High-End Housing Drives India's Residential Market in 2025: CBRE Report

India’s residential real estate market witnessed a significant structural shift last year, with high-end housing emerging as the largest sales segment for the first time, according to a report by commercial real estate services and investment firm CBRE.

The high-end category accounted for nearly 27 per cent of total residential sales during calendar year 2025, more than doubling its share from about 12 per cent in 2022, the India Market Monitor Q4 2025 – Residential report showed. CBRE attributed the growth to rising household incomes, steady interest from non-resident Indians (NRIs), and a growing preference for larger, better-equipped homes backed by quality infrastructure.

Premium and luxury housing segments continued to witness strong demand, with the luxury category recording a sharp 70 per cent year-on-year growth in 2025. The fourth quarter alone saw a nearly 62 per cent annualised increase in luxury housing demand.

The definition of high-end housing varies across cities. In Mumbai and Delhi-National Capital Region (NCR), it includes homes priced between Rs 1.5 crore and Rs 3 crore, while in Bengaluru and Hyderabad the range is Rs 1.5 crore to Rs 2.5 crore. In Pune, Chennai and Kolkata, high-end homes are priced between Rs 1.25 crore and Rs 2.5 crore.

Anshuman Magazine, chairman and chief executive officer (CEO) for India, South-East Asia, Middle East and Africa at CBRE, said the residential sector is undergoing a clear transformation. “The emergence of the high-end segment as the largest residential category reflects a maturing buyer base that prioritises lifestyle, longevity and asset quality. The market is moving towards a more value-led and quality-driven growth phase,” he said, adding that supply additions are increasingly aligned with delivery and demand realities.

Developers have also adapted their offerings to meet evolving buyer expectations. Gaurav Kumar, managing director, capital markets and land, CBRE India, said sustainability and technology-enabled living are now central to new residential projects. “RBI’s monetary easing and GST rationalisation continue to provide strong tailwinds, reinforcing confidence and demand in the housing sector,” he said.

During the fourth quarter of 2025, residential sales stood at around 62,500 units, while new launches totalled approximately 60,100 units. Mumbai, Pune, Delhi-NCR and Hyderabad together accounted for nearly 75 per cent of total sales during the quarter. Mumbai, Pune and Delhi-NCR also dominated new supply, contributing over 60 per cent of total launches.

For the full year, Mumbai recorded the highest residential sales at about 70,650 units, followed by Bengaluru and Pune with more than 44,000 units each. On the supply side, Bengaluru and Pune led new launches, indicating sustained developer confidence in these markets.

Despite strong fundamentals, the report cautioned that macroeconomic uncertainties could prompt some homebuyers to remain cautious in the near term. However, CBRE expects premiumisation and rising aspirations to remain key drivers shaping India’s housing market in the coming quarters.