Due to strong sales in seven major cities of India, the number of houses sold until the January-March 2025 quarter declined by 4% on an annual basis, leading to about 5.6 lakh units. According to the real estate advisor ENROK, the number of houses sold in these cities declined to 5,59,808 units by March 2025, which was 5,80,895 units in March 2024.
Key cities
It has seven cities: Delhi-National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
Inventory trend based on price
Less than Rs 40 lakh: Units sold without affordable houses declined by 19%, which was 1,39,905 units in March 2024, it remained 1,12,744 units in March 2025.
40-80 lakh rupees: In this medium section, the non-sold houses decreased from 1,74,572 units to 1,57,741 units.
80 lakh -1.5 crore rupees: This section saw a slight increase in this section, in which the houses without sold from 1,75,293 units increased to 1,76,130 units.
More than Rs 1.5 crore: Luxury houses' without selling inventory increased by 24%, which increased from 91,125 units to 1,13,193 units, due to the increased supply in recent years.
Market insight
Anarock Chairman Anuj Puri said that the luxury residential segment has been the best performing in the last two to three years, mainly due to an increase in new supply in recent years. In contrast, the affordable housing section has suffered the most since the global epidemic, as both sales and new offers have declined. In the last five years, the stake of affordable houses in total sales and new offers has been continuously decreasing.
Sales and supply
Sales: Q1 In 2025, the sales of houses in the top seven cities declined by 28% to 93,280 units, while in Q1 2024 it was more than 1.30 lakh units.
New offer: The new residential supply in Q1 2025 was 1,00,020 units, which is 10% less than 1,10,865 units of Q1 2024.
Future prospects
Experts believe that the demand in luxury and premium residential segment will remain strong, as high -income buyers are looking for luxury facilities and better lifestyle. On the other hand, the affordable housing section requires government incentives and strategic initiatives of developers for regeneration. This change in the market reflects urbanization and changing consumer preferences, which requires developers to adapt their projects to the demand.
Real estate market moving towards luxury housing
The real estate market in major cities of India is moving towards luxury housing, while affordable segment is still struggling to recover. Although there is a decrease in total uninterrupted inventory, market dynamics reflect different demands in different price segments.
FAQs
1. What is riding the surge in luxury housing call for in India?
The call for is fueled by means of a growing variety of excessive-internet-worth individuals (HNIs), put up-pandemic lifestyle shifts, and a preference for spacious, amenity-rich houses. Affluent consumers are more and more investing in top class real property as a strong asset class.
2. Why has unsold stock inside the luxurious phase elevated by 24%?
The 24% upward thrust in unsold luxurious homes, from about 91,125 units to over 1.Thirteen lakh devices, is attributed to a tremendous inflow of new supply inside the marketplace. Developers have released severa excessive-give up initiatives, watching for persisted call for, main to a transient oversupply.
3. How does the posh housing trend examine to low cost housing?
While luxury housing is experiencing growth, inexpensive housing has visible a decline. Unsold inventory inside the low-priced segment (homes priced below forty lakh) dropped by using 19%, indicating a slowdown in new launches and sales in this category.
4. Which towns are leading in luxurious housing call for?
Delhi-NCR, Mumbai, and Bengaluru are at the leading edge of luxurious housing call for. Delhi-NCR, especially, has seen luxurious section sales leap, with luxury homes accounting for 45% of overall residential sales in the first half of 2024, up from simply 3% in 2019.
5. What is the projected boom of the luxury housing market in India?
The luxurious housing market in India is predicted to develop at a compound annual boom price (CAGR) of 17% from 2025 to 2031, doubtlessly accomplishing a market length of USD one hundred twenty five.02 billion with the aid of 2031.
6. Are non-resident Indians (NRIs) contributing to this call for?
Yes, NRIs are extensively contributing to the luxury housing demand. For instance, in DLF's $4 billion ultra-luxurious undertaking near New Delhi, 12% of the 173 gadgets sold were booked by NRIs, reflecting their hobby in top class Indian real property.
7. What kinds of homes are popular within the luxury segment?
Villas, penthouses, and big residences with top rate services are fantastically in demand. Buyers are seeking out residences that provide privacy, exclusivity, and a high trendy of residing.
8. How are builders responding to this fashion?
Developers are launching new luxury initiatives to satisfy the rising demand. For instance, Oberoi Realty acquired eighty one acres of land in Alibaug near Mumbai to increase a luxurious motel and villa project, catering to prosperous customers in search of top class properties.
9. Is the luxury housing boom affecting normal domestic fees in India?
Yes, the surge in luxury housing call for is contributing to a regular upward push in standard domestic charges. Home charges in India are projected to growth by approximately 6% within the next two years, driven by way of the robust call for for luxury homes.
10. What demanding situations does the luxury housing market face?
Despite the increase, the luxury housing market faces challenges including ability oversupply and careful investor sentiment amid worldwide monetary uncertainties. Developers need to stability new launches with actual demand to avoid inventory construct-up.
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