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Luxury Real Estate Overview H1 2025
Luxury housing in Indian has gone beyond the limited confines of the elite class. The sales and launches of properties priced over 1 crore grew by 17% and 18%, respectively. According to the Knight Frank Residential Report for H1 2025, the market share of luxury units priced over ₹ 1 Crore – ₹ 2 Crore increased to 49% from 18% in H1 2018.
The luxury properties under the ₹ 2 Crore – ₹ 5 Crore segment and the ₹ 20 Crores – ₹ 50 Crores segment have surged by 52% and 37%, respectively, in a year. This shift can be attributed to the rising income levels, increased NRI investments, tech and sustainability-driven preferences, and the need for huge spaces. The post-pandemic era has set the trend of hybrid work models, which has further led to the integration of this aspiration in the forthcoming properties.
Key Growth Drivers of Luxury Housing In India
Premiumisation Trend – Developers are now focused on selling better experiences than the costlier products. They aim to provide the best-in-class facilities and top-notch features in the residences with exclusive recreational amenities. Real estate consultant Anarock quoted that the luxury and higher luxury supply has soared deliberately in Q2 2025.
High net worth professionals, entrepreneurs, celebrities, NRIs, and industrialists look for high-end finishes, imported materials, tech-integration, larger and open layouts, customisation, prime view, exclusivity, privacy, etc. This section of homebuyers is stimulating the inventory supply in the top markets of India. With quarterly sales of mid-segment and affordable properties decreasing, the gradual growth in the sales of luxury properties is balancing the sales-to-supply ratio.
Limited Land Availability – The metropolitan cities and top micro-markets are witnessing a remarkable demand from modern homebuyers. However, the limited availability of land and premium spaces makes them competitive residential destinations. Despite the price surge and limited sources, Mumbai always leads the luxury sales in India.
South Mumbai and Central areas are space-constrained. However, redevelopment and newly launched projects are gaining momentum. These projects are thus seeking significant per square foot rates. Below are the current per square foot rates of properties in Mumbai.
| Popular Micro Market | Average Price (per square feet) |
| Worli | ₹ 64,800 per sq. ft. |
| Byculla | ₹ 48,000 per sq. ft. |
| Chembur | ₹ 32,200 per sq. ft. |
| Tardeo | ₹ 66,100 per sq. ft. |
| Wadala | ₹ 35,000 per sq. ft. |
| Lower Parel | ₹ 51,900 per sq. ft. |
| Malabar Hill | ₹ 75,100 per sq. ft. |
| Matunga | ₹ 49,500 per sq. ft. |
The trophy locations, such as Malabar Hill, Tardeo, Cuffe Parade, Marine Line, Walkeshwar, and Worli, continue to sustain the demand and sales for ultra-luxury properties. Also, the expansion of housing into emerging markets in the Mumbai Metropolitan Region, like Bhandup, Mulund, Panvel, Kharghar, Ulwe, Goregaon, Kandivali, and Mira Road, is uplifting the luxury housing graph.
Shift From Quantity To Quality – Considering the increasing number of unsold units in the market, developers are now focused on launching specified units with high-standard quality in the market. They have curated upmarket properties with exclusive features like bareshell units for customisation, advanced amenities, smart home automation, sustainable developments, etc. As stated by Anarock, it is assumed that there will be fewer than 1 Lakh units launched in the market to cope with the ongoing demand for luxury properties. This will prevent excessive supply in the market and allow balanced sales growth.
Supportive Financial Policies – RBI has kept its repo rate constant, which is a huge relief for the high ticket homebuyers. The lower interest rates lead to a relatively lesser amount of installments that could cumulate into a huge saving for luxury homebuyers.
How GST 2.0 Has Influenced The Luxury Housing In India?
GST 2.0 has slashed the interest rates on the price of certain raw materials in India. These amendments will result in 2% – 4% reduction in the overall cost of the properties across all markets. However, the extent of impact on luxury properties is based on numerous factors.
Cement accounts for the majority of the construction cost. Thus, the reduction in rate from 28% to 18% along with other materials, will impact the overall cost of construction positively. The luxury housing will benefit from the reduction in cost by 0.5% to 1.5%. So, if a luxury property in Mumbai is priced at ₹ 2.5 Crores, then the overall savings on the property cost would be between ₹ 2,00,000 – ₹ 2,50,000.
Any sort of reduction in the raw material will influence the developers’ margin. They will further reflect this on the customers’ part by reducing the property cost. Moreover, the leaner and simplified tax structure has made compliance reliable for developers. This will encourage the developers to easily fund and focus on maximum high-margin product launches in the market.
Luxury Housing Growth In Top Cities In India
Mumbai – Mumbai witnessed a price growth of 8% annually. Despite the steady supply and sales, the city demonstrated the residential market in India. Because top developers are aligned with the evolving demand of homebuyers. They are meeting the demand for mid-segment and luxury properties in the emerging markets of the city.
Properties priced above ₹ 2 Crores saw a significant increase in the share from 9% to 12%, highlighting the remarkable momentum gained by this segment. The rising satellite city of MMR, Navi Mumbai, experienced 24% and 18% rise in launches and sales. This was a result of infrastructure-led demand for premium properties.
Bangalore – Bangalore experienced a rise in demand and sales of high ticket size properties in the first half of 2025. Compared to H1 2024, this year saw a 44% growth in the supply of properties priced between ₹ 1 Crore – ₹ 2 Crore in the Silicon City. Bangalore had a substantial growth in the sales of properties priced between ₹ 1 Crore – ₹ 5 Crores. This can be attributed to the homebuyers’ preference for expansive homes with advanced amenities.
The expansion of the IT corridor and emerging startups are stimulating the overall demand across the top micro markets in Bangalore. Developers are also launching premium projects with branded features and exclusive facilities, ensuring an elevated experience for upper class homebuyers. This shift towards luxury properties led to the price appreciation of 14% annually in Bangalore.
Delhi NCR – The core areas of Delhi have witnessed a decline in sales in H1 2025. However, markets like Gurugram, Noida, and Greater Noida have led the sales growth in the market of Delhi NCR. Gurugram led the momentum, accounting for 51% of total sales due to the rising demand for premium properties. Developers are coming up with branded properties in the growth corridors of Sohna Road, Dwarka Expressway, and Southern Peripheral Road. The residential market in Gurugram is primarily focused on the upper class individuals, high net worth professionals, and NRIs.
The developers’ shift towards high ticket size properties is aligned with the rising demand for expensive homes. This is optimally reflected in Noida and Greater Noida. They contributed 30% of total residential sales in Delhi NCR. This growth is driven by the huge availability of land, infrastructural growth, and metro connectivity. The upcoming Noida International Airport has led to the launch of several luxury properties in its peripheral areas.
FAQs
- How is the demand for luxury properties in India?
According to the Knight Frank Report, the sales of properties priced over 1 crore grew by 17% inH1 2025.
- What is the current average property price in Mumbai?
The current average property price in Mumbai is around ₹ 36,000 per sq. ft., with areas like Worli ranging up to ₹ 64,800 per sq. ft.
- How will GST 2.0 influence the prices of luxury housing in India?
The GST 2.0 will reduce the overall luxury housing cost by 0.5% – 1.5%, which could result in the savings of around ₹ 2,50,000.
- What are the key growth drivers of luxury housing in India?
The key growth drivers of luxury housing in India are premiumisation trend, limited land availability, shift from quantity to quality, and supportive financial policies.
