When it comes to real estate growth in India, attention often focuses on metro cities like Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai. However, a recent
survey by Magicbricks highlights that Tier-2 and Tier-3 cities are emerging as key drivers of India’s luxury housing market. According to Magicbricks, India’s luxury housing market is projected to grow at a compound annual growth rate (CAGR) of 35%, expanding from nearly USD 17 billion in 2024 to over USD 103 billion by 2030. This makes luxury housing one of the fastest-growing segments in India’s residential real estate sector, reported news agency ANI. While metros such as Mumbai, Delhi-NCR, and Bengaluru continue to dominate high-value residential transactions, the report shows a clear shift in buyer interest toward non-metro locations. These cities benefit from improved infrastructure, lower population density, and greater land availability, allowing developers to create low-density, premium residential projects. Also Read: Bengaluru Bus Fire: Accident or Negligence? What Led to the Tragic Blaze - In Pics Emerging Cities Driving Luxury Housing Growth Include:
- Panchkula
- Mohali
- Raipur
- Bilaspur
Data from ANAROCK also points to strong, sustained demand for premium housing in these cities, driven by rising household incomes, lifestyle upgrades, and a preference for larger, well-designed homes. Premium and luxury homes now account for a higher share of new residential launches in several Tier-2 cities, reflecting developers’ confidence in continued end-user demand, the media report added.
Industry experts note that luxury housing in India is increasingly defined by lifestyle features rather than size alone. Buyers are prioritising privacy, exclusivity, wellness, and experiential living, boosting demand for gated communities, independent floors, and lifestyle-led developments.
NRIs Choice
Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF Homes, said, "Families seeking a peaceful and fulfilling lifestyle are drawn to the serene environment of places like Panchkula. Buyers are looking for exclusive addresses and resort-like living, valuing privacy, comfort, and amenities,
He added that there has been a noticeable rise in non-resident Indian (NRI) interest in these markets. "We have also observed significant interest and investment from NRIs in the region's real estate market. Many NRIs view current conditions as a favourable opportunity to invest... Over the past three years, there has been a surge in demand for DLF's low-rise independent floors in Panchkula," Ohri said.
Echoing similar trends, Prakhar Agarwal of Rama Group said, "The next phase of India's premium housing growth is clearly moving beyond metros into Tier-2 and Tier-3 cities. In regions like Chhattisgarh, particularly Raipur and Bilaspur we are seeing growing demand for well-designed premium homes with modern amenities."
He further noted, "Infrastructure development, rising local affluence, and increasing professional migration are accelerating this shift. At Rama Group, we are focused on creating premium residential experiences in these emerging markets."
Rohit Kishore, CEO, Hero Realty, pointed to Mohali as a key emerging destination, stating, "Real estate in Tier-2 cities is changing rapidly, with more investors exploring options beyond major metros. Mohali stands out as an attractive choice due to urbanization, improved infrastructure, and a desire for a better quality of life."
Both Magicbricks and ANAROCK indicate that the rise of premium housing beyond metros reflects a long-term structural shift rather than a cyclical trend. As wealth creation expands geographically and lifestyle aspirations evolve, premium housing is expected to play a defining role in India's next phase of urban development, with the market firmly on track to cross USD 103 billion by 2030.
(With Inputs From ANI)
