India’s Luxury Housing Market in 2025: Record Growth, Key Trends, and a Bright Outlook

The year 2025 has marked a watershed moment for India’s luxury housing market, witnessing record growth and generating global interest amongst investors, homebuyers, and developers. Driven by surging aspiration, open wallets, and a supportive policy environment, the luxury real estate segment is not only posting headline numbers but is also fundamentally changing the residential fabric of the country.

Surge in Sales: India’s Luxury Housing

According to a recent joint report by CBRE South Asia and ASSOCHAM, India’s luxury housing market registered an astounding 85% year-on-year growth in sales during the first half of 2025. Nearly 7,000 luxury homes (priced between ₹4–6 crore in most markets, and above ₹6 crore in Delhi-NCR and Mumbai) were sold across the top seven Indian cities, pointing to the growing appetite for premium living. 

This is a significant upturn and makes luxury homes one of the most dynamic segments in the country’s real estate sector. Which means it is well worth keeping your eye on!

Delhi-NCR and Mumbai Lead the Way

Delhi-NCR emerged as the undisputed leader, recording sales of around 4,000 luxury units and accounting for 57% of all luxury deals nationwide (a whopping threefold spike compared to last year).

The Gurgaon market is the hero of this story, with Dwarka Expressway and Golf Course Road playing starring roles in this upsurge, driven by the growing ranks of high-net-worth individuals (HNIs), entrepreneurs, and upwardly mobile professionals seeking exclusivity and investment value.

Mumbai followed, with sales of about 1,240 luxury homes, translating to an 18% share of the luxury market in H1 2025. Total luxury property sales in Mumbai hit ₹14,750 crore in H1 2025, up 11% from the previous year, with prime districts like Worli, Bandra West, and Tardeo leading the surge. The financial capital’s real estate has seen several new launches, more NRIs returning, and a strong influx of global capital.

In a bit of a surprising news, traditionally mid-segment markets like Pune and Chennai also entered the luxury orbit, together contributing about 5% of the country’s luxury sales—a clear sign of geographically widespread aspiration and prosperity.

Key Drivers of Growth in 2025

Several interrelated factors have powered this luxury housing boom:

• Rising Aspirations & Income Growth: Growing disposable incomes, coupled with a clear shift towards lifestyle-driven homeownership, have made luxury residences the new status symbol for a large segment of Indian buyers.
• HNIs and NRIs Lead the Charge: High-net-worth individuals, ultra-HNIs, and non-resident Indians (NRIs) are channelling their investments into luxury homes as a means of both wealth preservation and lifestyle upgrade, especially in the face of global uncertainties and a favourable US dollar.
• Supportive Monetary & Policy Environment: The Reserve Bank of India’s policy of monetary easing, including rate cuts that have made home loans more affordable, and a stable, transparent regulatory framework under RERA have instilled tremendous buyer confidence.
• Urban Infrastructure & Quality Supply: Massive improvements in metro lines, expressways, and ‘smart city’ projects are elevating the overall value proposition of high-end properties, particularly in urban corridors in Delhi-NCR, Mumbai, and emerging cities.
• Developer Confidence & Innovation: Developers are matching demand, launching 7,300 new luxury homes in H1 2025. More than 90% of these launches came from Delhi-NCR, Mumbai, and Hyderabad, displaying a deep-seated confidence and forward bets on affluent buyers.

What’s Shaping the Market?

1. Steady Price Appreciation: Analysts forecast a 6–7% increase in high-end home prices in the second half of 2025, with luxury units outpacing the overall market in both demand and value.
2. Balanced Supply and Demand: A healthy churn has been observed, with top cities selling 1,32,000 units and launching 1,38,000 in H1 2025, indicating balanced, sustainable growth.
3. Expansion to Tier 2 & 3 Cities: As land and property prices soar in metros, luxury launches and upgrades are increasingly being spotted in non-metro cities—a trend likely to gather pace in the coming years.
4. Product Innovation and Lifestyle Focus: Today’s luxury buyers demand more: private workspaces, health and wellness amenities, green design, and curated experiences. Projects like Shapoorji Pallonji The Dualis in Gurgaon exemplify this upgraded lifestyle proposition.

Challenges Remain

Despite this robust performance, the sector is not without concerns:

• Affordability Gap: As luxury takes center stage and prices escalate, the middle-class cohort risks being priced out, widening the socio-economic housing divide.
• Regulatory Uncertainty: While the policy climate has improved, unpredictability in approval timelines or abrupt changes can pose risks for both buyers and developers.
• Supply Chain Pressures: Inflation, rising cost of materials, and occasional supply chain disruptions could challenge timelines and pricing stability.

The Year Ahead: 2025 and Beyond

All indicators point towards continued robust momentum in India’s luxury housing market through the latter half of 2025. Rapid urbanization, rising affluence, continued interest from global Indians, and developer innovation promise a vibrant pipeline of new projects and price appreciation.

In summary, 2025 is shaping up to be a record-setting year for luxury housing in India. If you wish to own your piece of luxury real estate, call us today and we’ll make your dreams come true.