In the first quarter of 2025, high-end housing made up 30 per cent of launches, while budget housing was just 19 per cent, highlighting widening disparities in housing access across income levels.

India’s luxury housing sector has kicked off 2025 with a remarkable upswing, witnessing a 28 per cent year-on-year growth in sales during the January-March quarter. According to CBRE South Asia’s latest Market Monitor report, a total of 1,930 luxury homes – priced above ₹4 crore – were sold across the top seven Indian cities. Leading this surge is the Delhi-National Capital Region (NCR), which continues to cement its status as the country’s prime hotspot for high-end real estate.

Delhi-NCR accounted for 950 of the luxury units sold in Q1 2025 – almost half of the national total. The region’s dominance stems from several factors, says the report, listing these as : robust infrastructure upgrades, improved connectivity via the newly launched Dwarka Expressway, and increasing buyer preference for upscale lifestyles. Submarkets such as Gurugram, particularly New Gurgaon, the Dwarka Expressway corridor, and the Southern Peripheral Road, have become magnets for luxury seekers, combining convenience with premium living.

The region’s performance also reflects a deeper shift in buyer behaviour. As affluence grows, homebuyers are moving away from mere functionality to aspirations – seeking larger homes, better amenities, and strategic locations that offer both comfort and connectivity.

Growing Appetite for Premium Housing

The luxury trend isn’t confined to the capital region. Across India, the high-end and premium segments combined made up 40 per cent of total apartment sales in Q1 2025, with similar shares in new launches – underscoring how demand is now clearly tilting toward higher-value properties.

In 2024, luxury homes priced ₹4 crore and above saw a 53 per cent jump in sales across seven major cities, rising from 12,895 units in 2023 to 19,700 units. Delhi-NCR led with 10,500 units sold, but other cities made strong contributions as well. Mumbai, for instance, recorded 3,820 luxury home sales in the first nine months of 2024 – an 18 per cent increase year-on-year.

Hyderabad and Bengaluru are also fast catching up. In South India, Bengaluru recorded the steepest growth, jumping from just 20 luxury units in Q1 2024 to 190 in Q1 2025. This tenfold increase is attributed to expanding tech-driven wealth and changing lifestyle aspirations among the city’s professionals.

Interestingly, a slide explaining the prevailing trends in unit launches in the first quarter of 2025 says that high-end housing accounted for 30 per cent of the share in this year’s first quarter. On the other hand, budget housing accounted for just 19 per cent of the share in the same quarter. This points to the growing inequality in servicing the housing needs in the country and also the yawning gap in the purchasing powers of the rich and the poor.

Market Balance; Inventory Management

India’s overall residential market demonstrated equilibrium in Q1 2025, with about 65,800 apartment units launched – nearly matching the 65,300 units sold. This parity indicates that developers are carefully aligning supply with demand, ensuring manageable levels of unsold inventory. This equilibrium reflects an improved understanding of buyer sentiment and demand patterns.

Delhi-NCR, Mumbai, and Pune collectively accounted for 62 per cent of all residential sales in Q1 2025, with Mumbai alone contributing 19 per cent, followed by Pune at 23per cent.

In terms of new launches, Mumbai, Pune, and Bengaluru collectively accounted for 64 per cent of activity. This concentration of both sales and new supply in key metros suggests a highly targeted approach by developers focusing on markets with the most vibrant demand.

Why the Surge?

Several structural and cyclical factors are converging to fuel this luxury housing upswing:

• Affluence and Aspirations: Rising disposable incomes, particularly among the upper-middle class and young entrepreneurs, are translating into higher demand for larger, amenity-rich homes.
• NRI Investments: Non-resident Indians (NRIs) are increasingly viewing Indian real estate as a lucrative, long-term investment. With global uncertainty and currency advantages, NRIs are turning to luxury properties in India for both capital appreciation and lifestyle use.
• Infrastructure Developments: Improved infrastructure, including expressways, metro connectivity, and urban planning initiatives, is enhancing the appeal of previously underdeveloped areas.
• Policy Support and Monetary Easing: The Reserve Bank of India’s recent repo rate cut is expected to make home loans more affordable, narrowing the gap between EMIs and rentals. This monetary easing is likely to encourage buyers who were on the fence.
• Land Acquisitions and Developer Strategy: Large-scale land acquisitions in 2023–24 are translating into a surge in new project launches, especially in high-end and premium categories.

The CBRE report offers a breakdown of market dynamics by price segment:

• High-End Segment (₹1.5–3 crore): Represented 27 per cent of total sales.
• Premium Segment (₹3–6 crore): Contributed around 23 per cent.
• Luxury Segment (₹6–50 crore): Accounted for 12 per cent.
• Ultra-Luxury (₹50 crore and above): Remains a niche but growing category.

While affordable and budget segments still dominate the overall housing market, the growing share of higher-value homes signals a shift in urban housing preferences, especially in metro cities.

Steady Outlook

The residential real estate market is expected to maintain a stable trajectory throughout 2025. A combination of rising income levels, improving infrastructure, government support, and evolving lifestyle choices are all reinforcing demand. CBRE anticipates elevated new launches in the coming months, supported by ample land availability and strategic developer planning.

The luxury segment, in particular, will continue to be a focal point, attracting not just end-users but also investors seeking quality assets in prime locations, CBRE suggests. As urban India becomes increasingly aspirational and globally connected, luxury housing is no longer a niche – it’s becoming a norm for a growing class of discerning buyers.