Delhi-NCR Overtakes Mumbai in Ultra-Luxury Home Sales in H1 2025

The first half of 2025 has brought a notable shift in India’s high-end residential market. While overall housing sales across the top eight cities dipped slightly by 2% year-on-year, the ultra-luxury home sales segment not only held strong but surged. And surprisingly, Delhi-NCR has outpaced Mumbai in this premium space, particularly in the ₹10–50 crore and ₹50 crore-plus categories.

This evolution in buying patterns signals a larger trend of premiumisation in India’s real estate market, with more homebuyers gravitating toward expansive, high-value residences in key urban centres.

A Minor Dip in Sales, But Luxury Defies the Trend

Knight Frank India’s latest report reveals that total housing sales in the top 8 Indian cities fell slightly to 1,70,201 units in H1 2025. Despite this, demand for homes priced above ₹1 crore saw a remarkable 17% jump compared to the previous year.

Interestingly, almost 49% of all housing transactions were in the ₹1 crore and above category, indicating a clear preference shift toward premium living. Buyers today are seeking larger homes, better amenities, and prestigious addresses, factors that are now defining the ultra-luxury residential landscape.

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Delhi-NCR Emerges as the Ultra-Luxury Capital

While Mumbai has long been synonymous with India’s high-end property market, Delhi-NCR has now claimed the top spot in ultra-luxury home sales. In H1 2025, the region recorded:

• 1,055 units sold in the ₹10–20 crore price band
• 159 homes sold for ₹50 crore and above

These numbers exceeded Mumbai’s tally in both categories. Though Mumbai managed to lead in the ₹20–50 crore segment with 124 deals, NCR’s overall performance in the ultra-premium category was unmatched.

Breaking Down the High-End Market Segments

A closer look at the data shows how the ultra-luxury home sales segment is shaping up across different price brackets:

• ₹1–5 crore: 75,042 units sold (most active category)
• ₹5–10 crore: NCR leads with 4,158 sales, far ahead of Mumbai
• ₹10–20 crore: NCR sold 1,055 units, while Mumbai managed 199
• ₹20–50 crore: Mumbai led with 124 sales
• ₹50 crore+: NCR dominated again, registering 159 transactions versus Mumbai’s 34

These figures highlight a fundamental shift in the concentration of wealth-driven real estate demand.

Other Cities Show Mixed Performance

Beyond NCR and Mumbai, other metro cities also had notable contributions in the luxury housing segment:

• Bengaluru recorded 18,299 units in the ₹1–5 crore segment more than both Mumbai and NCR
• Chennai was the only city to post overall growth, with a 12% increase in total home sales
• Kolkata and Ahmedabad experienced moderate to steep declines, while Hyderabad and Pune remained relatively stable

Why the Surge in Ultra-Luxury Home Sales in NCR?

Several factors are driving NCR’s dominance in ultra-luxury home sales:

• Availability of spacious land parcels in prime locations like Lutyens Delhi, South Delhi, and Gurugram
• Increased presence of family offices, HNIs, and NRIs investing in legacy properties
• Buyers migrating from compact Mumbai homes to NCR’s larger, more palatial options
• Strong growth in job creation and business ecosystems, particularly in Gurugram and Noida

The rise of branded luxury residences and gated townships with five-star amenities is further boosting buyer interest in the region.

Affordable Housing on a Declining Path

While luxury flourished, the affordable housing segment witnessed a downturn. Units priced under ₹50 lakh saw an 18% drop year-on-year, falling to 37,796 units across India. The sharpest drop occurred in Bengaluru, where sales fell 85% compared to 2018 levels.

Supply issues remain a key bottleneck. New launches in the affordable category dropped by 31% YoY in H1 2025, with just 30,806 new units added. This mismatch between demand and supply continues to weigh on the lower segment of the market.

Real Estate Price Trends in H1 2025

With demand climbing in premium categories, property prices rose across major metros:

• Mumbai: ₹8,532 per sq. ft. (up 8%)
• Delhi-NCR: ₹5,535 per sq. ft. (up 14%)
• Bengaluru: ₹7,052 per sq. ft. (up 14%)
• Hyderabad: ₹6,326 per sq. ft. (up 11%)

These price increases reflect developers’ focus on premium buyers and the shortage of inventory in top locations.

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Expert View: Is Mumbai Losing Its Ultra-Luxury Crown?

According to Gulam Zia, Senior Executive Director at Knight Frank India, while Mumbai has historically been India’s most expensive housing market, Delhi-NCR has emerged as the frontrunner in premium apartment transactions.

He notes that Mumbai may have seen individual deals in the ₹700 crore range, but Delhi recorded over 100 sales above ₹100 crore, a statistic that underscores growing investor trust in NCR’s ultra-luxury offerings.

Whether this is a temporary trend or a long-term shift remains to be seen, but the current numbers speak volumes about Delhi’s rising status.

Conclusion

The first half of 2025 marks a turning point in India’s high-end housing segment. Ultra-luxury home sales are no longer Mumbai’s monopoly. Delhi-NCR has not only matched Mumbai’s pace but surpassed it in key segments, including the ₹10–20 crore and ₹50 crore+ brackets.

As developers continue to cater to affluent buyers and demand for legacy homes rises, NCR seems poised to remain at the forefront of India’s luxury real estate boom. Meanwhile, cities like Bengaluru and Chennai are also making their mark in the premium housing space, further diversifying the country’s high-value property map.

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