India's luxury housing market showed impressive resilience in Q1 2025, with a 28% Year-on-Year (YoY) increase in the sales of high-end homes priced above Rs. 4 crore (US$ 464,594.80). A total of 1,930 units were sold during this period, compared to 1,510 units in the same quarter of the previous year, underscoring the continued upward trajectory of this segment in the country's real estate market.

The Delhi-National Capital Region (NCR) emerged as the top performer, contributing a dominant 49% market share in luxury home sales. Mumbai followed with a 23% share, while Bengaluru recorded the highest growth in sales. In Q1 2024, Bengaluru's luxury housing sales were limited to just 20 units, but this figure skyrocketed to nearly 190 units in Q1 2025, marking a significant leap in demand. While Kolkata and Chennai together accounted for 5% of overall sales, Hyderabad saw a sharp decline in its contribution, dropping from 45% in Q1 2024 to just 5% this quarter.

This positive growth trend in luxury housing reflects a combination of factors: strong demand from end-users, a boost in buyer sentiment, and the recent repo rate cut by the Reserve Bank of India (RBI). The reduction in the cost of borrowing has played a pivotal role in enhancing affordability and boosting the confidence of high-net-worth individuals (HNIs) and Non-Resident Indians (NRIs), who have traditionally been significant contributors to luxury housing demand.

Data from Coldwell Banker Richard Ellis (CBRE) indicates that India's residential market is becoming more balanced and mature. In Q1 2025, the overall market saw 65,800 units sold, with a near-equivalent number of new units launched—65,300. Mumbai dominated overall sales with 18,600 units, followed by Pune (12,500), Delhi-NCR (10,000), and Bengaluru (9,300). High-end homes, priced above Rs. 4 crore, accounted for 27% of total sales, while the mid-range segment made up 25%.

From a supply perspective, 30% of the new residential launches were in the luxury category, further indicating the growth potential in this segment. Developers are expected to continue launching premium projects in 2025, fueled by land acquisitions made in 2023 and 2024, which will further strengthen the luxury housing pipeline.

The demand for premium villa plots, particularly those priced above Rs. 5 crore (US$ 580,743.50), remains strong. Notably, affluent individuals, CXOs, and NRIs continue to fuel demand for these high-value properties. According to Mr. Abhinandan Lodha, Chairman of House of Abhinandan Lodha, this demand remains robust despite fluctuations in broader economic conditions.

Experts are optimistic that the easing of interest rates and the narrowing gap between Equated Monthly Installments (EMIs) and rental prices will further accelerate demand for luxury homes. As EMIs become more affordable, the housing sector is expected to see growing traction across urban and semi-urban markets, benefiting both developers and buyers alike.

In conclusion, the luxury housing market in India is on a strong growth path in 2025, driven by favorable economic conditions, a shift in buyer sentiment, and the continued desire for premium real estate among affluent individuals. With significant market share in key cities like Delhi-NCR, Mumbai, and Bengaluru, and a rising interest in high-end homes, the luxury housing segment is poised for continued success through the remainder of the year and beyond.

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