Summary of this article
Luxury housing drives 78% of total growth
Mumbai, Gurgaon lead premium demand
Noida records highest price growth CAGR
The Indian real estate market has entered a new phase of expansion, backed by strong demand in the market fundamentals, investor confidence and a shift in buyer preference. In a joint report by CREDAI and Liases Foras, the top 50 real estate markets were studied and analysed. However, what was a prominent observation was that the ultra-luxury and luxury segment made up nearly 78 per cent of the growth.
The ultra luxury segment (Rs 2 crore and above) dominated the housing market with 51 per cent sales. This was followed by the luxury segment (Rs 1 crore to Rs 2 crore) at a share of 27 per cent.
At the same time, a select few markets continued to show resilience in the mid-income and affordable segment. Against this, five residential markets stood out particularly for their growth drivers. These locations were Greater Mumbai, Gurgaon, Hyderabad, Bengaluru, and Noida-Greater Noida. Here’s how these locations outperformed others on the list.
Greater Mumbai
Greater Mumbai remains India’s most valuable residential market, with sales value exceeding Rs 1.33 lakh crore in the luxury segment alone. The city’s dominance is rooted in its status as the financial capital, combined with limited land availability and consistently high demand from both end-users and investors.
Luxury housing drives the bulk of activity here, particularly in the Rs 2 crore to Rs 5 crore segment. This reflects a strong appetite for premium urban living. Redevelopment projects, infrastructure upgrades, such as metro expansion, and coastal road connectivity have further unlocked value.
While the affordable segment exists, it is largely pushed to peripheral micro-markets of the region.
Gurgaon
Gurgaon has emerged as a standout performer, especially in the ultra-luxury segment. With a housing price compounded annualised growth rate (CAGR) of 7.70 per cent and strong demand concentrated in the Rs 2 crore to Rs 10 crore range, the city is now synonymous with premium real estate.
The primary growth driver is its role as a corporate and financial hub, housing major multinational companies and IT parks. This has created a high-income buyer base that fuels luxury demand.
Hyderabad
Hyderabad has positioned itself as one of the fastest-growing residential markets, backed by a 5.70 per cent price CAGR and consistent demand in the premium segment.
“Hyderabad, a thriving IT and business hub, ranks 124th in the Ease of Living Index and has recorded a 5.70 per cent CAGR in housing prices, indicating strong growth in the real estate sector,” the report said.
The city’s growth story is anchored in its thriving IT ecosystem, business-friendly policies, and relatively affordable pricing compared to other metros. Demand is strongest in the Rs 1 crore to Rs 2 crore bracket, indicating a healthy mix of end-users and investors.
Unlike other cities, Hyderabad maintains a balanced market structure. While luxury housing is gaining attention, the mid-segment continues to contribute significantly to overall absorption.
Bengaluru
Bengaluru continues to be a resilient and stable residential market, driven by its position as India’s leading IT hub. The city has recorded a steady 5.30 per cent CAGR in housing prices, supported by strong job creation and urban expansion.
The demand pattern here is distinctly premium-oriented, with significant traction in the Rs 1 crore to Rs 2 crore and Rs 2 crore to Rs 5 crore segments.
Noida And Greater Noida
Noida and Greater Noida have emerged as high-growth markets within the NCR, recording an impressive 11.60 per cent CAGR in housing prices, which is the highest among major cities.
The region’s growth is driven by rapid urbanisation, IT and manufacturing expansion, and large-scale infrastructure projects, such as expressways and metro connectivity. Unlike earlier cycles dominated by affordable housing, the current demand is concentrated in the premium segment, particularly Rs 1 crore to Rs 5 crore homes.
This shift indicates a maturing market, where buyer confidence has improved significantly.
The takeaway from the data across these markets is the growing divergence between luxury and affordable housing. The premium segment dominates, while also contributing nearly 78 per cent of total sales value, while ultra-luxury homes alone account for over 50 per cent.
In contrast, affordable housing (Rs 30 lakh to Rs 50 lakh) and lower segments have witnessed a decline in demand, reflecting shifting buyer preferences. Rising incomes and lifestyle aspirations have encouraged buyers to upgrade rather than opt for entry-level homes.
The top residential markets in India share a common set of growth drivers, which include increased economic activity, infrastructure development, and strong employment ecosystems that support the premium housing dream.
However, each city has carved a distinct identity. Mumbai thrives on the scarcity and financial dominance of major markets. Gurgaon leads in luxury and corporate-driven demand that is backed by high-net-worth individuals’ investment. Hyderabad balances affordability with rapid growth. Bengaluru offers stability and consistent absorption, while Noida and Greater Noida represent the next wave of expansion in the Delhi-National Capital Region (Delhi-NCR).
