The Rs 5-10 Crore Home Is India’s New Luxury Sweet Spot
Welcome to the world of the mid-luxury market in India, which is growing at a breakneck speed.
The Gist
The luxury home market in India is evolving, with mid-luxury homes gaining popularity among high-net-worth individuals.
- Sales of homes priced between Rs 5-10 crore surged by 112% in 2024.
- Buyers are increasingly favoring spacious homes with quality amenities, particularly in suburban areas.
- Gurugram is emerging as a leader in this market segment, overtaking Mumbai's previous dominance.
The idea of a luxurious home in India is fast changing amid rising affluence and aspirations. While Rs 500 crore homes make headlines, for most high-networth individuals (HNIs) and HNI-adjacent Indians, it can also mean a spacious home with good amenities that can cost anywhere between Rs 5-10 crore. Welcome to the world of the mid-luxury market, which is growing at a breakneck speed.
In 2024, the sales of such homes went up by a whopping 112%, according to real estate services company Anarock. In the first half of 2025, Mumbai sold a large chunk of these homes, at 1,075 units.
In a city like Mumbai, where it takes at least Rs 2.5 crore for a decent-sized home, Rs 5-10 crore homes are a prized asset across the suburbs. This trend for larger homes that started during the pandemic is showing no signs of dying down.
“Builders are increasingly investing in the development of housing solutions in this range, as buyers increasingly see it as a balance between luxury and value. With alternatives opening up in nearby micro-markets, this range is becoming the comfort zone for many buyers,” Amit Mamgain, director at real estate company Yugen Infra, told The Core.
The rise of suburban living is one of the many effects of the development of this category. Most of the well-connected suburbs now boast good infrastructure. Also, there is a rising set of buyers who demand for luxurious homes, keen on upgrading their lifestyle, but refusing to update their address.
“A lot of people who are used to living in an area, are keen on continuing to live there, but want better homes. Almost 75-80% of the demand we get is from such buyers. We now have metro kind of conveniences that allow it too,” adds Arpit Jain, director at Mumbai-centric Arkade Developers, which has projects in this price range across Western suburbs like Santacruz, Goregaon, Borivali and Kandivali.
Size Matters Too
Mix-luxury homes are not a Mumbai-specific trend. In fact, the demand for 3BHK and beyond is around 40% in the financial capital. In other top cities, it’s much higher: Bengaluru (58%), Chennai and Delhi (59%), Hyderabad (60%), Kolkata and Pune (50%), and is as high as 67% in Ahmedabad, the Anarock Homebuyer Sentiment survey found.
It’s not just the size that buyers are after, either. More people are going for premium housing over mid-tier because they have begun to value design, curated amenities, professional property management as return enhancers and not just status symbols.
“Buyers in this price band are seeking homes that combine investible yield with lived experience,” said Harsha Reddy Ponguleti, founder & MD of Raghava, a luxury developer in Hyderabad.
This Rs 5-10 crore category was earlier dominated by Mumbai, but it has been slowly conceding share to the emerging leader of this category – Gurugram
“Over FY08–12, virtually every second home sold in the top-7 cities in the Rs 3-5 crore ticket size was sold in the Mumbai Metropolitan Region (MMR); this share has now declined and has been captured by Hyderabad and Gurugram,” a report by Nuvama Institutional Equities found.
Sweet Spots Of Value
Nuvama data also showed that Gurugram’s share in this ticket size stands at 45% in FY25 in the Rs 5-10 crore category, towering over the rest of Delhi, which is at 10%. Hyderabad too saw a sharp increase to 13% share in such homes, ahead of its tech-twin Bengaluru, which was at a mere 5%.
“This segment is doing well because buyers are getting wealthier, existing homeowners want to upgrade, and there is a dearth of genuinely high-grade luxury,” said Prashant Thakur, executive director of research & advisory, at Anarock Group. A significant chunk of the new launches also falls into this category.
Hyderabad and Pune are increasingly active markets for affordable luxury as design and amenities punch above the price band, observe builders. The aspiration towards lifestyle upgradation, coupled with the tech-led wealth effect, has seen a sharp rise in mid-luxury home sales.
In cities where square foot prices are not as exorbitant, the value of mid-luxury homes comes from other benefits. “A growing cohort is composed of buyers who have previously lived in independent houses and are choosing community living for convenience, security and amenity-led lifestyle upgrades,” said Reddy.
This price range, however, is reserved for key micro markets only, across cities, insist experts. The upcoming new areas are also being driven by the large number of infrastructure projects that have improved connectivity. And mapping these sweet spots is crucial.
“A project in a well-connected business node with true architecture and community programming will outperform a larger project in a weaker location, even at the same price point,” said Reddy.
The Profile Of A Mid-Luxury Home Buyer
The rise in the number of mid-luxury home buyers is a natural cause and effect of the rise in the number of high-net-worth individuals.
As per Mercedes-Benz and Hurun Wealth report, the number of HNIs who possess anywhere between Rs 10-100 crore, grew 202% between FY18 to FY25, while the affluent class who possess anywhere between Rs 8.5-10 crore, grew by a whopping 445%. And across the top 7 real estate markets, there is a sufficient supply of these HNIs, with Mumbai on the top.
Most buyers in this category belong to various classes of rising wealthy Indians such as senior corporate managers, successful mid-sized business owners and families with accumulated or generational savings.
“Many are also upwardly mobile professionals, including C-suite executives and senior managers in MNCs, who value community amenities and high ROI (return on investment) yielding & professionally managed assets,” said Reddy.
Beyond Mumbai, there is a new class of homebuyers who are upgrading in a different mode. They are those who once lived in large individual homes, who are now choosing community living as they prefer apartments that offer amenities, convenience and lifestyle upgrades.
Mamgain said that a few buyers possess generational wealth, but not all of them. “Many belong to the upper management, entrepreneurs, or professionals with steady, high cash flows. What’s interesting is that purchasing power parity has improved, people are more liquid, and hence more confident in making such big-ticket purchases. This indicates a steady pipeline of aspirational buyers,” he added.
Thakur described the buyers of mid-luxury homes as business owners, start-up entrepreneurs, C-suite corporate management, diamond merchants, film industry denizens, and the like. “The Indian stock markets caused wealth from equities to grow by 18% year-on-year, further enriching India’s affluent,” he adds.
Investor Interest Stable
Many factors, including the post-pandemic bull run in the stock markets have created wealth. But, in the last year, returns have been muted.
US tariffs have dented the sentiment across asset classes, barring gold, and job losses have marred the sentiment. Yet, the sales of homes in the said category might not fall, experts insist.
“As stock markets become volatile, real estate offers an alternate investment option,” said Jain.
Reddy, too, believes that the investor class has been active in the segment, in addition to end-use home buyers. "While some speculative flows and marginal investors have pulled back in soft markets, institutional capital still deploys into well-underwritten, location-led, yield-generating residential assets,” he said.
The mix-luxury residential bracket is attractive for investors as it strikes a balance between aspirational lifestyles and investment potential. Even as the upper end real estate might enter the slow lane, the lower end might remain impacted by job-loss-wary employees, the mid-luxury segment is expected to continue its march, as the real estate upcycle enters the ‘mid-stage’ when fatigue sets in.
