The survey suggests that while expectations have become more measured, confidence remains intact. Nearly 67% of HNIs and UHNIs remain bullish on India’s economic growth over the next 12–24 months, even as global headwinds persist. Reflecting this realism, 72% of respondents expect India’s GDP growth to stabilise at 6–7% in FY27, signalling moderation—but not pessimism.

Real Estate Seen as a Safe, Long-Term Bet

Amid volatile equity markets and currency concerns, luxury housing continues to stand out as a dependable asset. About 67% of wealthy investors expect annualised real estate returns of up to 15%, reinforcing property’s appeal as a combination of capital appreciation, rental income, and lifestyle security.

Importantly, demand is not driven purely by speculation. The survey reveals a balanced buyer profile, with 53% purchasing luxury homes for capital appreciation and 47% buying for self-use, underlining a growing preference for ownership rooted in permanence and personal consumption.

City-based luxury homes remain the top choice. 31% of respondents prioritised primary residences, while 30% focused on residential investment assets within cities, reflecting continued faith in premium urban micro-markets despite higher entry prices.

Selective Buying Replaces Frenetic Demand

While appetite remains strong, buyers are no longer indiscriminate. The report highlights that the red-hot momentum of 2025—marked by record sales from listed developers and marquee transactions across Mumbai, Delhi-NCR, Goa, and Alibaug—has carried into 2026 with greater selectivity.

Tightening inventory of high-quality projects and rising prices have softened interest in second homes. Among those still exploring the segment, 46% prefer farmhouses near city peripheries, while 33% favour hill or mountain destinations, pointing to lifestyle-led purchases rather than aggressive yield chasing.

Luxury buyers today are prioritising privacy, design excellence, wellness features, and service-led living, forcing developers to recalibrate offerings toward fewer, more differentiated projects in proven locations.

Wealth Creation Continues to Fuel Demand

The survey underscores that India’s luxury housing demand is structurally supported by wealth creation. The rise of startup founders, next-generation entrepreneurs, and senior professionals, alongside traditional business families, has broadened the luxury buyer base.

In 2025, 103 Indian companies raised ₹1.76 lakh crore through IPOs, significantly boosting liquidity among affluent investors.

Commenting on the findings, Amit Goyal, Managing Director, India Sotheby’s International Realty, said,

“Even as markets show signs of moderation, luxury homebuyers continue to take a long-term view. For many, real estate represents permanence—an asset that blends capital efficiency, lifestyle value, and generational continuity. Demand has clearly shifted from scale to substance.”

Prime Assets to Outperform as Prices Cool

While overall optimism remains high, expectations around price growth have cooled. More than half of the respondents expect luxury residential prices to moderate in FY 2026–27, reflecting a maturing market rather than a slowdown.

Currency volatility has also emerged as a concern, with many HNIs and UHNIs monitoring the rupee’s depreciation against the dollar and selectively exploring overseas or dollar-linked assets. Despite this, real estate continues to hold its ground as a preferred physical asset.

Ashwin Chadha, CEO, India Sotheby’s International Realty, noted,

“India’s wealth creation and real estate growth have moved in tandem. While buying decisions are now more cautious, prime urban luxury homes will continue to outperform due to scarcity, defensibility, and long-term relevance.”

A More Professional, Disciplined Market

The survey points to a growing trend of portfolio consolidation and professionalisation. Over half of respondents are considering streamlining their property holdings, and an increasing number are relying on professional advisors rather than informal networks or local brokers.

Overall, the findings indicate that India’s luxury housing market is not immune to moderation—but it is far from losing momentum. For the country’s wealthiest buyers, luxury homes remain a strategic bet in uncertain times, anchored in quality, location, and long-term confidence in India’s growth story.

Also Read: Luxury Homes Appreciate 24%

The post While Markets Slow, India’s Rich Keep Betting Big on Luxury Homes appeared first on Square Feat India.

Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, captured the essence of this shift: “The progress made in 2025 has reaffirmed our belief in the underlying strength of India’s real estate sector. What we are witnessing is not just a cyclical upswing, but a structural realignment built on genuine demand, better governance, maturing capital, and a deepening trust in India’s long-term economic trajectory.”

The Premium Housing Surge: Luxury Becomes the New Normal

If there’s one story that defined 2025 for homebuyers, it’s the unstoppable rise of premium and luxury properties. Homes priced above INR 10 million didn’t just perform well—they dominated, accounting for more than half of all sales across major cities. This isn’t about flashy speculation anymore; it’s driven by financially secure end-users who are investing in their dream lifestyles. Think spacious apartments with sustainable features, top-notch privacy, and smart tech integrations that make everyday living feel futuristic.

In hotspots like Bengaluru, Hyderabad, Chennai, and Delhi NCR, prices jumped by double digits, reflecting a perfect storm of limited high-quality supply and unwavering buyer confidence. Developers responded by doubling down on branded projects that emphasize eco-friendly designs and digital amenities, turning homes into personalized sanctuaries. For instance, sales figures for the first nine months of 2025 showed a robust 268,395 units sold, up from 260,349 in the same period of 2024, with launches keeping pace at 273,880 units compared to 257,804 the year before.

But this premium boom isn’t confined to the big cities. Tier-2 and Tier-3 markets are emerging as the unsung heroes of 2025’s real estate narrative. Improved infrastructure, rising household incomes, and state-level reforms have drawn buyers to places like Jaipur, Lucknow, and Coimbatore, where premium offerings are now viable. This decentralization is one of the decade’s biggest structural changes, making quality living more accessible beyond the metros and potentially easing urban pressures.

For aspiring homeowners eyeing that upscale upgrade, 2025’s trends suggest now might be the time to act—before prices climb even higher. Yet, this success story comes with a caveat: the very factors propelling premium homes are leaving the affordable segment in the dust.

The Affordable Housing Challenge: A Call for Policy Lifelines

While luxury pads flew off the shelves, affordable housing—typically aimed at middle- and lower-income families—faced headwinds that could stall broader market inclusivity. Rising input costs, from construction materials to labor, combined with limited financing options, squeezed developers and buyers alike. Knight Frank’s report flags this as a critical gap, urging targeted policy interventions to revive the segment and ensure real estate growth benefits all Indians.

Imagine a first-time buyer in a growing family, scouring for a modest home under INR 50 lakhs. In 2025, such options were harder to come by, overshadowed by the premium push. Without reforms—like subsidies, easier loans, or incentives for builders—the divide could widen, pricing out a huge swath of the population from homeownership. Baijal’s outlook underscores this: trust in the sector’s future hinges on bridging these gaps through better governance and execution.

Beyond Residential: Commercial and Emerging Sectors Fuel the Fire

The residential story is compelling, but 2025’s real estate triumph was sector-wide. The office market roared back with gross absorption projected to surpass 80 million square feet, led by global capability centers (GCCs) that cemented India’s role as a tech and innovation powerhouse. Multinationals, tech giants, and consultancies flocked to flexible workspaces, which saw record expansions into managed offices and specialized hubs. GCCs alone drove 37% of end-user demand in the first nine months, up from 31% in 2024, while flex spaces jumped to 21% from 19%.

Retail bounced back vibrantly, with malls and high streets evolving into experiential destinations—think curated dining spots, wellness zones, and interactive entertainment that boosted foot traffic and sales. Meanwhile, logistics, warehousing, and data centers emerged as investment darlings, attracting institutional funds amid e-commerce booms and digital infrastructure pushes. Warehousing transactions leaped to 66.7 million square feet in the first nine months, a 24% increase from 53.7 million in 2024, with premium Grade A spaces claiming 61% of the pie, up from 58%.

These trends paint a picture of a maturing market where every corner—from sleek offices to vast warehouses—is buzzing with opportunity, supported by India’s economic momentum.

