India’s luxury housing market continued its upward trend in Q1 2025, with a 28% year-on-year increase in sales of high-end homes priced above $464,595. In the quarter, around 1,930 units were sold across the top seven cities, up from 1,510 units in Q1 2024. Delhi-NCR led the market with a 49% share, followed by Mumbai with 23%. Bengaluru experienced the sharpest growth, with sales increasing from just 20 units in Q1 2024 to nearly 190 in Q1 2025. Although Kolkata and Chennai accounted for only 5% of total sales, Hyderabad saw a significant drop in market share, falling from 45% last year to just 5% this quarter. The growth in luxury housing is attributed to strong end-user demand, improved buyer sentiment, and the recent repo rate cut by the Reserve Bank of India.
The overall residential market showed maturity and balance, with about 65,800 units sold and 65,300 new units launched in Q1 2025. Mumbai led in overall sales with 18,600 units, followed by Pune with 12,500, Delhi-NCR with 10,000, and Bengaluru with 9,300. Luxury homes accounted for 27% of the total sales, while the mid-end segment represented 25%. Developers are expected to keep a strong launch pipeline throughout the year, supported by substantial land acquisitions in 2023 and 2024.
The demand for premium villas and plots priced above $580,744 remains robust, especially among Chief Experience Officers (CXOs), Non-Resident Indians (NRIs), and affluent buyers. Experts anticipate that the easing of interest rates and a narrowing gap between Equated Monthly Installments (EMIs) and rental prices will continue to drive housing demand in both urban and semi-urban markets across India.
