Bridging Aspirations: The Growing Demand for Bridge-to-Luxury Homes in India

Sparkling with more than 15 years of work experience, Bhavesh, a great visionary leader has worked with a few of the most reputed real estate companies in the country. With a vision to start the most professionally driven and managed real estate consulting firm in the country, he explored various key luxury real estate deals and properties

India's luxury residential realty is undergoing substantial transformations with the emerging trend of the semi-luxury/ premium residential segment. Consequently, a new generation of homeowners has entered India's residential sector, seeking sustainability, quality, and luxury, without having to pay astronomical prices.

Semi-luxury residences, which fall somewhere between premium and full-fledged luxury, appeal to a growing number of aspiring home buyers who desire opulence without the hefty price tag. This category has quickly gained pace in India’s Tier I cities. Intended for upwardly mobile urban professionals, it reflects the shifting lifestyles and aspirations of buyers.

Changing Housing Aspirations

Industry reports reveal that the percentage of luxury residences sold in India has tripled in the last five years. Additionally, a 2024 survey by CRISIL Ratings shows that the product mix in India's housing market is shifting towards the mid-to-high-end and luxury segments, with the affordable launches category anticipated to stay modest.

India's new-age home buyers increasingly seek thoughtfully constructed spacious homes that offer a touch of luxury sans the ostentatious displays of wealth. They are also attracted to stylish and convenient projects that promise a superior living experience while also providing long-term value. They also emphasise sustainable features, smart home technology, and quality of life all packaged in an attainable offering. This trend has gained significant momentum in the post-pandemic era.

Semi-luxury homes target young, aspirational professionals in their early 30s who seek premium living spaces but also are value-conscious. Unlike traditional luxury buyers, who seek exclusivity, semi-luxury homeowners seek balance.

Considering these factors, semi-luxury home developers bring together the sophistication of luxury housing with the practicality of mid-range apartments. They offer an appealing mix of features without the hefty price tag of ultra-luxury projects and include amenities like clubhouse, pools and sports amenities.  Consequently, luxurious residential projects are taking precedence over affordable home development for real estate developers. Because of this, Indian cities have witnessed a noteworthy increase in luxury and ultra-luxury projects over the past year, while the number of affordable housing constructions has decreased significantly in others.

Prudent developers are therefore building residences that seamlessly blend modern aesthetics with sustainable practices to offer a curated lifestyle experience that is both aspirational and attainable.

"India's semi-luxury housing segment reflects a dynamic shift in consumer preferences, driven by a younger, value-conscious demographic that aspires for premium living spaces without overshooting their budgets. These homes strike the perfect balance between elegance, sustainability, and affordability, besides catering to the rising demand for thoughtfully designed spaces in strategic locations. As the demand for smart, high-quality homes continues to rise, this segment is poised to lead the way in shaping the future of real estate in India's Tier 1 cities", - Bhavesh Kothari, Founder and CEO, Property First

Prime Locations– The Sweet Spot

The primary reason the semi-luxury homes segment has become so successful is because of its advantageous location. While traditional luxury homes are mostly made in prime locations that could prove too costly, the semi-luxury home segment looks towards emerging micro-markets in Tier I cities, thus affordable yet within distance of the primary business districts, transportation nodes, and social infrastructure. This way, semi-luxury homes have spawned new micro-markets in Tier 1 cities. Consequently, areas that were formerly considered non-valuable are gradually becoming real estate investment hubs because of infrastructure development and their proximity to economic hotspots.

For instance, developers in Bengaluru are scouting for peripheral areas and suburban localities that are undergoing rapid urbanization but still offer affordable land prices. These locations are close to commercial centres as well as schools, hospitals, and entertainment zones. This makes them appealing to young people looking to live near work while enjoying a higher quality of life. Consequently, Hebbal, Yelahanka, Devanahalli, Whitefield, Sarjapur Road, and Electronic City are attracting attention as promising growth corridors.

A Unique Value Proposition

What differentiates the semi-luxury home category from other residential classes is perhaps the unique balance between luxury, sustainability, and affordability. They cater to buyers who seek the prestige of a luxury address combined with the practicality of well-designed spaces that align with their financial capabilities. Also, buyers in this class seek value in every square foot. For developers, this means offering their best designs, quality, and amenities without overcharging.

This resonates with the modern Indian consumer, who is increasingly savvy and demands more than just basic living spaces. Homebuyers today are on the lookout for properties that depict their success and aspirations without overshooting their budgets. The get-more-for-less appeal is strong in the post-pandemic world when many individuals and families are reviewing their living spaces to accommodate the new ways of working, learning, and living.

Final Thoughts

This semi-luxury home segment is more than just a fad. Aspiring homeowners will have increasing needs as they advance in their careers. That's why developers are coming up with the best premium offerings, ideal locations, and price points to satisfy such demands.

Forget the days when luxury real estate meant only the ultra-rich could access opulence. India's residential sector is experiencing a democratisation of high-end living, driven by developers who recognise the potential of this expanding market. As more new micro-markets acquire traction, it is obvious that the semi-luxury home category will continue shaping India's urban living future. As the market expands, it will provide the ideal balance of elegance and affordability, thus allowing buyers to live lavishly without jeopardising their financial goals.