Luxury housing sees 28% growth across India’s luxury housing segment (units priced at Rs 4 crore and above) recorded 28% Y-o-Y sales growth in Jan- Mar ‘25 across India’s top seven cities, according to the CBRE South Asia Pvt. Ltd.'s report. The segment witnessed total sales of approximately 1,930 luxury units during the quarter.
In Q1 2025, the Indian luxury real estate market (properties priced at INR 4 crore and above) witnessed notable shifts across major cities. Delhi-NCR emerged as the dominant player, accounting for approximately 49% of total unit sales, a significant jump from 13% in Q1 2024. Mumbai followed with around 23%, though this marked a decline from 30% in the previous year. Bangalore and Kolkata each saw an impressive rise in their share, moving from about 1% in Q1 2024 to 10% and 5%, respectively, in Q1 2025. Chennai also grew slightly, from 3% to 5%. In contrast, Hyderabad experienced a sharp decline in luxury sales, dropping from 45% in Q1 2024 to just 5% in Q1 2025. Pune also saw its share fall from 6% to around 3%. Total luxury unit sales rose from 1,510 in Q1 2024 to 1,930 in Q1 2025, indicating a growing demand for high-end real estate in India, especially in the northern region.
Among the top seven cities, Delhi-NCR led in quarterly luxury unit sales, recording a sale of around 950 luxury units, followed by Mumbai, which had a share of 23% in overall sales. Bengaluru recorded the highest growth among southern cities, growing from just 20 units in Q1 2024 to about 190 units in Jan-Mar ’25. Kolkata and Chennai had a 5% share in overall luxury unit sales.
India’s residential market witnessed an equilibrium between new launches and sales in Jan-Mar ‘25. Approximately 65,300 units were launched, and sales were recorded at 65,800 units. City-wise, Mumbai, Pune, and Delhi NCR collectively accounted for over 62% of total residential sales in Jan-Mar ‘25. The report highlighted that Mumbai recorded the highest unit sales during the quarter, with approximately 18,600 units sold, followed by Pune with 12,500 units. Delhi-NCR witnessed sales of 10,000 units, while Bengaluru followed closely with sales of 9,300 units.
The high-end segment led sales activity in Jan-Mar ‘25, capturing a 27% share, closely followed by the mid-end segment at 25%.
In terms of quarterly launches, Mumbai led the way with 15,600 units (24%), followed by Pune with 15,000(23%) units and Bengaluru with 11,400 units (17%). The high-end segment dominated around 30% of the launches, followed by the mid-segment at 29%.
India's residential real estate market is poised for stable growth in 2025, underpinned by a strong and sustained demand for homeownership, rising disposable incomes, and ongoing infrastructure development across key regions. The Reserve Bank of India's move to initiate a monetary easing cycle is expected to support market momentum further, as lower interest rates could make home loans more attractive. Additionally, the narrowing gap between EMIs and rental payments may prompt more fence-sitters to transition from renting to owning.
The year is also likely to witness a continued surge in new project launches, a trend fueled by the significant land acquisitions made during 2023-24. This pipeline of fresh inventory, combined with favourable market conditions, positions the sector for a steady and optimistic performance throughout 2025.
