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Luxury automakers Mercedes-Benz, BMW eye Indian real estate sector

According to multiple sources close to the development, Mercedes-Benz is already in talks with multiple developers in Gurugram for a luxury branded residence project

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Real estate

Roshni ShekharShine Jacob Mumbai/Chennai

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Luxury automobile companies Mercedes-Benz and BMW are eyeing the Indian real estate sector, and are in discussions with multiple developers in prime locations, said sources. The trend has seen a spike since Lamborghini family's interest in the Indian realty market, industry insiders said, indicating that such deals are expected to see a rise come 2026.
 
According to multiple sources close to the development, Mercedes-Benz is already in talks with multiple developers in Gurugram for a luxury, branded residential project. Though a source said that BMW is also in talks with Indian groups, it is not clear whether it is for a branded project or for its creative design consultancy arm Designworks, which also caters to the real estate sector.
 
Business Standard had reported last month that Tonino Lamborghini SpA, founded by Tonino Lamborghini, the son of Ferruccio Lamborghini (the founder of the car company), is in advanced stages of talks with two real estate developers in Mumbai and Chennai. Mercedes-Benz has two projects globally, one in Dubai and another in Miami, Florida. BMW is yet to launch any branded residential project globally.
 
“The Lamborghini family exploring India has definitely accelerated conversations. While I cannot go on record about specific brands, I can share that interest has broadened across a few luxury automotive houses, premium wellness brands, couture labels, and European design studios. Several of them are already in early-stage discussions with Indian developers for flagship branded-home collaborations,” said Nandivardhan Jain, chief executive officer (CEO), Noesis Capital Advisors, a hotel transaction advisory and consulting firm.
 
Queries sent to BMW and Mercedes-Benz did not elicit a response.
 
India at present is number six globally in terms of live branded residence projects, contributing a fourth of the global supply, and tenth in the global project pipeline. Major players having a presence in India in this space include Four Seasons, The Ritz-Carlton, Marriott, Armani Casa, Versace Home, the Trump family, Hyatt, Pullman, ITC, and Hilton. The new luxury additions to the list will mark India's entry into the automobile-branded luxury project landscape, otherwise dominated by luxury hotels and lifestyle brands.
 
“Now, developers are looking at brands because it naturally brings in a fresh identity and appeal before luxury segment customers. Moreover, it ensures a certain quality in service,” said Arun Bharathi Arunachalam, founder and managing director, Bharathi Meraki.
 
According to experts, India has now entered the same league as the US, UAE, Thailand, and Vietnam — traditionally dominant branded residence markets. The Savills Branded Residences 2025-26 Report highlights that branded residence supply in the Asia-Pacific region has grown 55 per cent over the past five years, with India named as one of the key contributors alongside Vietnam and Thailand. This is a sign of branded residency — once limited to marquee addresses in Dubai, Miami, or London — gearing up to conquer the minds of the Indian ultra-rich. Recently, the Indian Hotels Company Ltd (IHCL) also announced Taj branded residency in Chennai.
 
According to Noesis Capital Advisors, developers in tier-1 markets like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, and Chennai are driving the early momentum while tier-2 cities such as Bhubaneswar, Chandigarh, Ahmedabad, Goa, and Surat, along with leisure destinations within a two-hour drive from major metros, have become very strong adoption zones for branded residencies.
 
Jain further added that global design houses, automotive luxury marques, fashion labels, and wellness brands are actively evaluating India because the branded-homes buyer base here has matured significantly in the last three years. The demand for curated living — where the brand brings lifestyle, design ethos, and aspiration value — will be comparable to global markets in the near future.
 
Other industry experts corroborated Jain and noted that several non-hospitality brands are seriously and actively exploring opportunities to enter India for branded residencies. However, their interest is not just limited to branded residencies; these companies are also looking to have their branded hotels in India, said an industry expert, who did not want to be named.
 
A Knight Frank report cites the number of branded residence schemes rising from 169 in 2011 to 611 in 2025, with the figure expected to cross 1,000 by 2030. Correspondingly, total branded residence units are projected to surge from just over 27,000 in 2011 to more than 162,000 by 2030. 
Exploring new vistas 
  • Mercedes-Benz already in talks with developers in Gurugram for luxury, branded residential project
  • BMW is also in talks with Indian groups, sources say
  • Such deals expected to see a rise in 2026
  • Industry experts say non-hospitality brands actively exploring opportunities to enter India for branded residencies
  • These companies also looking to have their branded hotels in India