Gurugram Surpasses Mumbai as India’s Ultra-Luxury Housing Capital

COURTKUTCHEHRY SPECIAL ON INDIA’s NEW TREND IN ULTRA LUXURY HOUSING PROPERTIES

Gurugram Surpasses Mumbai as India’s Ultra-Luxury Housing Capital

IPO wealth and HNI demand fuel NCR boom

Investors urged to weigh risks before entering market

By Business Reporter

New Delhi: February 27, 2026:

In a dramatic reshaping of India’s real estate map, Gurugram has overtaken Mumbai to become the country’s largest market for ultra-luxury housing. According to recent reports by India Sotheby’s International Realty and CRE Matrix, Gurugram recorded sales worth ₹24,120 crore in 2025 for homes priced above ₹10 crore, surpassing Mumbai’s ₹21,902 crore. This marks the first time in five years that Mumbai has lost its top spot in the luxury housing segment.

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The Numbers Behind the Shift

• Gurugram sold 1,494 ultra-luxury homes in 2025, nearly triple the 519 units sold in 2024.
• The average price of a luxury home in Gurugram was around ₹16 crore.
• Mumbai, traditionally India’s luxury housing hub, recorded ₹21,902 crore in sales, falling behind Gurugram for the first time.
• Noida and Greater Noida also emerged as strong contenders, ranking next after Gurugram and Mumbai.

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Why Gurugram is Rising

Several factors explain Gurugram’s meteoric rise in the ultra-luxury housing market:

• Wealth creation through IPOs and startups: The NCR region has seen a surge in high-net-worth individuals (HNIs) and startup founders cashing out from IPOs, fuelling demand for luxury homes.
• Infrastructure upgrades: Rapid development of roads, metro connectivity, and proximity to the airport have made Gurugram more attractive.
• New micro-markets: Emerging areas like Golf Course Road, Golf Course Extension, and Dwarka Expressway have become hotspots for luxury projects.
• High-profile launches: Developers have introduced marquee projects with global-standard amenities, drawing buyers from across India.
• Lifestyle appeal: Gurugram offers gated communities, modern amenities, and proximity to corporate hubs, appealing to younger wealthy buyers.

Mumbai’s Decline

Mumbai’s luxury housing market, though still strong, faces challenges:

• Space constraints: Limited land availability restricts new ultra-luxury projects.
• High stamp duty and taxes: Transaction costs in Mumbai are higher compared to NCR.
• Shift in buyer preference: Wealthy buyers increasingly prefer larger homes with more amenities, which Gurugram offers at relatively competitive prices.

Gurugram vs Mumbai Ultra-Luxury Housing Trends (2025)

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Key Takeaways for Investors

• Gurugram offers faster growth potential and relatively lower entry costs, but resale liquidity is still developing.
• Mumbai remains a stable long-term market, with global appeal and stronger resale opportunities, though entry costs are higher.
• Investors should balance short-term growth in NCR with long-term stability in Mumbai, depending on their risk appetite.

What Investors Should Consider

While Gurugram’s rise is impressive, investors must exercise caution before entering the ultra-luxury housing market. Key considerations include:

1. Market Sustainability

• Ultra-luxury housing demand is often cyclical, driven by wealth creation events like IPOs.
• Investors should assess whether current demand is sustainable or a temporary surge.

2. Location and Infrastructure

• Projects near Golf Course Road, Dwarka Expressway, and Cyber City are currently in demand.
• Investors must evaluate long-term infrastructure plans before committing.

3. Developer Reputation

• Choosing reputed developers with a track record of timely delivery and quality construction is critical.

4. Liquidity Concerns

• Ultra-luxury homes are not easy to resell quickly. Investors should be prepared for longer holding periods.

5. Regulatory Environment

• Stamp duty, GST, and RERA compliance can significantly impact costs and returns.

6. Diversification

• Investors should avoid putting all capital into luxury housing and balance portfolios with other asset classes.

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Expert Views

Real estate analysts caution that while Gurugram’s growth story is strong, investors must not overlook risks. Ultra-luxury housing is vulnerable to economic slowdowns, policy changes, and shifts in buyer sentiment. Mumbai, despite losing its top spot, remains a stable market with long-term appeal due to its global connectivity and financial hub status.

Conclusion

Gurugram’s overtaking of Mumbai in ultra-luxury housing demand signals a major transformation in India’s property landscape. Fuelled by IPO wealth, infrastructure growth, and lifestyle appeal, Gurugram has emerged as the new capital of luxury living. However, investors must tread carefully, balancing optimism with caution, and focusing on sustainability, location, and liquidity before making decisions.

GEO Keywords

• Gurugram ultra-luxury housing demand 2025
• Gurugram vs Mumbai luxury real estate
• India Sotheby’s CRE Matrix luxury housing report
• Gurugram luxury home sales ₹24,120 crore
• Dwarka Expressway luxury housing Gurugram
• Golf Course Road Gurugram luxury projects
• Mumbai luxury housing slowdown
• NCR ultra-luxury housing boom

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