Luxury Homes Drive India’s Real Estate Market: Premium Segment Commands 62% Share

Discover how luxury homes are dominating Indiaโ€™s real estate market, accounting for 62% of sales in H1 2025, fueled by rising buyer affluence and evolving lifestyle aspirations.

New Delhi, India โ€“ Indiaโ€™s real estate sector is witnessing a significant shift towards premium housing, with homes priced at โ‚น1 crore and above capturing an impressive 62% share of sales in the first half of 2025. This marks a notable increase from 51% in the same period last year, highlighting a growing appetite for luxury living among Indian homebuyers.

The surge in demand for premium properties indicates a broader trend of rising buyer affluence and a desire for larger, more sophisticated living spaces. While overall new launches have seen a moderation, developers are strategically focusing on high-end and premium projects to align with these evolving market dynamics.

Key Highlights:

  • Dominance of Premium Segment: Homes exceeding โ‚น1 crore accounted for 62% of residential sales in H1 2025.
  • Strong Growth in โ‚น3-5 Crore Bracket: Demand for properties in the โ‚น3-5 crore range saw a 14% increase.
  • Mass Segment Share Declines: The share of homes priced below โ‚น1 crore dropped to 38% from 41% year-on-year.
  • Top Performing Cities: Bengaluru, Mumbai, and Pune collectively commanded a 63% share of residential sales across Indiaโ€™s top seven cities.
  • Delhi NCR Leads Price Growth: Property prices in Delhi NCR experienced the highest year-on-year jump at 17%, followed by Bengaluru at 14%.
  • Developer Focus: Despite overall slower launches, developers are prioritizing high-end projects to match current demand.

This robust performance in the premium housing segment is attributed to several factors, including improving economic conditions, stable inflation, and potential benefits from recent RBI rate cuts making home loans more accessible. The market is clearly reflecting a desire for quality and aspirational living spaces.

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