Looking Ahead: 2026 and Beyond

Knight Frank anticipates the premium residential wave to continue into 2026, boosted by higher incomes and global ties. A potential dip in interest rates could spark a wave of first-time buyers, but the affordable and mid-income segments will need focused support to catch up. Commercial spaces will thrive on GCC and tech demand, with Tier-2 cities playing a bigger role in decentralizing growth.

For everyday readers and homebuyers, 2025’s lessons are clear: the real estate game favors the prepared. Whether you’re splurging on luxury or hunting for value, staying informed on policy shifts and market shifts could make all the difference. As Baijal puts it, the opportunities are “exciting and transformative”—but only if the sector grows inclusively.

Also Read: Affordable housing derailed, 6.1 lakh homes impacted

The post 2025 Real Estate Winners: Premium Homes Fly Off Shelves, Affordable Segment Needs Help appeared first on Square Feat India.

• 97,080 homes sold across top 7 cities, down 9% YoY
• But total sales value up 14% – from ₹1.33 lakh Cr to ₹1.52 lakh Cr, driven by luxury homes
• MMR & Pune lead sales with ~30,260 and ~16,620 units, accounting for 48% of all sales
• New launches up 3% YoY at ~96,690 units – MMR & Pune together added half of them
• Luxury homes (>₹1.5 Cr) form 38% of new supply; affordable housing lowest at 16%
• Unsold inventory almost flat at ~5.61 lakh units
• Average home prices rise 9% YoY – with NCR seeing the sharpest hike of 24%

India’s housing market showed a curious divergence in the July–September quarter (Q3 2025): while fewer homes were sold compared to last year, the total value of sales rose sharply, reflecting the rising influence of luxury and premium housing.

According to ANAROCK Research, around 97,080 homes were sold across the top 7 cities in Q3 2025, marking a 9% decline from the 1.07 lakh units sold in the same period last year. Yet, the total sales value jumped 14%, climbing from about ₹1.33 lakh crore in Q3 2024 to ₹1.52 lakh crore in Q3 2025.

“This quarter highlights a clear trend,” said Anuj Puri, Chairman – ANAROCK Group. “While sales volumes moderated, the value of transactions rose because more buyers are opting for premium and luxury homes. This shift underscores the depth and diversity of demand, particularly in markets like Mumbai and Pune, which continue to dominate sales despite affordability challenges.”

Western India Leads in Sales

Among the major cities, the Mumbai Metropolitan Region (MMR) retained its top spot, recording sales of approximately 30,260 units, although this represented a 16% year-on-year dip. Pune came next with 16,620 units, down 13% annually but still showing an 8% increase from the previous quarter, suggesting resilient buyer interest.

Together, MMR and Pune accounted for nearly half (48%) of all sales across the top 7 cities. Other key markets like the NCR (13,920 units), Bengaluru (14,835 units), and Hyderabad (11,305 units) also posted declines compared to last year, while Chennai (+33% YoY) and Kolkata (+4% YoY) bucked the trend with healthy annual growth.

New Launches Edge Higher

Developers responded with caution, adding about 96,690 new units in Q3 2025 – a 3% increase over last year, but slightly lower than the previous quarter. MMR (29,565 units) and Pune (19,375 units) led the supply pipeline, with Pune notably recording a 56% annual surge in new launches, concentrated in the mid to upper-mid segments (₹40 lakh – ₹1.5 crore).

Meanwhile, Hyderabad (-38% YoY) and NCR (-11% YoY) saw significant declines in new supply, though much of the limited stock in these markets was skewed towards luxury homes.

Across the board, luxury housing (>₹1.5 crore) made up the largest share of new launches at 38%, while affordable housing (<₹40 lakh) had the smallest share at just 16%.

Prices Continue to Climb

Despite slower sales, prices maintained their upward momentum. Average residential prices across the top 7 cities rose 9% year-on-year, reaching ₹9,105 per sq. ft. in Q3 2025 from ₹8,390 in Q3 2024.

