The Art of Affluence

A luxury homebuyer in Delhi feels that the Covid-19 pandemic changed her living priorities—more space, better ventilation, higher aesthetics, green features. “I am willing to pay a premium if my home gives me peace, space, and good community,” she says.

A real estate developer in Mumbai notes that the cost of land is rising faster than the rate at which they can raise selling prices: “Margins are under pressure, but we are seeing enough demand that buyers seem less sensitive to incremental price hikes if the project has a good brand or location.”

Wealth managers report that first-generation wealth holders are asking more questions than previous generations: about returns, risk, overseas options, family office setup, philanthropy. It’s less about accumulating; more about preserving and growing intelligently.

IN EARLY 2024, INDIA’S WEALTH STORY FELT FAMILIAR: STEADY GROWTH, ROBUST inched-up trends, and cautious optimism among investors, realtors, and high-net worth individuals (HNI). But by mid-2025, what had been incremental became pronounced. The country saw a quantum leap—in financial assets, luxury real estate demand, and the proliferation of millionaire and billionaire households. The changes are not merely statistical; they are altering lifestyles, aspirations, and what it means to be wealthy in India.

“India’s wealth story has shifted gears. Big-ticket housing transactions are rising sharply, financial assets are expanding, and luxury real estate demand is setting new benchmarks. This acceleration isn’t coming from one corner of the economy but from multiple tailwinds converging at once—economic strength, rising asset values, and a clear change in how the affluent approach their wealth. For many, it’s no longer just about what they own, but how they live. Homes have become expressions of status, security and lifestyle aspirations,” Chairman and Managing Director of Knight Frank India Shishir Baijal tells Open.

One of the first indicators of wealth creation is India’s HNI base, which continues to expand. According to Knight Frank’s Wealth Report 2025, India had about 85,698 HNIs in 2024, up around 6 per cent from the preceding year. Meanwhile, Allianz Global Wealth Report 2025 placed household financial assets growth at 14.5 per cent in 2024—the fastest increase in eight years, led by its securities segment, followed by insurance and pensions. Bank deposits, too, rose, though more modestly since they still represent over half the typical financial portfolio.

 The number of millionaire households is also surging. The M3M Hurun India Rich List 2025 report puts millionaire households (with net worth of `8.5 crore or more) in the vicinity of 8,71,700; nearly doubling in just a few years. Mumbai remains the undisputed millionaire capital, accompanied by Delhi, Bengaluru, and other emerging cities.

“The cumulative wealth of India’s richest climbed to `167 lakh crore, with 1,044 individuals gaining wealth versus 643 losing, showing that the wealth-creation engine remains strong. The surge came from tech, industrial products, automobiles, infrastructure, jewellery and real estate, powered by domestic de­mand, policy-driven manufacturing growth, and a vibrant stock market. India now has 358 dollar-billion­aires, up from 200 five years ago, together holding wealth equal to nearly half of India’s GDP,” Anas Rahman Junaid, founder and chief researcher, Hurun India, tells Open.

By 2025, many Indians were not merely ‘joining’ the wealthy but they were ‘moving up’. The class of ultra-high net-worth individuals (UHNI), those whose wealth crosses far higher thresholds than HNIs, is growing too. What are the drivers? The rise did not happen in isolation. Several converging trends powered up India’s wealth creation.

India’s GDP growth remained among the highest of major economies. Stable macroeconomic policy, gradual easing of interest rates, good investor sentiment, and reforms (tax, infrastructure, foreign

 investment rules) contributed to a supportive backdrop. This helped catalyse growth in sectors that are wealth generators: tech­nology, finance, real estate, even manufacturing in certain states. (While some headwinds exist globally, India’s internal demand, from consumption to housing, remained strong.)

Real estate in luxury and premium segments saw huge de­mand. Luxury housing sales in the top seven cities surged 85 per cent year-on-year (YoY) in the first half of 2025, with around 7,000 units sold in projects priced at `4 crore or more. “Delhi NCR is setting the tone for India’s luxury housing market. Demand has picked up sharply, and it’s now the most active pocket for big-ticket residential deals. Mumbai, on the other hand, continues to anchor the top end of the market where pricing power and scar­city hold strong. We’re seeing two very different kinds of strength shaping the same market. Delhi is defining momentum; Mumbai is defining benchmarks. Together, they show where real estate confidence is most concentrated,” observes Gulam Zia, senior executive director, Research, Advisory, Infrastructure and Valu­ation, Knight Frank India.

Apart from real estate, Indians have increased participation in financial markets. Securities, equity instruments, pensions and insurance have gained traction. According to the Allianz report, securities saw about 28.7 per cent growth, insurance and pensions nearly 19.7 per cent, while bank deposits rose 8.7 per cent. More sophisticated investment channels—mutual funds, alternative assets, overseas investments—became more visible among HNIs and UHNIs. Rising financial literacy, better digital platforms, easier access to information, and lower friction (in transactions, regulations) helped too.

Interestingly, global economic uncertainties—inflation, geopolitical risks, fluctuating currencies—did not dampen wealth creation; if anything, they altered investor behaviour. Many wealthy Indians began viewing real assets (real estate) and for­eign investments as hedges. Stronger demand from Non-Resident Indians (NRIs) in luxury housing and more interest in overseas opportunities reflect this. Real estate, especially in prime loca­tions, became a safe harbour.

While more Indians are getting wealthier, the geography of that wealth remains concentrated. Metropolitan cities con­tinue to command outsized shares of luxury home sales, HNI households, and billionaire residencies. Yet, even in these metros, wealth remains uneven. There is stark disparity between neigh­bourhoods, between old money and new, and between visible luxury and underlying access issues (affordability, infrastructure, connectivity) that limit who can participate in this upswing.

