New Delhi, March 16 -- Demand for luxury real estate will be sustained, driven by rising High-Net-Worth Individual (HNI) population, strong capital market returns, and a growing startup ecosystem, according to a report by Elara Capital.

Since the onset of the Covid-19 pandemic, the real estate sector has witnessed a major increase in the share of luxury real estate (properties priced over Rs 30 million) in Tier 1 cities, rising by 10 per centage points from FY20-24.

This trend has led to higher average pricing, with a compound annual growth rate (CAGR) of 8 per cent in absorbed volume, while construction costs have remained largely stable, as per the report.

This is positive for overall industry profitability, the report added.

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