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Luxury Housing Tops India's Real Estate Market for First Time Ever

India's residential real estate market witnessed a historic shift in 2025, with the high-end housing segment becoming the largest for the first time, capturing nearly 27% of all transactions. This segment's share has more than doubled since 2022, fueled by rising household incomes, lifestyle aspirations, and sustained Non-Resident Indian interest. The fourth quarter alone saw approximately 62,500 luxury units sold, with Mumbai, Pune, and Delhi-NCR contributing over 60% of new project launches. Industry experts attribute this premiumisation trend to a maturing buyer base focused on quality and long-term value, supported by favorable economic policies.

Key Points: High-End Housing Becomes India's Largest Residential Segment

  • High-end segment share doubled since 2022
  • Luxury sales grew 70% year-on-year in 2025
  • Mumbai, Pune, Delhi-NCR dominate new supply
  • Market driven by lifestyle upgrades & NRI interest
2 min read

High‑end housing becomes India's largest residential segment for 1st time

India's residential market sees a structural shift as luxury housing accounts for 27% of transactions in 2025, driven by rising incomes and NRI demand.

"The emergence of the high‑end segment reflects a maturing buyer base that is prioritising lifestyle, longevity, and asset quality. - Anshuman Magazine, CBRE"

Mumbai, Jan 19

India's residential market saw a structural shift in CY2025 as the high‑end housing segment category became the market's leading segment for the first-time ever, accounting for about 26.8 per cent of transactions, with around 27 per cent share, a report said on Monday.

The report from CBRE South Asia Pvt said the segment's share has more than doubled since 2022 from 11.8 per cent to 26.8 per cent, driven by rising household incomes, lifestyle upgrades and sustained NRI interest.

Luxury segment recorded 70 per cent year‑on‑year growth in 2025 with the fourth quarter alone witnessing roughly 62 per cent annualised increase, the report said.

The Q4 2025 saw roughly 62,500 units sold and about 60,100 units launched, with Mumbai, Pune and Delhi‑NCR supplying more than 60 per cent of new launches.

Mumbai, Pune, and Delhi-NCR also dominated the supply side, contributing more than 60% of all new launches during the quarter.

"The emergence of the high‑end segment reflects a maturing buyer base that is prioritising lifestyle, longevity, and asset quality. The sector will likely be anchored by calibrated supply infusion, ensuring that new inventory is aligned with delivery realities," said Anshuman Magazine, Chairman & CEO, India, South‑East Asia, Middle East & Africa at CBRE.

"Although underlying fundamentals remain strong, macroeconomic headwinds may prompt a segment of homebuyers to maintain a watchful stance in the near term. Still, sustained premiumisation and rising aspiration would remain key drivers shaping India's housing landscape in the coming quarters," he added.

The overall trend highlighted a maturing housing market, increasingly driven by quality, aspiration, sustainability, and long-term value creation.

Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said that the developers have closely aligned their offerings with demand dynamics.

RBI's monetary easing and GST rationalization continue to provide strong tailwinds, reinforcing confidence and demand in the housing sector, Kumar added.

- IANS

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Reader Comments

P
Priya S
While this is good for the economy, I can't help but worry about the middle class. If all the focus is on luxury housing, what happens to affordable homes? Prices in the suburbs are already skyrocketing. The gap seems to be widening.
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Rohit P
Mumbai, Pune, Delhi-NCR... no surprise there! The infrastructure in these cities is finally catching up, making luxury projects viable. Good to see RBI's policies helping. Maybe next cycle will see more Tier-2 cities joining the list.
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Sarah B
Interesting data point. The shift from 11.8% to 26.8% in just a few years is dramatic. It reflects a fundamental change in buyer psychology. People are willing to spend more for quality, amenities, and a better living experience. Well-articulated by Mr. Magazine.
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Vikram M
As someone who just bought a flat in a "high-end" project in Pune, I can confirm the trend. It's not just NRIs. Dual-income professionals like us are driving this. We want modern facilities, security, and good management. Worth every penny.
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Karthik V
A respectful criticism: The report talks about "sustainability" as a driver, but how many of these luxury projects are truly green? Or is it just a marketing buzzword? Developers need to be held accountable for their claims on long-term value and eco-friendliness.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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