The growth of the Indian economy and the increasing trend towards urbanization in New Delhi have undeniably been instrumental in shaping India's real estate market. The ever-expanding population has also exerted significant pressure on the development of one of its most crucial sectors - the residential real estate market. Over time, this market has evolved, both in terms of the driving forces behind it and the desired outcomes that investors and homebuyers aim to achieve.
The burgeoning middle class, constituting 31% of the total population, has had a profound impact on various aspects of lifestyle, particularly the cultural norm of homeownership in Indian society. Increasing incomes and aspirational buying habits have driven the demand for luxury homes, leading to a significant evolution in the definition of luxury over the years. Initially, luxury home sales in India were driven by the prestige associated with specific addresses or locations. Nonetheless, luxury now encompasses far more than just the physical location; it embodies a holistic lifestyle.
The luxury real estate market has witnessed its fair share of fluctuations throughout the real estate cycle. While it thrived initially, by the mid-2010s, developers began focusing more on constructing affordable housing options. This shift was driven by the widening gap between supply and demand, along with various government incentives aimed at addressing this disparity, making the affordable housing market highly lucrative during that period.
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