₹100-crore income club quadruples in 5 years. What it means for the luxury housing market

The expanding ₹100-crore income club is widening the luxury buyer base, but the most expensive homes are bought by those who have created the greatest wealth

India's ₹100-crore income club is expanding rapidly and the ripple effects are beginning to show in the country's luxury housing market.

The expanding ₹100-crore income club is giving luxury housing a boost, though trophy home purchases continue to be fuelled by wealth creation rather than income alone, say experts. (Photo for representational purposes only) (Unsplash)

The number of taxpayers reporting annual incomes exceeding ₹100 crore has climbed to a record 576 in Assessment Year (AY) 2025-26, four times the 142 reported five years ago, according to data tabled in Parliament. The steady rise reflects the growing ranks of India's ultra-high-income individuals.

For the real estate industry, the obvious question is: Does a larger pool of ultra-rich taxpayers automatically translate into more buyers for ₹20 crore- and ₹100 crore-plus homes?

Real estate experts say the answer is nuanced.

The expanding base of ultra-high-income earners is undoubtedly widening the buyer pool for luxury housing, particularly in the ₹5 crore- ₹ 15 crore segment. As more entrepreneurs, promoters, senior executives and investors move into the highest income brackets, the addressable market for premium homes continues to grow.

Real estate experts say purchases of ₹20 crore-plus homes and especially properties priced above ₹100 crore are rarely driven by annual income alone. Instead, they are typically triggered by extraordinary wealth creation and liquidity events, including IPO windfalls, promoter stake sales, business exits, private equity deals, inheritance and capital market gains. These transactions are driven less by recurring earnings and more by accumulated wealth and balance-sheet strength.

Trophy homes operate by a different set of dynamics

"Higher incomes certainly expand the buyer pool. However, mega purchases of luxury homes are primarily driven by massive wealth creation and liquidity events. They have little to do with recurring annual salaries, even very high ones. The recent ultra-luxury real estate boom has been fuelled by IPO-led wealth, a buoyant stock market and industrialists monetising equity to acquire trophy assets," said Shobhit Agarwal, CEO, ANAROCK Capital.

According to Agarwal, luxury real estate has emerged as the preferred asset class for many ultra-rich individuals because it combines wealth preservation, capital appreciation and lifestyle value. "Luxury real estate is the No. 1 asset pick for such individuals as it not only locks in wealth but also enables long-term value creation while offering exclusivity and status," he said.

Sandeep Reddy, co-founder of Zapkey, said the expanding pool of taxpayers earning more than ₹100 crore annually provides a structural tailwind for the broader luxury housing segment. "The growth in this income cohort supports demand in the ₹5 crore- ₹15 crore bracket. However, the ₹20 crore- ₹100 crore-plus segment will continue to be driven predominantly by capital market liquidity, promoter wealth events and long-term balance-sheet diversification rather than annual income."

Ritesh Mehta, Senior Director & Head – West & North, Residential Services and Developer Initiatives at JLL, believes the relationship between rising incomes and ultra-luxury home purchases is not linear.

"The expanding ultra-HNI pool is certainly supporting stronger demand for ₹20 crore-plus homes, with buyers increasingly moving into the ₹25 crore- ₹50 crore and even ₹100 crore-plus bracket. However, at the very top end, demand is equally driven by scarcity of quality inventory, prime location, wealth creation and liquidity, not just income levels," he said.

For homes priced above ₹100 crore, Mehta said annual income is often less relevant than overall net worth and liquidity. "Business exits, IPOs, stake sales, inheritance and monetisation of assets are typically the trigger for such purchases. Income creates the capacity to buy, but wealth creation and liquidity events create the opportunity," he added.