WEALTH IS NOT just numbers. In 2024-25, be­haviour changed: what luxury buyers value has shifted. The wealthy are moving beyond tradi­tional assets like stocks and domestic real estate to diversify their portfolios internationally. This trend is particularly strong among the younger generation, who seek access to stable markets and diverse opportunities abroad. There is a growing ap­petite for alternative investments such as private equity, venture capital, and cryptocurrencies, especially among Gen Z and millen­nial millionaires. They are actively investing in India’s booming startup ecosystem, including tech, fintech, and cleantech.

In real estate, too, the shift is palpable. The wealthy are set­tling for bigger homes, better finishes, proximity to green spaces, amenities like home automation, wellness centres, clubhouses, concierge-style services. Buyers are less forgiving of compromise on comfort. It’s not always about square feet. It’s about view, pres­tige (address matters—for instance, a certain road in South Delhi, a certain tower in Mumbai), community features, sustainable living and design pedigree.

Besides, many wealthy Indians are looking outward not just for investments but residences abroad, education, vacation homes. There is heightened interest in overseas property, and in cross-border financial instruments. This reflects both aspiration and diversification. India Sotheby’s International Realty’s 2025 Luxury Outlook Survey indicates that interest in international real estate among HNIs has doubled compared to earlier years. These changes in choice are pushing developers to innovate and invest more heavily in luxury offerings. You see ultra-premium launches, exclusive micro-markets (gated communities, water­front properties), special towers in mixed-use complexes, etc.

Financial institutions that service HNIs (private banks, wealth management firms) are gaining more clients and more assets. Real estate investors focusing on luxury segments are seeing trac­tion, specifically those who bought early in micro-markets, that are now becoming more premium.

A ‘bridge’ segment, too, is emerging: people who are not ultra-wealthy but have enough to aspire beyond mass or mid-market homes. For them, ‘affordable luxury’ or the premium mid-segment is appealing. Developers are responding by inte­grating better design, amenities, better connectivity, and partial luxury touches into projects priced lower than pure luxury. This seg­ment is where growth is likely to be more broad-based and inclusive. It is also where policymakers and finance bodies can make a difference via in­centives, better housing finance, and infrastructure support.

Says Payal Kanodia, promoter of M3M India, “Real estate, long regarded as one of the most trusted avenues of wealth creation, has reaffirmed its dy­namism in this year’s list [M3M Hurun India Rich List 2025]. The sector has emerged as one of the most vibrant contributors, with 99 leaders making their mark—including 23 debutants entering the ranks for the first time. Collectively, the sector has added an impressive `8.72 lakh crore ($95.7 billion) in wealth.”

Adds Vivek Rathi, national director-Research, Knight Frank India, “The 93 per cent YoY jump in luxury housing sales in the first nine months of 2025 isn’t just a spike in sentiment, it’s a signal of how capital is moving. Nearly 500 units priced above `20 crore or more have changed hands across the top cities, led by strong demand in Delhi NCR and Mumbai.”

Elite consumption patterns, lifestyle, and aspiration are shap­ing the culture around wealth. Visible luxury is becoming more normalised. Luxury cars, designer labels, travel to exotic locations, education in top private or foreign institutions are now more common among the new wealthy. As a result, social expectations and status symbols are evolving. Down the line, several trajecto­ries seem likely if present trends hold and risks are managed well.

Luxury real estate growth will continue, perhaps more selectively. The first half of 2025 recorded strong growth in luxury housing, boosting both demand and new launches. But over time, as supply increases, buyers will seek differentiated value—micro-location, amenities, design, sustainability, and prestige. Develop­ers who adapt will lead. Financial assets and investments will diversify further. As more people move into HNI/millionaire status, their investment portfolios will expand: more foreign diversification, alternative assets (startups, private equity, hedge funds, art, collectibles), environmental/social impact investing. Insurance and pensions will deepen; financial intermediation (wealth managers, family offices) will multiply.

Tier 2 and 3 cities will be drawn into the wealth equation. Already, some spillover is visible. While most luxury unit sales and HNI households remain in metros, smaller and fast-growing cities are starting to show more wealth accumulation. As con­nectivity, infrastructure, lifestyle amenities improve, and real estate becomes more affordable relative to metros, smaller cities will see their own luxury-premium markets emerge. Policy and governance levers will matter more. How government deals with land, permits, infrastructure, property taxation, and foreign investment will heavily influence whether wealth cre­ation is smooth or hampered. Ease of doing business, clarity in regulation, transparency in real estate will matter. Also, housing affordability schemes and financial inclusion will define social stability as wealth concentrates.

In 2025, being wealthy in India is about diversified portfolios, global ex­posure, lifestyle choices, and the ability to convert wealth into comfort, status, and utility. Clearly, the benchmarks have shifted. Millionaire households are more common, but they want more than money—they want legacy, experi­ences, recognition. Luxury real estate is less about square footage; it is more to do with design, technology, service, nar­rative. Investing is not passive; the wealthy increasingly expect transparency, performance, and alignment with values. Cities are not just homes; they are networks, ecosys­tems, brands. Where you live signals who you are.

India’s explosive year of wealth creation from 2024-25 offers opportunities to redefine urban living, to build better infrastruc­ture, to serve new demands of quality and luxury, and to empower new classes of entrepreneurs and professionals. For businesses, the message is clear: cater upward, but do not ignore the base. For policymakers, balance is critical. Growth must be inclusive. Regulation must be stable. Taxation must be fair. Infrastructure must follow demand, not lag it.

Ultimately, India is not just creating wealth; it is reshaping what wealth means in the 21st century. The challenge ahead lies in sustaining this rise—turning momentum into maturity.