High-end housing becomes India`s largest residential segment for 1st time
India’s residential market saw a structural shift in CY2025 as the high-end housing segment category became the market’s leading segment for the first-time ever, accounting for about 26.8 per cent of transactions, with around 27 per cent share, a report said on Monday.
The report from CBRE South Asia Pvt said the segment’s share has more than doubled since 2022 from 11.8 per cent to 26.8 per cent, driven by rising household incomes, lifestyle upgrades and sustained NRI interest.
Luxury segment recorded 70 per cent year-on-year growth in 2025 with the fourth quarter alone witnessing roughly 62 per cent annualised increase, the report said.
The Q4 2025 saw roughly 62,500 units sold and about 60,100 units launched, with Mumbai, Pune and Delhi-NCR supplying more than 60 per cent of new launches.
Mumbai, Pune, and Delhi-NCR also dominated the supply side, contributing more than 60% of all new launches during the quarter.
“The emergence of the high-end segment reflects a maturing buyer base that is prioritising lifestyle, longevity, and asset quality. The sector will likely be anchored by calibrated supply infusion, ensuring that new inventory is aligned with delivery realities,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa at CBRE.
“Although underlying fundamentals remain strong, macroeconomic headwinds may prompt a segment of homebuyers to maintain a watchful stance in the near term. Still, sustained premiumisation and rising aspiration would remain key drivers shaping India’s housing landscape in the coming quarters,” he added.
The overall trend highlighted a maturing housing market, increasingly driven by quality, aspiration, sustainability, and long-term value creation.
Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said that the developers have closely aligned their offerings with demand dynamics.
RBI’s monetary easing and GST rationalization continue to provide strong tailwinds, reinforcing confidence and demand in the housing sector, Kumar added.
