Mumbai and Hyderabad cities experiencing significant expansion in India's real estate market

India’s real estate market has grown rapidly in the past 10 years, with its luxurious apartments and amenities and favourable climate attracting High Net-Worth Individuals and wealthy entrepreneurs. According to Knight Frank India’s proprietary Affordability Index for 2023, Mumbai and Hyderabad have experienced substantial real estate growth during the first half of this year and have become the favoured locations for international HNWIs purchasing a luxury home in India.

The report shows that Mumbai occupied the first position, displaying a 3% increase when comparing luxury real estate growth to the same period in 2022. Hyderabad followed this as the second most expensive real estate market with growth of 2%. Delhi’s National Capital Region also saw a rise, from 29% to 30%, and Bengaluru’s real estate grew from 27% to 28%.

The data suggests that the substantial growth is likely due to the abundance of employment opportunities, increased income, agreeable climate and improved tax incentives that India’s larger cities such as Mumbai, Hyderabad and Delhi have to offer. International HNWIs looking to purchase a primary or secondary luxury home in India’s major cities will need to use safe modes of money transfer.

The Affordability Index also noted that real estate companies are understanding the levels of luxury that HNWIs demand and are beginning to provide various amenities to cater for them. The Index suggests that the growth in luxury real estate is beginning to create an all-inclusive market in which every type of demand from HNWIs can be catered for through infrastructure and luxury design. Shishir Baijal Chairman and Managing Director of Knight Frank India, observed that high-performing cities such as Delhi, Chennai, Pune and Bengaluru have become synonymous with the idea of luxury due to higher demand from wealthy natives.

Baijal also noted that during a period of interest rate stagnation, India’s housing market has grown considerably. However, Baijal suggested that this period may be coming to a close, and therefore the price of luxury Indian real estate will soon rise. International HNWIs looking to buy luxury Indian real estate while interest rates remain low should use a safe money transfer method to ensure that their money is securely transferred overseas.