From Homes to Wealth Havens: ROI Trends in Delhi-NCR’s Luxury Segments

By Dr. Gautam Kanodia

New Delhi, April 24, 2025: India’s housing market has witnessed an exceptional growth curve, with momentum building across segments, most notably in luxury housing. The post-pandemic landscape has transformed how people view their homes; not just as shelters but as sanctuaries that reflect aspirations, comfort, and security. This shift has triggered a surge in demand for premium living spaces, backed by a growing appetite among buyers to invest in quality over compromise.

As per the CBRE South Asia report, India’s luxury housing segment recorded a 28 per cent jump in the January-March period this year, compared to the same period of the previous year, across India’s top seven cities. The segment, which comprises homes priced at INR 4 crore and above, registered total sales of approximately 1,930 luxury units during the quarter. Delhi-NCR led in quarterly luxury unit sales, recording nearly half of total sales at around 950 units, followed by Mumbai, which had a share of 23 per cent in overall sales.

Additionally, the region’s luxury housing is booming, driven by high-performing micro markets that combine premium living with strategic urban advantages. In Gurugram, areas like Golf Course Road, Golf Course Extension, SPR Corridor, and other regions have emerged as top choices due to their proximity to commercial hubs, elite schools, and modern amenities. Further, established neighborhoods in South Delhi, like Defence Colony, New Friends Colony, and more, have been identified as the most affluent neighborhoods in the city. The areas are well-connected to major business districts and close to some of Delhi’s top schools, colleges, and hospitals, making them ideal choices for homebuyers looking for a convenient yet prestigious location.

Moreover, a major catalyst behind the rising demand for luxury housing in Delhi-NCR is its strategic location and seamless connectivity. Its proximity to the Indira Gandhi International Airport makes the region particularly attractive to global business leaders, frequent flyers, and NRIs. The infrastructure ecosystem continues to evolve with high-speed corridors such as the Dwarka Expressway significantly improving access to upscale residential zones. On the other hand, developments like the tunnel and Manesar flyover on the way will not only cut down commute times but also elevate the overall living experience, strengthening NCR’s positioning as a premier hub for luxury real estate investment.

Besides, luxury homes are no longer viewed solely as lifestyle statement, they are increasingly being recognized as strategic wealth-building assets. For many buyers, especially HNIs, NRIs, and affluent millennials, investing in high-end residential spaces offers the dual benefit of an elevated living experience and long-term capital appreciation. These properties blend emotional gratification with financial prudence, transforming dream homes into appreciating assets. As property values climb steadily in premium micro-markets, luxury real estate is emerging as a preferred vehicle for both end-use and portfolio diversification.

As per a report by CREDAI-Colliers-Liases Foras, during the December quarter, price appreciation was evident in all eight major cities, with Delhi NCR witnessing the highest rise at 31 per cent YoY growth. Simultaneously, rental yields witnessed an upward curve, driven by a surge in expat housing demand, corporate leasing activity, and lifestyle-led migration to premium addresses. With infrastructure enhancements underway and a growing appetite for branded and amenity-rich residences, these trends are expected to remain strong shortly.

Thus, with strong market fundamentals, evolving consumer preferences, and a strong infrastructure pipeline, Delhi-NCR’s luxury housing segment is well-positioned for sustained ROI growth. For investors, luxury real estate in NCR represents a transformational opportunity where lifestyle, legacy, and long-term wealth creation converge.

The author is Founder of KREEVA and Kanodia Group