The Indian real estate market has witnessed significant shifts in 2025, with Delhi-NCR outperforming Mumbai in the ultra-luxury housing segment. Despite a 2% year-on-year decline in overall home sales across major cities, the premium and ultra-luxury segments have remained resilient, showcasing strong growth. Notably, Delhi-NCR has overtaken Mumbai in sales of homes priced between ₹10 crore and ₹50 crore, as well as in the ultra-luxury category, marking a decisive shift in the nation’s real estate landscape. This article explores these key trends and offers insights into the evolving dynamics of the Indian luxury housing market.
Key Findings from Knight Frank India’s H1 2025 Report
1. Overall Market Performance
Housing sales across eight major cities, including Delhi-NCR, Mumbai, Bengaluru, and Chennai, declined by 2% YoY to 1,70,201 units in the first half of 2025. Mumbai led the sales with 47,035 units, followed by Delhi-NCR with 26,795 and Bengaluru with 26,599 units. However, despite the drop in overall sales, the premium segment has flourished.
- Premium Segment Growth: Homes priced above ₹1 crore recorded a 17% growth in YoY sales, with Delhi-NCR and Bengaluru leading in this category.
2. Delhi-NCR Leads Ultra-Luxury Sales
Delhi-NCR has emerged as the top performer in ultra-luxury home sales, surpassing Mumbai across all high-end price categories:
- ₹10–₹20 Crore Segment: NCR recorded 1,055 homes sold, while Mumbai only managed 199 units.
- ₹20–₹50 Crore Segment: Mumbai led with 124 homes, but NCR surpassed expectations with 159 units in the ₹50 crore+ category.
This remarkable shift demonstrates NCR’s growing prominence in the premium housing market, even challenging Mumbai’s status as India’s most expensive residential market.
3. Key Market Segments and Sales Trends
- Affordable Housing: Mumbai dominated the affordable segment (homes under ₹50 lakh) with 18,604 units sold, followed by NCR (1,815 units).
- ₹1–₹5 Crore Segment: Bengaluru topped the sales with 18,299 units, closely followed by NCR (16,416 units).
4. Price and Inventory Trends
- Price Increases: The weighted average prices across various markets saw an increase, with Mumbai rising 8%, NCR and Bengaluru recording 14% growth YoY.
- Unsold Inventory: Unsold inventory across these cities increased by 4% to 5,05,377 units, though the Quarters-to-Sell (QTS) ratio of 5.8 quarters indicates a healthy market.
Summary Table: Key Real Estate Highlights (H1 2025)
| Segment | Delhi-NCR | Mumbai | Bengaluru |
|---|---|---|---|
| Total Housing Sales | 26,795 | 47,035 | 26,599 |
| ₹10–₹20 Crore Segment | 1,055 units | 199 units | N/A |
| ₹20–₹50 Crore Segment | N/A | 124 units | N/A |
| ₹50 Crore+ Segment | 159 units | 34 units | N/A |
| ₹1–₹5 Crore Segment | 16,416 units | 15,270 units | 18,299 units |
| Affordable Segment (Under ₹50L) | 1,815 units | 18,604 units | 1,583 units |
| Price Increase YoY | 14% | 8% | 14% |
Insights from Experts
Gulam Zia, Senior Executive Director at Knight Frank India, commented on the shift in market leadership, saying, “Mumbai has traditionally held the distinction of being India’s most expensive housing market. However, over the past year, Delhi has clearly set the pace in premium apartment sales, with Delhi-NCR leading in all key price categories, including the ₹10–20 crore, ₹20–50 crore, and ₹50 crore+ segments.”
FAQ Section
1. What is the growth trend in ultra-luxury home sales in India?
Ultra-luxury home sales have seen significant growth, especially in Delhi-NCR, which now leads Mumbai in several high-end price categories. The trend shows a shift towards premiumization, with a strong demand for homes priced above ₹1 crore.
2. Which city has seen the highest growth in luxury real estate sales in H1 2025?
Delhi-NCR has outpaced Mumbai in the ultra-luxury home sales category, particularly in segments priced above ₹10 crore, ₹20 crore, and ₹50 crore.
3. What was the overall decline in housing sales across India in H1 2025?
Housing sales across eight major cities declined by 2% YoY, with a total of 1,70,201 units sold in the first half of 2025.
4. Which city has the most active affordable housing market?
Mumbai remains dominant in the affordable housing market, recording 18,604 units sold in homes priced under ₹50 lakh.
5. How are real estate prices trending across major cities?
Real estate prices saw an upward trend across major cities in H1 2025. NCR and Bengaluru recorded a 14% YoY increase, while Mumbai saw an 8% rise in average prices.