in Bengaluru from 9 percent to 40 percent, Ballygunge in Kolkata from 12 percent to 50 percent, and Porvorim in Goa from 19 percent to 47 percent. These steep rises reflect how infrastructure improvements, enhanced connectivity and large-scale township development are enabling luxury housing to flourish in new pockets across the country.

The report also highlights that India’s luxury housing ecosystem has expanded substantially since 2021. Luxury homes now form 27% of overall supply, up from 16%, as developers pivot toward larger layouts, premium specifications and integrated lifestyle amenities. Demand has strengthened alongside, rising from 14% to nearly 18% of total home-seeking activity, driven by buyers who are increasingly seeking superior design, convenience and future-ready living environments.

In terms of price segments, luxury demand is strongest in the ₹2–3 crore and ₹3–5 crore brackets, supported by robust traction in ultra-premium purchases above ₹10 crore in markets like Mumbai and Gurugram. On the developer side, the highest supply contribution comes from the ₹1–2 crore, ₹2–3 crore and ₹3–5 crore categories, reflecting a dual strategy of catering to accessible luxury buyers while also strengthening high-end premium offerings. This alignment between demand and supply underscores the growing depth and diversification of India’s luxury housing market.

Commenting on the findings, Sudhir Pai, CEO, Magicbricks, said, “India’s broader luxury consumption boom is now strongly shaping the housing market, where buyers are seeking not just larger spaces but future-ready, well-connected communities. What is striking is how quickly new corridors are emerging as credible luxury destinations, powered by infrastructure upgrades, better planning and rising affluence. These markets are no longer peripheral—they are becoming preferred choices for discerning, investment-aware buyers. This shift reflects a more confident premium homebuyer and will define how India’s luxury housing landscape evolves over the next decade.”

The report notes that premiumisation is reshaping city markets as well. Bengaluru currently holds a 48 percent premium share, followed by Gurugram at 43 percent, Hyderabad at 29 percent, Pune at 24 percent and Kolkata at 19 percent. Mumbai continues to lead in absolute price terms but maintains a lower premium share at 13 percent due to widespread premiumisation across its mainstream housing stock. The evolving landscape reflects how luxury is no longer defined solely by exclusivity; it is increasingly characterised by design sophistication, sustainability integration, technology-enabled living and community-oriented environments that appeal to affluent, experience-driven buyers.