Luxury Housing Sales Record 85% YoY Growth in Jan-Jun 2025

By Lodha

India's luxury housing market has witnessed remarkable growth, with a 85% YoY increase in sales during the first half of 2025. This surge, as highlighted by a joint report from CBRE South Asia and ASSOCHAM, marks a significant shift in consumer demand and the country’s real estate landscape. Driven by a combination of strong economic fundamentals, evolving consumer aspirations, and an increasingly supportive policy environment, the luxury housing segment is emerging as one of the most sought-after investment options in India. This blog delves into the reasons behind this growth and why real estate investment in luxury homes in India is becoming an attractive proposition.

Factors Driving the Surge in Luxury Housing Sales

The period from January to June 2025 saw the luxury housing market in India growing by a staggering 85% YoY, with nearly 7,000 units sold across the top seven cities—Delhi-NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad, and Chennai. The luxury housing segment's growth was notably driven by the increasing preference of High Net Worth Individuals (HNWIs), Ultra High Net Worth Individuals (UHNWIs), and Non-Resident Indians (NRIs) seeking to safeguard their assets amidst global uncertainties. The strength of the US Dollar also made India’s luxury real estate an attractive proposition for investors.

Leading Cities in Luxury Property Sales

Delhi-NCR led the charge, with 4,000 luxury units sold, contributing to 57% of the overall sales during the Jan-Jun ’25 period. This marked a threefold increase compared to the same period last year. Mumbai, with its iconic luxury villas in India, accounted for 18% of the overall sales, registering a 29% YoY growth. Cities like Pune and Chennai, which were once predominantly mid-end markets, recorded a modest yet notable increase in their share of luxury sales, totalling 5% of the overall sales.

This robust growth across these regions indicates a significant shift in the preferences of the Indian homebuyer. With rising disposable incomes, more individuals are moving towards luxury houses in India as they seek not just homes, but high-quality living spaces that offer exclusivity, privacy, and world-class amenities.

Why Luxury Homes in India Are Gaining Popularity

Several factors are contributing to the growing demand for luxury real estate in India:

1. Strong Economic Fundamentals: The rise in disposable income and a steady growth trajectory in the economy have given consumers the financial confidence to invest in luxury property.
2. Shift in Consumer Preferences: There has been a clear shift towards luxury homes in India driven by rising aspirations, an affinity for homeownership, and a desire for better living standards. The Indian consumer is now seeking homes that offer more than just basic amenities—they are looking for a holistic lifestyle experience with exclusive facilities such as spas, gyms, and high-end security.
3. Rising Affluence of HNWIs and NRIs: With a large segment of buyers from the NRI and HNWI communities looking to invest in India’s luxury housing market, there is an influx of foreign capital into the real estate sector. This has been further facilitated by the strengthening of the US Dollar and the potential for real estate investment as a safeguard against global uncertainties.
4. Government Policies and Incentives: The evolving policy environment has played a significant role in driving demand. Initiatives like the PMAY (Pradhan Mantri Awas Yojana), interest subvention schemes, and GST reforms are making the real estate market more accessible to buyers.

The Role of Real Estate Investment Companies in This Growth

Real estate investment companies are capitalising on the burgeoning demand for luxury property. Developers are increasingly focusing on creating luxury villas in India and high-end residential projects that cater to the needs of a more affluent buyer. Furthermore, real estate companies in India are offering a variety of financing options and long-term investment opportunities, making it easier for buyers to invest in premium properties.

India’s luxury housing market is no longer a niche segment; it has become a mainstream option for investors, especially in the Rs 1-2 crore price range, which is now considered the sweet spot for mid-to-high-end buyers. As the market matures, more developers are focusing on quality, transparency, and experience—key factors that are driving the next wave of growth in luxury real estate.

The Future of Luxury Real Estate in India

Looking ahead, the demand for luxury real estate in India is expected to remain strong, with residential sales across the top cities maintaining a healthy trajectory. The continued interest from HNWIs and NRIs, combined with favourable macroeconomic conditions, indicates a sustained boom in this segment. Additionally, increasing urbanisation, a rising middle class, and strengthening household incomes are expected to fuel demand further.

Moreover, the push towards sustainability in the luxury housing market is gaining momentum. Buyers are increasingly interested in luxury homes that are energy-efficient, have sustainable construction practices, and offer eco-friendly features such as solar panels, water recycling systems, and green spaces.

Conclusion

The 85% YoY growth in luxury housing sales during Jan-Jun 2025 is a testament to the growing affluence of Indian consumers and the country’s strong economic fundamentals. As luxury real estate continues to evolve, real estate investment companies are well-positioned to cater to this rising demand. Investors looking to tap into the high-potential market of luxury homes in India can expect substantial returns, especially as the market matures and attracts even more interest from HNWIs, UHNWIs, and NRIs.

For those seeking luxury property in India, Lodha Group is one of the top real estate companies in India, offering a variety of luxury villas in India and sustainable housing options that cater to the tastes and preferences of the most discerning buyers. Whether you’re looking for an exclusive home or a lucrative investment opportunity, Lodha provides world-class living spaces that meet the highest standards of quality and luxury.