Luxury Housing Sales Record 85% YoY growth in Jan-Jun, Delhi-NCR Registers Highest Sales: Report

New Delhi, July 11, 2025: CBRE South Asia Pvt. Ltd., the country’s leading real estate consulting firm, and ASSOCHAM launched a joint report titled ‘The New Paradigm in Indian Housing’ at CBRE ASSOCHAM Real Estate Conference 2025-Ease of Doing Business: Unlocking Sustainable Growth on Friday.

The report highlights the robust growth of the residential sector driven by a confluence of strong economic fundamentals, improved policy environment and evolving consumer aspirations.

Per the report, the luxury housing segment recorded an 85 per cent YoY growth in sales in January-June with approximately 7,000 units across the top seven cities, including Delhi-NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad and Chennai.

During the period, Delhi-NCR led in sales with 4,000 luxury units, accounting for a share of 57 per cent share, recording a threefold growth compared to the corresponding period in the previous year.

Mumbai followed with sales of 1,240 luxury units (constituting 18 per cent of the overall luxury sales during H1 2025), registering 29 per cent YoY growth during the review period. Furthermore, traditionally mid-end dominated markets such as Chennai and Pune cumulatively recorded five per cent of the overall luxury sales during H1 2025.

The period also witnessed 7,300 luxury unit launches, recording a 30 per cent YoY increase. Delhi-NCR, Mumbai and Hyderabad registered the highest number of launches, cumulatively accounting for over 90 per cent of the total luxury unit launches in H1 2025.

The luxury housing market is increasingly attracting HNWIs, UHNWIs and NRIs driven by the need to safeguard assets amidst global uncertainties and benefit from a strengthening dollar.

The report also points out that overall housing sales across the top seven cities remained robust with 132,000 units sold and 138,000 new units launched, indicating a well-balanced market.

“India’s residential market has entered a phase of strategic resilience. While macroeconomic fundamentals remain strong, the standout growth of luxury and premium housing indicates rising consumer confidence and lifestyle aspirations,” said Gaurav Kumar, MD, Capital Markets and Land, CBRE India.

“Developer focus has realigned toward quality, transparency and experience, all of which are key to unlocking the sector’s next wave of growth. The remarkable rise in luxury housing, both in demand and supply, reflects a structural shift in homebuyer preferences and reaffirms India’s position as a high-potential market for global and domestic investors alike.”

Manish Singhal, Secretary General, ASSOCHAM, said, “This report is a vital road map for stakeholders in India’s housing landscape. The housing boom, coupled with policy evolution, highlights the need for reforms that ease approvals, redefine affordable housing in urban India and incentivise sustainable development.”

He added, “Housing is no longer just shelter; it’s an engine for inclusive growth. The report also captures the sector’s evolving dynamics from rising home loan disbursement to the surge in mid-to-high-end housing and formalisation of rental housing. These insights provide a comprehensive view of the opportunities and priorities that lie ahead for the Indian real estate ecosystem.”

Unlocking Sustainable Growth in Housing

• Streamlining liaising and approvals
  • Implement a single-window clearance system for environmental, fire and urban planning approval.
  • Enforce time-bound clearance to reduce project delay.
  • Promote full digitisation of application processes, including e-filing and tracking.
• Redefining affordable housing across Tier 1 cities
  • Revise the price cap from INR 45 lakh to INR 75 lakh in metros.
  • Adjust unit size criteria to up to 90 sq m and introduce tiered eligibility by city/state.
  • Earmark land banks for affordable housing, offer incentives/tax breaks to developers and simplify norms for affordable housing projects.
• Improving construction and project execution
  • Introduce pre-approved building plans and standard design templates.
  • Incentivise green and sustainable construction through tax breaks and FSI bonuses.
  • Focus on skilling construction labour and consider GST rationalisation on key materials.

• Further bolster demand and buyer confidence
  • Expand PMAY benefits and interest subvention schemes for first-time buyers
  • Ensure uniform implementation of RERA and stricter penalties for non-compliance
  • Simplify GST processes and clarify input tax credit rules.
  • Maintain a stable policy environment, avoiding abrupt changes in FSI, stamp duty or taxation.
• Way Forward
• A growing ‘appetite’ for luxury housing
  • Demand fuelled by HNIs, NRIs and upper-middle class.
  • Focus on premium quality, exclusive amenities and long-term value.
  • Now, a mainstream and fast-expanding market segment.
• Residential sales are likely to chart a steady course driven by
  • Strong affinity for homeownership
  • Rapid urbanisation, favourable demographic dividend and strengthening urban migration trends
  • Rising household disposable incomes
  • A healthy mix of end-user and investor activity; land acquisition for residential projects high on investors’ radar
  • RBI’s monetary easing in H1 2025 potentially spurring fence-sitting buyers
  • Convergence of developer and buyer interest on the INR 1-2 crore “sweet spot”, cementing the prominence of mid-to-high-end housing segments
  • Accelerated mainstreaming of sustainability measures, even in non-luxury segments
  • Tier 1 developers expected to largely retain their dominance across residential categories in most major cities