The Indian luxury housing market is witnessing a rising preference for luxury villas over apartments. Affluent buyers are increasingly opting for villas due to their privacy, spaciousness, and an elevated lifestyle beyond conventional luxury. This trend has accelerated post-pandemic, as homebuyers seek independent and personalized living spaces.
Unlike high-rise apartments, which come with shared amenities and limited privacy, luxury villas provide expansive living areas and private outdoor spaces, ensuring an exclusive residential experience. According to Anarock, out of the 328,400 residential units launched in the top seven cities in 2023, approximately 8,610 were villas, with nearly 25% of luxury homebuyers investing in them.
A CBRE South Asia report further highlights a surge in demand for homes priced above ₹4 crore, with Delhi-NCR leading the market, recording sales of approximately 5,855 units—a 72% year-on-year increase. Moreover, luxury villa demand is expanding beyond metro cities, gaining traction in tier-2 markets like Goa, Chandigarh, Mysore, and Kochi. JLL forecasts that India’s urbanization rate will reach nearly 50% by 2050, positioning smaller cities as the next real estate hotspots.
Vansh Kataria, Co-founder of Tirasya Estates, emphasizes this trend, stating, “Tier-2 cities are seeing rising demand for luxury villas due to an increasing preference for exclusivity, spaciousness, and aspirational living. Goa, for instance, has become a prime destination, with 35% of second-home buyers considering it their preferred location. Villas in Goa generate rental yields between 6-10%, significantly higher than Mumbai and Delhi, where average returns range from 3-4%. With annual capital appreciation of 8-12%, driven by limited land availability and high demand, luxury villas will continue to define modern, high-value living.”
Neeraj Sharma, Managing Director of Escon Infra Realtors, adds, “Villas offer unmatched privacy, expansive living spaces, and bespoke designs that cater to evolving family and lifestyle needs. High-net-worth individuals (HNIs) and non-resident Indians (NRIs) increasingly prioritize exclusivity, making luxury villas in regions like Delhi-NCR both a lucrative investment and a symbol of prestige.”
Additionally, shifting buyer demographics are contributing to this trend, with younger professionals and millennial investors seeking personalized living spaces that align with their lifestyles and aspirations. These buyers value privacy, customization, and a seamless blend of luxury and functionality, fueling the growth of villa projects in both metro and emerging markets.
With post-pandemic lifestyle changes, evolving demographics, and the growing appeal of independent living, luxury villas have become a compelling investment choice. Beyond offering exclusivity and comfort, they provide long-term ROI and strong appreciation potential. As consumer preferences continue to evolve, the demand for luxury villas is set to reshape the future of high-end real estate.
