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Why Premium Homes in India are high in Demand?

Posted on: 25-08-2025Courtesy: Star Estate
By Star Estate

Since the pandemic era, bull rush has been the reality of the Indian real estate sector. While the entire nation battled through the toughest time, the 'show must go on' attitude highlights the need for a spacious living address. Understanding the intricacies of compact residential units, India is witnessing a rising trend of premium homes.

Why Premium Homes in India are high in Demand?Why Premium Homes in India are high in Demand?

The property market opened doors for elite investors and new-age millennials, witnessing a major transformation. Amid the positive business trajectory, two major factors led to this change. The first is the pursuit of a premium lifestyle, and the second is the opportunity to earn high returns.

Another factor that attracts investors to explore the best luxury apartments in India is the income growth.

What is a premium home?

A premium home defines a living address where residents experience a serene, secure, and stylish atmosphere to live. Also, it is a place where life gets easy with keyless entry, a dedicated play area, and reflexology path- like amenities to unwind after a hectic day at work.

Why invest in premium homes in India?

In India, homebuying is an emotional decision than a financial one. Thus, several factors are considered before signing the buyer-seller agreement. Right from deciding on a perfect location to exploring profitability potential, there are several reasons that reflect the decision of why luxury homes in India are amongst the best investment options in 2025.

Parallel to the expanding network of roads, rail, and air connectivity, the sky-high residential buildings also grab attention. The evolution of technology, including the cutting-edge method, is sculpting dream residences into reality. Along with it, here are several reasons that lead to the growing demand for premium housing in India.

Themed-based Residential Projects

Unlike earlier, when only elite residents used to cherish premium amenities, the themed residential projects cater to a wider section of homebuyers. Now, the trickle-down approach leads to the finest living experience. From golf cart to golf course, there are many theme-based residential properties in India. Explore County 107 in Noida like projects now to unlock your dream living address.

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The pandemic is over, but the frequent adaptation of work-from-home culture, boosted the demand for premium homes in India.

Air-Purification System

The gigantic rise in pollution leads to health woes, and to curtail the same, reputed developers in India came up with a solution. With the addition of an air-purification system within the residential premises, the pollution level is reduced. Thus, ensuring a healthy atmosphere to breathe in fresh air round-the-clock.

Also, the air purification system in air-conditioners adds value to popular housing projects for sale in India.

Sustainable Features

Indian developers found sustainability as a solution to curb carbon footprint and enhance air quality. The incorporation of rainwater harvesting and sewage treatment plants is a sustainable feature responsible for growing demand for premium housing in India. One to name a few with sustainable features include Paras Florett in Gurugram. Once a possibility, now become a reality with the best luxury housing projects in 2025.

Energy Efficient Layout

RERA guideline defines a certain percentage for green and open space in the residential premises. Thus, projects reflect the same with ventilated layouts to overlook greenery. Also, the addition of solar panels on the rooftop reduces dependency on non-renewable energy, thus curtailing carbon emissions. The introduction of energy efficiency layouts makes luxury apartments in India a popular choice for investment.

Integrated Smart Home Automation

Technology is defining moves, beyond the navigation system to reach a destination to command home security. The keyless entry, video phone door, and voice command features make investors bet on premium housing properties. Emaar Digi Homes in Gurugram is one such example of the best luxury residential properties to invest in 2025.

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Factors driving high demand for luxury homes in India

Wealth Creation

An immovable asset is a legacy built for generations. To stay ahead of the curve, the incorporation of futuristic amenities also holds the potential to reap high capital gain. Thus, luxury residential properties remain high in demand for investors.

NRI Investors

Amidst global tensions and economic fluctuations, including the tariff war, premium property investment in India remains the top choice. Also, with reforms shaping a strong Indian economy, NRIs find the Indian real estate as an easy and transparent way for asset building. Another reason for NRIs' rising interest in luxury homes in India is to have a comfortable and calm habitat once they return home.

New Buyer Preference

The market has witnessed a massive footfall of first-time homebuyers since 2019. There has been a significant rise in sales of luxury properties between Rs. 2 crore to Rs. 5 crore, with a massive 400% standalone rise in 2024. The inflow of first-time homebuyers is a reason behind the high demand for luxury homes.

HNI Investors

The changing currency value and the boost of an improved policy environment are among the reasons behind the rising demand for luxury properties amongst HNI investors. Also, the high probability of capital gains are the factors that determine the rise in demand for luxury flats in India.

Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India said, “India’s residential market has entered a phase of strategic resilience. While macroeconomics fundamentals remain strong, the standout growth of luxury and premium housing indicates rising consumer confidence and lifestyle aspirations. Developer focus has realigned toward quality, transparency, and experience, all of which are key to unlocking the sector’s next wave of growth. The remarkable rise in luxury housing, both in demand and supply, reflects a structural shift in homebuyers’ preferences and reaffirms India’s position as a high-potential market for global and domestic investors alike.”

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FAQs

Luxury housing is a premium residential concept where spacious living units have top-notch amenities to experience an exquisite lifestyle.
The top cities in India to invest in luxury apartments include Delhi, Gurugram, Mumbai, Pune, Bangalore, and Hyderabad.
The best luxury residential projects in India offer amenities like home automation, infinity pools, and a double-height Clubhouse, to name a few.
The starting price of luxury homes in India varies as the luxury housing market distinguishes itself city-wise. Also, now is the right time to invest in premium real estate in India.
Get in touch with our sales manager now to explore the best luxury apartments for investment.