Luxury Housing Sales Soar 28% in January-March Quarter

India's luxury housing segment (units priced at Rs 4 crore and above) saw a 28% year-on-year sales growth in the January-March 2025 period across the country's top seven cities, according to the 'India Market Monitor Q1 2025 - Residential' report by real estate consultant CBRE South Asia. During this quarter, approximately 1,930 luxury units were sold.

Among the top seven cities, Delhi-NCR led in quarterly luxury unit sales, accounting for nearly half of the total with approximately 950 units sold. Mumbai followed, contributing 23% to the overall sales.

Bengaluru recorded the highest growth among southern cities, increasing sales from just 20 units in Q1 2024 to around 190 units in January-March 2025. Notably, Kolkata and Chennai each accounted for 5% of the overall luxury unit sales.

“Luxury and high-end segments are gaining momentum, fueled by increasing disposable incomes, lifestyle upgrades, and a growing demand for future-ready living spaces. We expect residential demand to maintain a steady trajectory as infrastructure development and improved access to financing continue to support housing demand in key cities. The recent repo rate cut will further enhance buying sentiment,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

The consultant anticipates that India's residential real estate market will maintain steady growth in 2025, driven by a growing demand for homeownership, rising income levels, and ongoing infrastructure developments.

Additionally, the RBI's initiation of the monetary easing cycle, along with the narrowing gap between EMIs and rental costs, may motivate homebuyers to finalize their purchase decisions.

CBRE added that new project launches are expected to stay high throughout the year, supported by the significant land acquisitions made during 2023-24.

CBRE's optimism persists despite a sharp decline in housing sales in the recently concluded quarter. According to PropEquity data, housing sales dropped by 23%, totaling 1,05,791 units across India's top 9 cities, while supply fell by 34% to 80,774 units in January-March 2025. Except for Bengaluru and Delhi-NCR, all seven other cities saw a decrease in sales.