Luxury housing sales jump 28% in top 7 cities in Q1 2025 on higher disposable incomes

India’s luxury housing segment is off to a strong start in 2025, recording a nearly 28% year-on-year growth in sales across the top seven cities in the January to March quarter, according to a new report by CBRE South Asia. A total of 1,930 luxury units—defined as homes priced at Rs 4 crore and above—were sold in Q1 2025, up from 1,510 units during the same period last year.

Leading the charge was Delhi-NCR, which accounted for about 49% of luxury sales, or around 950 units sold in the quarter. Mumbai followed with a 23% share, while Bengaluru saw the most dramatic growth among southern markets—scaling from just 20 units sold in Q1 2024 to approximately 190 units this year. Other cities like Kolkata, Hyderabad, and Chennai contributed around 5% each to the overall luxury sales pie.

The report, ‘India Market Monitor Q1 2025–Residential’, suggests that luxury and high-end segments continue to gain traction amid a rise in disposable incomes, changing lifestyle preferences, and a growing appetite for future-ready homes.

“The Indian residential market’s performance in Q1 2025 reflects both maturity and momentum,” said Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. “The alignment between supply and demand, especially in the mid-to-premium segments, signals a deep understanding of buyer aspirations. Luxury and high-end segments continue to gain traction, driven by rising disposable incomes, lifestyle upgrades, and a desire for future-ready living spaces.”

Outside the luxury bracket, the broader residential market showed signs of balance, with new launches and sales remaining almost at par. While approximately 65,300 units were launched across the top seven cities in Q1 2025, sales stood slightly higher at 65,800 units, as per the report.

Mumbai, Pune, and Delhi NCR collectively accounted for over 62% of total residential sales in the quarter. Mumbai led in total housing sales with around 18,600 units sold, followed by Pune with 12,500 units, and Delhi-NCR with 10,000 units. Bengaluru continued to maintain its momentum with 9,300 units sold during the quarter.

CBRE report also notes that the high-end segment led overall residential sales activity in the quarter, accounting for 27% of total sales – edging out the mid-end segment, which made up 25%.

In terms of quarterly launches, Mumbai and Pune were nearly neck and neck, with 15,600 and 15,000 units launched respectively, while Bengaluru saw 11,400 units enter the market. Interestingly, the high-end segment dominated new supply with a 30% share, followed closely by the mid-end segment at 29%.

Looking ahead, CBRE expects residential demand to remain strong, supported by infrastructure development, increasing income levels, and improved access to financing. The recent cut in repo rate is also likely to improve buying sentiment further.

Additionally, the monetary easing cycle initiated by the RBI and a narrowing gap between EMIs and rentals could prompt more homebuyers to act decisively, says the report. Developers are also expected to remain active in the market, with elevated levels of new launches anticipated throughout the year, particularly in light of the large land acquisitions seen during 2023-24.