High Disposable Income & Demand of Quality Living to Drive Luxury Homes Growth

The definition of luxury housing in India is no longer what it used to be. As more households move up the income ladder, buyers are bringing sharper expectations to the table. Besides, the pandemic was a major turning point. It made space, wellness, and privacy non-negotiable. Today’s luxury home is as much about comfort and calm as it is about status. It’s where aspiration meets everyday utility; and that shift is what’s driving the next wave of growth.

Rising India’s luxury housing segment

According to a joint report by CBRE-ASSOCHAM, India’s luxury housing segment witnessed an 85% year-on-year (YoY) growth in the first half of 2025, with nearly 7,000 high-end residential units sold across the top seven cities. Leading the luxury surge, Delhi-NCR clocked sales of approximately 4,000 luxury units during January-June 2025, contributing 57% share to the total luxury segment. The region also recorded a threefold increase in sales compared to the same period last year, the report said.

With rising disposable incomes, the appetite for premium homes has grown wider. NRIs are returning with global benchmarks, professionals are upgrading their lifestyle; there’s a clear shift toward real estate that delivers both comfort and capital appreciation. For many, a luxury home is no longer a milestone purchase-it’s a strategic one.

Yukti Nagpal, Director, Gulshan Group, says, “The concept of luxury has gone beyond mere possessions. With more disposable income and clearer expectations, buyers seek homes where they can experience comfort, convenience, and a certain ease in everyday living. In NCR, micro-markets like Noida-Greater Noida Expressway are seeing massive traction due to their superior infrastructure, proximity to business hubs, and access to prime facilities, aligning with what buyers look for. At Gulshan, we curate residences that are aspirational yet rooted in practicality; where every detail, from layout to location, enhances quality of life.”

Data from JLL showed, India’s housing market is witnessing a decisive tilt toward premium homes, with properties priced above Rs 1 crore accounting for 62% of all residential sales during the first half of 2025. These homes are being snapped up not just in Delhi or Mumbai, but in tier 2 cities too. For this new class of affluent buyers, luxury housing is where aspiration meets asset-building.

Saurabh Saharan, Group Managing Director, HCBS Developments, says, “In Gurugram, Dwarka Expressway’s rise as a premium residential zone is no accident. With its strategic location connecting Delhi and Gurugram, infrastructure upgrades, and proximity to IGI Airport, this stretch has become a magnet for luxury homebuyers. As developers, we’ve noticed an increasing shift towards smart, secure, and amenity-rich homes in this corridor. What’s especially driving the market now is a new wave of millennial buyers with rising disposable incomes, who want more than just shelter. They’re seeking larger homes, spacious layouts, and modern amenities that match their lifestyle. This shift is pushing the demand for premium, future-ready homes, and we believe Gururgam will sustain its real estate market where homes meet these aspirations.”

Dr. Vishesh Rawat, VP & Head of Marketing, Sales & CRM, M2K Group, says, “In sectors like Sector 104 along the Dwarka Expressway, we’re seeing a very distinct kind of luxury demand, which is quiet, thoughtful, and deeply lifestyle-driven. Affluent buyers here want homes that feel like a retreat but still stay connected to the city’s pulse. But what’s equally driving interest is the investment potential. With soaring property prices, strong sales momentum, and non-stop infrastructure development, this corridor is anticipated to deliver impressive ROI in the coming years. Hence, we foresee that luxury, for this segment, is about balance not excess.”

Vikas Dua, Founder and Director, Chintamanis Group, says, “Gurugram continues to lead NCR’s luxury housing evolution, driven by a clientele with high disposable income that values brand legacy, prime addresses, and architectural statement. Branded residences, especially along corridors like the Dwarka Expressway, are being viewed as generational assets. The demand here is as much emotional as it is financial, turning Gurugram’s billionaire belt a proven destination for enduring value.”

Simultaneously, Tier-2 cities like Dehradun, Chandigarh, Jaipur, Indore, and Lucknow have become the new luxury hubs. As per MagicBricks, the average capital appreciation across Tier-II cities stands at 17.6%, outpacing the national capital’s 11.10%. Driven by NRI investments, second-home aspirations, and retirement planning, luxury is now becoming a nationwide aspiration rooted in quality living and future-readiness.

Harvinder Singh Sikka, Chairman, Sikka Group, says, “The appetite for luxury homes in Tier 2 cities like Dehradun is unprecedented. With increased reverse migration, buyers are looking for elevated living without the chaos of metros. They demand panoramic views, green architecture, and modern amenities bundled into a lifestyle offering. Thus, the aspirational curve has shifted upward, and Tier 2 luxury now competes with metro-grade sophistication.”

Therefore, the future of luxury housing in India lies in its ability to evolve with the buyer. With disposable incomes rising and lifestyles becoming more global in taste, developers who focus on detail, design, and experience will be the ones leading the next chapter of India’s luxury housing story.