India’s Luxury Housing Sales Surge 28% In Q1 2025; Led By Delhi-NCR And Mumbai

India’s luxury housing market witnessed strong growth in the first quarter of 2025, with sales of high-end homes (priced at ₹4 crore and above) rising by 28% year-on-year across the country’s top seven cities, according to CBRE South Asia’s latest India Market Monitor Q1 2025 – Residential report.

Leading the charge, Delhi-NCR accounted for nearly half of the luxury housing sales, recording approximately 950 units sold between January and March.

Mumbai followed with a 23% share in total sales, underscoring the continued demand for premium real estate in India’s financial capital.

Meanwhile, Bengaluru emerged as the fastest-growing southern city in the segment, witnessing a dramatic jump from just 20 units sold in Q1 2024 to about 190 units in Q1 2025.

Kolkata and Chennai each contributed around 5% to the overall luxury housing sales.

Demand Fueled By Rising Incomes And Lifestyle Aspirations

CBRE attributed the robust performance to increasing disposable incomes, lifestyle aspirations, and a growing preference for future-ready living spaces.

“Luxury and high-end segments continue to gain traction, driven by rising disposable incomes, lifestyle upgrades, and a desire for future-ready living spaces,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE.

He added that improved infrastructure and better access to financing would likely sustain this upward trend.

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The recent repo rate cut by the Reserve Bank of India is also expected to boost buyer sentiment further.

Despite the upbeat performance in the luxury segment, overall housing sales in India’s top nine cities saw a 23% drop to 1,05,791 units in Q1 2025, as per data from PropEquity.

New supply also declined by 34% to 80,774 units during the same period.

Only Bengaluru and Delhi-NCR managed to buck the trend, while the remaining cities experienced a downturn in sales.

Future Trends: High-End Demand And Project Launches

Looking ahead, CBRE expects India’s residential real estate market to remain on a steady growth path throughout 2025.

Factors such as rising homeownership aspirations, infrastructure investments, and favorable financing conditions are likely to keep demand healthy.

The consultant also predicts a steady stream of new project launches, fueled by the extensive land acquisitions made during 2023–24.

Additionally, with the Reserve Bank initiating a monetary easing cycle and narrowing the gap between EMIs and rentals, more homebuyers may be encouraged to finalize their purchases.

While challenges remain in the broader market, India’s luxury housing sector continues to stand out as a bright spot, reflecting the evolving preferences and financial confidence of urban homebuyers.