India's luxury housing boom fuels demand for premium home products

India’s luxury real estate market is on a strong growth trajectory, and the impact is being felt beyond the developers’ balance sheets.

 

Premium brands across kitchenware, bath fittings, tiles, furniture, and interiors are experiencing a surge in demand as affluent buyers increasingly splurge on upscale residences.

 

Swapneel Nagarkar, business head & executive vice-president, Interio by Godrej, said, “The luxury housing surge has created strong demand for our furniture solutions. Customers investing ₹3-5 crore in homes want furniture that matches their lifestyle expectations. Increasingly, we are seeing requests for integrated solutions rather than individual purchases, where everything works together from Day One. This translates directly into our business growth. We have maintained 25 per cent growth, which we aim to sustain annually.”

 

Nagarkar is also expecting growth for the next 2-3 years to continue in line with luxury housing expansion.

 

According to Anarock, luxury housing sales in India have grown consistently since 2021 — they stood at 117,000 in 2024 against 22,054 in 2021.

 

The trend is mirrored in luxury fittings and interiors. Abdulkader Bengali, managing director (MD), Hansgrohe India —  a premium bathroom and kitchen fixtures firm — said, “Post-Covid, luxury spending has surged. The ultra-high net worth (ultra HNI) count in India is expected to rise from 13,000 in 2023 to around 20,000. Luxury housing is surging at a compound annual growth rate (CAGR) of 21 per cent. We are seeing high double-digit growth in our business, and we aim to continue this uptrend till 2030. There is also increasing interest from Tier-II and III cities, not just metros.”

 

With India’s luxury housing pipeline expected to more than double from $38 billion in 2024 to over $101 billion by 2029, Bengali said Hansgrohe is scaling operations, expanding retail footprint, distributor networks, and assembly lines. It is opening a signature experience centre in New Delhi.

 

A report by Magicbricks underscores the market’s growth. Valued at $12.33 billion, the home interiors segment is projected to reach $24.52 billion by 2030, growing at a CAGR of 12 per cent.

 

Rising disposable incomes, urbanisation, and a desire for personalised, functional living spaces are driving this expansion. The report noted that a well-designed interior can increase a property’s resale value by up to 70 per cent and secure rental premiums of up to 45 per cent.

 

The market’s demand is heavily concentrated in 2 and 3 bedroom, hall, kitchen (BHK) units, which make up 95 per cent of the market.

 

Mid-sized homes (750-2,000 sq. ft.) and properties with a ticket size of ₹2-5 crore are the most popular segments, representing 49 per cent of market demand.

 

Sudhir Pai, chief executive officer (CEO) of Magicbricks, said, “India’s homeowners increasingly view interiors as a strategic investment. We are witnessing a shift from unorganised players to structured, tech-enabled platforms. We work with over 150 brand partners to deliver bespoke solutions.”

 

The industry leaders believe that homebuyers are increasingly seeking larger, high-value residences that offer enhanced amenities.

 

In line with this trend, buyers in the luxury segment expect bathrooms and kitchens to match the comfort, technology, and design standards of the homes.

 

Anuj Puri, chairperson of Anarock Group, said developers are also responding to this shift. “Luxury homes over ₹1.5 crore have gained traction post-pandemic, driven by HNIs and non-resident Indians (NRIs). This has created demand for imported brands in modular kitchens, Italian marble, engineered wood flooring, and smart wardrobes. Many projects now feature collaborations with leading hospitality and international brands, offering buyers a complete luxury living experience.”

 

Additionally, industry experts said that developers are tying up with home product firms at the project level to create differentiated offerings. This is attracting buyers and improving cost and efficiency.