India’s luxury housing market experienced a significant upswing in the first half of 2025 (H1 2025), with sales of high-end homes rising by 85% year-on-year (YoY), according to a joint report by CBRE South Asia and ASSOCHAM. A total of 7,000 homes priced between Rs. 4 crore to Rs. 6 crore (approximately US$ 466,091 to US$ 699,137) were sold across India’s top seven cities during the period, reflecting growing confidence among high-net-worth individuals (HNIs) and a shift in buyer preferences toward luxury living.

Delhi-NCR Leads the Luxury Surge

The Delhi-National Capital Region (NCR) emerged as the top-performing region, accounting for 57% of total luxury home sales in H1 2025. An impressive 4,000 units were sold, marking a threefold increase from the same period in 2024. This exponential growth underscores the region’s increasing dominance in India’s luxury residential space. Strong infrastructure, enhanced connectivity, and policy support have made Delhi-NCR a magnet for luxury real estate investments.

Mumbai, another key metropolitan hub, followed with 1,240 units sold, making up 18% of the market share. This represents a 29% year-on-year growth. Experts note that Mumbai continues to attract a steady stream of HNIs and corporate professionals who seek a blend of lifestyle, investment security, and prestige in real estate purchases.

Major New Launches Support Market Expansion

In tandem with the surge in sales, the luxury housing segment witnessed 7,300 new launches during H1 2025, up 30% compared to the previous year. The new supply was heavily concentrated in Delhi-NCR, Mumbai, and Hyderabad, which together contributed over 90% of the new high-end inventory. Developers have taken cues from demand trends and are offering expansive homes with premium amenities, advanced security features, green certifications, and bespoke interiors to attract luxury buyers.

What’s Driving the Boom?

The report identifies several key factors behind this robust growth in luxury housing:

• Rising lifestyle aspirations among urban elites and younger affluent demographics.

• A strong preference for wealth preservation, particularly amidst global economic volatility.

• Increased participation from ultra-HNIs and NRIs, many of whom are repatriating funds or seeking real estate hedges due to a strong US dollar and attractive investment returns in India.

• Strategic investments by seasoned investors and family offices diversifying into stable real estate assets.

• The Reserve Bank of India’s recent monetary easing, which has led to lower home loan rates, thus improving affordability even in the premium segment.

• A stable regulatory environment, which enhances investor confidence and reduces project delays.

According to Mr. Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, the surge reflects a deepening of consumer trust and evolving lifestyle expectations. He highlighted that luxury homebuyers are now viewing real estate not just as an investment, but also as a lifestyle statement and long-term asset class.

Policy Environment and Regulatory Boost

The luxury real estate boom is also supported by a favourable policy climate. RBI’s monetary policies, which have maintained liquidity and interest rate stability, have encouraged both domestic and overseas buyers. The clearances and approval processes, however, remain a challenge in some areas, and industry bodies like ASSOCHAM have been urging policymakers to introduce reforms that streamline urban development approvals, reduce bureaucratic bottlenecks, and encourage sustainable construction practices.

Mr. Manish Singhal, Secretary General of ASSOCHAM, noted that luxury housing plays a critical role in inclusive economic growth. While high-end buyers dominate this segment, the ripple effect is widespread — creating jobs in construction, design, security, landscaping, and facility management. The development of luxury housing often acts as a catalyst for broader urban improvement and investment.

Demographics and Disposable Incomes Fueling Growth

India’s demographic advantage and rising urban disposable incomes are another major tailwind for luxury housing demand. The rapid pace of urbanisation, coupled with increasing financial literacy and investment awareness, is changing the way Indians perceive real estate.

Today’s luxury buyer seeks more than just space — they demand quality, aesthetics, privacy, wellness-focused amenities, and proximity to urban conveniences. Developers are now tailoring projects with customisable interiors, concierge services, smart home technologies, and environmentally conscious design to meet the expectations of a discerning clientele.

Outlook for H2 2025 and Beyond

Looking ahead, the outlook for the luxury housing segment in India remains exceptionally strong. Industry analysts predict continued growth in H2 2025, buoyed by:

• A steady pipeline of new launches in top-tier cities.

• Positive market sentiment due to global economic stability signals.

• Higher real estate allocations by investment funds, NRIs, and international property buyers.

• Continued support from the government and regulatory bodies to incentivize premium housing development.

Many developers are also exploring tier-1.5 and emerging metro locations like Pune, Bengaluru outskirts, and parts of Ahmedabad, as future hotspots for luxury home development, where land availability, connectivity, and infrastructure upgrades make such investments viable.

Summary

The 85% year-on-year surge in luxury home sales across India’s top seven cities during H1 2025 marks a new chapter in the country’s real estate journey. Spearheaded by regions like Delhi-NCR and Mumbai, the trend reflects deeper structural shifts in affluence, aspiration, and asset security. With global dynamics favouring wealth migration and domestic conditions becoming increasingly conducive, India’s luxury real estate segment is poised to become a cornerstone of urban growth and economic transformation in the coming years.

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