The National Capital Region (NCR) posted the sharpest increase at 24%, followed by Bengaluru (10%), while other metros recorded single-digit growth. On a quarterly basis, however, prices grew just 1%, indicating some cooling compared to the double-digit surges of recent years.

Unsold Inventory Stable

Unsold housing stock saw only a marginal decline, standing at 5.61 lakh units at the end of Q3 2025 compared to 5.64 lakh units a year earlier. With sales still outpacing new launches in most cities, the overall demand-supply balance remains relatively healthy.

What This Means for Buyers

For end-users, the message is mixed: while fewer homes are being sold, prices continue to edge higher, especially in premium locations. The festive season ahead could bring some relief as developers launch new projects and announce schemes to attract buyers.

“The festive quarter will be crucial,” Puri added. “Developers have lined up several launches, and if demand holds steady, we could see momentum pick up again despite the broader economic headwinds.”

Also Read: Mumbai Sees A Decline Of 3% In Home Prices.

The post Home Prices Keep Rising Even as Sales Slow appeared first on Square Feat India.

One of the key drivers behind this trend is the ongoing development of the Dwarka Expressway, which has significantly enhanced connectivity between Delhi and Gurugram. This infrastructural advancement has amplified the demand for premium residential projects, attracting affluent buyers seeking exclusivity, convenience, and high-end amenities.

Gurugram Emerging as a Luxury Hub

Speaking on the surge in demand, Parvinder Singh, CEO of Trident Realty, highlighted the growing appeal of Gurugram’s luxury real estate segment.

“As a premium residential developer in Gurugram, we are witnessing a sharp rise in demand for luxury homes, particularly along the Dwarka Expressway. Buyers today seek not just elegant residences but also seamless access to major business districts, making this location an ideal choice.”

Gurugram’s sales value saw a staggering 66% growth in 2024, helping Delhi-NCR surpass Mumbai and Hyderabad to become the top-selling housing market of the year. As per industry reports, the region has crossed Rs 1 lakh crore in total sales value, solidifying its dominance in the luxury real estate sector.

NRI Investments Driving Market Growth

The luxury market is also witnessing a significant influx of Non-Resident Indian (NRI) investments. High-net-worth individuals (HNIs) are showing increased interest in properties that offer not only world-class amenities but also a sense of security and an aspirational lifestyle.

Varun Sharma, Founder & Managing Director of MVN Infrastructure, noted:

“Over 34% of home listings in Delhi-NCR are priced at Rs 10 crore or more, highlighting the region’s transformation into a global luxury real estate hub. NRIs are playing a pivotal role in this trend, seeking spacious, well-connected residences that match international living standards.”

Gurugram & Noida: Competing for the Luxury Market

While Gurugram continues to dominate the luxury housing market with its high-end residential corridors, Noida is quickly emerging as a strong contender. The city’s rapid commercial expansion and major infrastructure projects have made it a lucrative destination for premium housing investments.

Robin Mangla, President of M3M India, commented on this evolving market:

“The increasing prominence of luxury homes in Delhi-NCR reflects a paradigm shift among HNIs and investors. The demand is driven by exclusivity, space, and premium amenities. While Gurugram remains the leader, Noida’s fast-growing commercial infrastructure is positioning it as a new hotspot for luxury real estate.”

A Bright Future for Delhi-NCR’s Luxury Market

Delhi-NCR’s luxury property market is poised for continued growth, supported by infrastructural advancements and evolving buyer preferences. The synergy between commercial development and premium residential projects is creating an environment where luxury real estate is not just about homes but about embracing a sophisticated lifestyle.

As the region cements its place as India’s premier high-end real estate destination, investors and homebuyers alike are finding unparalleled opportunities to indulge in luxury living like never before.

The post Delhi-NCR’s Luxury Property Market Surges: 34% of Homes Priced Above Rs 10 Crore appeared first on Square Feat India.