The Indian luxury housing sector is observing the increasing prominence of luxury villas which are outshining the apartments. These properties are becoming a preferred choice among affluent buyers who look for privacy, spaciousness, and a lifestyle that goes beyond mere luxury. This trend has gained significant momentum, especially in the post-pandemic era, where changing attitudes towards living arrangements have influenced the demand for more independent and personalized living spaces.
Unlike high-rise apartments, which can be densely packed and often come with shared amenities and common walls, luxury villas offer expansive living areas and private outdoor spaces giving residents a personalised living. As reported by Anarock, out of the 328,400 residential units introduced in the top seven cities in 2023, around 8,610 were villas. The report further highlights approximately 25% of luxury buyers are investing in luxury villas.
As per another report by CBRE South Asia, demand for homes priced at Rs 4 crore and above soared to new heights, with Delhi-NCR leading with sales of around 5,855 units, a 72% Y-o-Y increase. Besides, due to the rise in real estate values, increased economic activity, and the availability of premium amenities, the demand for villas and luxury homes in tier 2 cities like Goa, Chandigarh, Mysore, and Kochi is growing. According to JLL, India is predicted to experience urbanization at a rate of roughly 50% by 2050. Tier 2 cities are being recognized as the next frontier for real estate development. Thus, this demonstrates the increased interest that developers have in these areas and emphasizes the potential of small cities to play a significant role in the real estate industry’s growth.
Vansh Kataria, Co-founder of Tirasya Estates said tier 2 cities are witnessing a significant rise in demand for luxury villas, driven by a growing preference for exclusivity, spaciousness, and aspirational living.
“Goa, in particular, has become a sought-after destination, with 35% of holiday home buyers considering it as their second home destination. As per reports, these luxury villas in the state generate yields between 6-10%, far higher than Mumbai or Delhi, where average returns hover around 3-4%. This is coupled with capital appreciation rates of 8-12% annually, driven by limited land supply and high demand. Amidst this growth, we believe luxury villas will continue to remain the epitome of modern, high-value living.”
Neeraj Sharma, Managing Director, Escon Infra Realtors said villas, by nature, offer an unmatched level of freedom and individuality through expansive living spaces and bespoke designs that cater to evolving family and lifestyle needs.
“We recognize that HNIs and NRIs increasingly seek privacy, exclusivity, and a lifestyle that reflects their personal aspirations. Moreover, in regions like Delhi-NCR, luxury villas are in high demand, serving as both ideal for investment and an ultimate symbol of luxury living. Hence, we look forward to contributing to this growth through our luxury villas, catering to affluent buyers who value privacy.”
Moreover, a significant shift in buyer demographics is shaping this trend, as younger professionals and millennial investors increasingly prioritize personalized living spaces that reflect their lifestyles and aspirations. This new generation values privacy, customization, and the ability to own a home that seamlessly blends luxury with functionality, fueling the growth of villa projects in these markets.
Thus, post-pandemic shifts, changing demographics, and the aspirational value of owning standalone properties have further accelerated this trend. Villas not only cater to evolving family and lifestyle needs but also offer long-term ROI and appreciation potential, making them a sound investment. As consumer expectations continue to evolve and lifestyles become more experience-driven, the demand for luxury villas is set to rise, reshaping the future of premium real estate.
