The Indian luxury real estate market is experiencing a substantial boom, with demand soaring across different regions of the country. In a recent CNBC discussion, Abhinandan Lodha, Chairman at The House of Abhinandan Lodha, and Santosh Kumar, Vice Chairman at Anarock Group shared their insights on the market’s upward trajectory and its future prospects.
Rising Demand and Growth Outlook
The demand for real estate is expected to witness significant growth over the next two to three years. As per market predictions, approximately 48 prime locations will see heightened interest from buyers, driven by increasing affluence and the evolving preferences of high-net-worth individuals. However, pricing dynamics may vary from region to region based on location, infrastructure development, and economic activity.
Impact of Wealth and Investment Trends
One of the key drivers of this surge is the rising disposable income of individuals, enabling them to invest more in luxury properties. According to Abhinandan Lodha, land ownership is synonymous with wealth, making it a highly sought-after asset. Moreover, he emphasised that land retains greater value than real estate, particularly in urban and Tier 2 cities.
Ultra-Luxury Housing on the Rise
Insights from Anarock Group revealed that the ultra-luxury housing segment saw a remarkable 17% surge in total sales value year-over-year for 2025. The year 2024 was particularly notable for the segment, with 59 ultra-luxury properties sold, comprising 53 luxury apartments and 6 luxury bungalows. This growth signifies the increasing appetite for high-end living spaces among affluent buyers.
Promising Markets for Future Investments
Abhinandan Lodha identified Vrindavan, Shimla, and Ayodhya as the most promising markets for luxury real estate investments. These locations are gaining traction due to their tourism appeal, sustainability factors, and infrastructural advancements. He also highlighted that holding land in semi-urban or urban areas for a decade could yield compounded returns of over 24%.
The Value of Land as an Asset
The discussion reinforced the idea that land ownership remains a cornerstone of wealth creation. With a growing emphasis on sustainability and strategic location selection, investors are increasingly recognising the long-term benefits of acquiring land as opposed to built properties.
The luxury real estate sector in India is poised for continued expansion, offering lucrative opportunities for investors and homebuyers alike. With demand consistently rising, industry experts anticipate that the market will maintain its momentum in the coming years.
Source: CNBC-TV18 interview with Abhinandan Lodha and Santosh Kumar, January 10, 2025.
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