Luxury Housing Set to Dominate 40% of New Launches in 2025-2026
The luxury housing market in India is expected to see a significant surge, with nearly 40% of new launches projected for 2025-2026. Discover the driving forces behind this trend and what it means for developers and buyers.
Luxury HousingReal EstateHighnetworth BuyersMarket TrendsPremiumisationReal Estate NewsAug 21, 2025
Residential real estate developers are expected to see stable sales growth this fiscal and the next, as demand normalises after three years of strong post-pandemic recovery. According to an analysis by Crisil, sales volumes are projected to grow by 5–7 per cent, while average prices are likely to rise by 4–6 per cent. It highlighted that the trend of premiumisation is expected to continue, with the luxury segment accounting for nearly 40 per cent of total launches in calendar years 2025 and 2026. For developers, it marks a decisive move toward high-margin, premium projects, in step with changing buyer priorities and rising purchasing power.
The surge in luxury housing demand is being powered by multiple, overlapping trends. Rising domestic wealth and a growing investor class have expanded the pool of buyers who can afford premium homes. NRIs are adding to this momentum, drawn by a favourable currency exchange, the appeal of diversifying their investments, and the pull of having a base back home.
Moreover, price movements in the luxury segment are reinforcing its premium status. According to JLL, Luxury housing sales in Delhi-NCR have risen by 9 per cent in the first half of 2025 (H1 2025) compared to the same period the previous year (H1 2024). The region now accounts for 65 per cent of all luxury housing sales across India's top seven cities. Gurugram has emerged as the clear leader, contributing 91 per cent of all luxury home sales in the NCR. Experts believe that infrastructure projects like the upcoming Gurugram Metro line will further enhance the appeal of emerging luxury hubs.
According to Dr Gautam Kanodia, Founder, KREEVA and Kanodia Group, the Luxury homebuyer segment is dynamic and continues to evolve. They’re well-travelled, often NRI or CXO families, and they benchmark homes against other countries. For them, luxury is a reflection of their lifestyle with enhanced privacy, hotel-grade services, and design that breathes—natural light, balconies, and storage that fits real life. Corridors like Golf Course Extension, the Dwarka Expressway, and other premium micro-markets are enabling that vision with connectivity and social infrastructure. Hence, luxury launches are compounding, and Gurugram continues to lead that race, Kanodia said.
Lifestyle expectations have also evolved, with more buyers seeking larger layouts, private amenities, and spaces that support wellness and leisure, even in tier 2 cities. Global influences are shaping design and service, from branded residences and hotel-style facilities to sustainable, environmentally conscious features. And perhaps most tellingly, the post-pandemic years have left a lasting preference for low-density living.
Umang Jindal, CEO, Homeland Group, said the real estate sector is witnessing this trend with some of the finest launches happening across cities. Tier 2 cities are impressively catching up with such trends, and in the Chandigarh–Mohali belt, families want space, green views, and community, without the comfort of social and physical infrastructures like schools, healthcare, highway connectivity, and airports. What surprises many is the depth of end-user demand—entrepreneurs, professionals, and returning NRIs who prefer calmer, better-planned living. When buyers feel the product integrity, the premium makes sense, and that’s powering the surge in high-end launches here, he said.
Luxury today is about coherence, where architecture, landscaping, and services flow seamlessly into one another, said Vikas Dua, Founder and Director, Chintamanis Group. The conversation has moved beyond trophy lobbies to true livability. Buyers increasingly want homes that feel calm yet remain connected, with EV-ready parking, smart security, co-working lounges, and dedicated kids’ learning spaces. This is why premium launches are accelerating; they respond to the realities of modern life with honesty. When that authenticity is delivered, demand and long-term value follow naturally, Dua said.
Looking ahead, the outlook for India’s luxury housing market remains firmly positive over the next two years. Demand is expected to stay strong. Developers, mindful of protecting pricing power, are likely to keep launches disciplined and focused, ensuring supply remains aligned with genuine demand.
Frequently Asked Questions
What is driving the surge in luxury housing demand in India?
The surge in luxury housing demand is driven by multiple factors including rising domestic wealth, a growing investor class, and the influence of NRIs. These factors, combined with the appeal of premium locations and amenities, have expanded the pool of buyers who can afford luxury homes.
What is the projected growth in sales volumes and average prices for the luxury housing segment?
According to an analysis by Crisil, sales volumes in the luxury housing segment are projected to grow by 5–7 per cent, while average prices are likely to rise by 4–6 per cent over the next two years.
Which cities are leading the luxury housing market in India?
Delhi-NCR, particularly Gurugram, is leading the luxury housing market in India. The region accounts for 65 per cent of all luxury housing sales across India's top seven cities, with Gurugram contributing 91 per cent of all luxury home sales in the NCR.
How are lifestyle expectations evolving in the luxury housing segment?
Lifestyle expectations in the luxury housing segment are evolving to include larger layouts, private amenities, and spaces that support wellness and leisure. Buyers are also seeking sustainable, environmentally conscious features and a preference for low-density living.
What is the outlook for the luxury housing market over the next two years?
The outlook for India’s luxury housing market remains positive over the next two years. Demand is expected to stay strong, and developers are likely to keep launches disciplined and focused to ensure supply remains aligned with genuine demand.
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