Palatial Progress: India’s Top Cities Witness Luxury Housing Frenzy

India's high-end residential real estate market is on a record-breaking roll, with sales of high-end residences rising 85% year-on-year in the top seven cities in the first half of the year 2025. Almost 7,000 high-end residences priced between ₹4 crore and ₹6 crore were sold in the first half of the year, the highest-ever demand increment, showing a new trend for India's high-end housing sector.

 

Key Highlights
 

Delhi-NCR Leads the Way:
 

Delhi-NCR was the clear leader, with 57% of total luxury housing sales or around 4,000 units, three times the previous year. Mumbai came in second, with 1,240 units sold, or an 18% market share and 29% year-on-year growth.

 

Other Important Markets:
 

Pune and Chennai, being heritage mid-segment markets, contributed approximately 5% of the sales in the luxury segment, while Hyderabad and Bengaluru also witnessed high premium segment activity.

 

Track New Releases:
 

Over 7,300 luxury residential projects were rolled out in H1 2025, a 30% increase from the previous year. Delhi-NCR, Mumbai, and Hyderabad accounted for over 90% of the launches together, a reflection of their dominance in the luxury segment.

 

Who's Purchasing: HNIs, ultra-HNWIs, and NRIs are driving the boom, viewing luxury property as a safe bet in the age of global uncertainty and a stable US dollar.

 

Market Drivers:

 

The boom is attributed to increasing aspirations, wealth preservation strategies, recent Reserve Bank of India monetary policy easing, and a policy regime that is stable. Experts see a "structural shift" in purchasing preferences towards lifestyle, transparency, and quality.

 

Premiumization Trend:

 

Nearly half of all the houses that were sold during H1 2025 across key cities were priced above ₹1 crore, indicative of a sustained preference for luxury living. "Housing is no longer just a matter of shelter; it's a driver of growth that is inclusive," said Manish Singhal, Secretary General, ASSOCHAM. 

 

Source: Business Standard, Hindustan Times, Fortune India