NEW DELHI: The notable expansion of India’s residential real estate market is mostly being driven by the country’s younger, wealthy population.
Three-quarters of the population in India are millennials, and last year they made up five4% of homebuyers with a projected total buying power of over US$330 billion.
With more people in the sector having more disposable money, they are looking for larger residences and making more investments, particularly in high-end real estate, in the hopes of earning larger returns.
Market figures show that between 2018 and 2023, sales of luxury homes in India’s top seven cities increased five-fold.
In the first nine months of 2023, sales of apartments costing more than US$4.8 million—which often include a swimming pool, an open gym, a lush garden, and parking lots for at least 15 cars—rose by 247%.
According to industry observers who spoke to CNA, wealthy Indians’ need for larger living areas following the COVID-19 outbreak is another factor contributing to the demand for high-end housing’s exponential rise.
Mr. Mittal, who hails from a tiny village originally, just bought a luxurious residential flat in Gurugram, which is 40 minutes away from New Delhi.
The four-bedroom flat on the 33rd level of an exclusive building was purchased by him in 2021 for a sum exceeding $300,000.
He told CNA that the property is now worth almost double what he paid for it.
“We desired to put our money into a property in which we could virtually certainly avoid losing it. The reason for the difficulty was that the products available in the market are either excellent options for life or excellent investments. Moreover, we sought to strike a balance between the two,” Mr. Mittal stated. After the pandemic, the residential real estate market had a “great resurgence,” according to Mr. Prashant Thakur, senior director of Anarock Property Consultants, who spoke with CNA. This was especially true of the luxury and ultra luxury classes.