Steep increase in India's luxury condo prices as demand soars

Rising income levels, desire for safer homes among factors driving surge in major cities

- Nirmala Ganapathy,Rohini Mohan

A year ago, media professional Esha Roy and her parents moved from their detached house in Chittaranjan Park, an affluent and upmarket locale in the capital, to a threebedroom apartment in a highsecurity, gated community some 20km away in Noida.

Even though the Bengali-speaking family had felt a strong sense of community in their Bengali-dominated neighbourhood, Ms Roy's parents, aged 77 and 81, wanted to live in a secure gated community with amenities like power backup and a pool of plumbers and electricians available on call.

Security is tight in such condominiums, with security guards restricting entry, and residents are shielded from the harsh realities of Indian life such as power cuts and water shortages.

Ms Roy's mother, who used to stay indoors in their Delhi home, now goes out for a daily walk in the morning and evening in their gated estate, where residents can also use golf carts to get to the main gate and back. "My parents seem happier here. Every little issue you have in the house is easily sorted out," Ms Roy said.

Condominiums like theirs have seen a dramatic increase in demand in the past five years in India. Between 2019 and 2024, residential properties in the top Indian cities of Bengaluru, Chennai, Hyderabad, Mumbai, Kolkata, Pune and the National Capital Region around New Delhi collectively saw a price increase of 44 per cent, according to property consultant Anarock Group.

Urbanisation, rising income levels and a desire to have a larger and safer living space, intensified by the disruptions caused by the Covid-19 pandemic, have triggered a steep hike in real estate prices in the major cities in India.