Gurugram has overtaken Mumbai to become India’s largest market for homes priced at Rs 10 crore and above in 2025.
According to the High-End Luxury Housing Report by India Sotheby’s International Realty and CRE Matrix, the
This is the highest ever value achieved by any Indian city in this segment.
The shift has raised a key question. Why are India’s ultra-rich choosing Gurugram over Mumbai, long seen as the country’s most prestigious property market?
Gurugram is often criticised for waterlogging, traffic jams and civic issues during the monsoon. Yet demand at the top end remains strong.
Prasun Kumar, CMO, Magicbricks, said buying decisions in the ultra-luxury segment are driven more by long-term economic factors than by seasonal infrastructure problems.
“While civic challenges persist, ultra-luxury buying decisions are typically driven by structural economic factors rather than episodic infrastructure disruptions,” he said.
He pointed to Gurugram’s strong economic base.
“Gurugram remains one of India’s strongest corporate and technology hubs, hosting a dense concentration of MNCs, global capability centres, startups, and financial services firms. This sustained income and wealth creation directly feeds premium housing demand,” Kumar said.
Another reason is the nature of new luxury projects.
Kumar said ultra-luxury developments today function as “self-contained ecosystems”. These include gated communities with high security, full power back-up, private amenities, concierge services and international-standard design.
“For buyers at the Rs 10 crore-plus level, internal project quality often outweighs broader civic inefficiencies,” he said.
In other words, buyers are paying for controlled living environments that reduce their exposure to external infrastructure gaps.
Infrastructure upgrades are also playing a role. According to Kumar, projects such as the Dwarka Expressway and better arterial connectivity to Delhi and the airport have improved accessibility, even if congestion within the city remains a concern.
Pricing is another major factor.
Compared to traditional luxury markets like Mumbai, Gurugram offers larger homes at more competitive per-square-foot rates.
“For ultra-HNIs prioritising space, privacy, and community living, that trade-off is compelling,” Kumar said.
Mumbai continues to be India’s most established and prestigious luxury housing market. Land scarcity keeps prices elevated and supply tight.
However, Gurugram has surpassed Mumbai in total ultra-luxury sales value in 2025.
Kumar said this does not mean Mumbai has lost its premium status, but it does reflect changing buyer preferences in certain segments.
“Mumbai’s supply constraints keep entry prices exceptionally high. Gurugram offers larger floor plates and new-generation luxury developments. For comparable budgets, buyers often get materially more space in Gurugram,” he said.
This relative value advantage is drawing significant ultra-high-net-worth capital to Gurugram.
With prices rising and sales touching record levels, questions are being raised about a possible bubble.
Kumar said current valuations do not appear disconnected from demand.
“At present, valuations do not appear detached from underlying demand,” he said.
He added that the Rs 24,120 crore sales value in 2025 reflects actual transaction momentum, not just quoted prices.
Demand, he said, is being supported by rising domestic wealth creation, growth in startup exits, strong senior-level corporate compensation and the expansion of family offices and investment capital.
“Luxury real estate globally is cyclical. Sustained sharp price acceleration without corresponding absorption would warrant caution. For now, record transaction values indicate genuine depth of demand rather than speculative excess — but the segment should be monitored for signs of overheating,” Kumar said.
Kumar also mentioned that demand appears largely end-user driven.
“A substantial share of buyers are purchasing for self-occupation, long-term residence, or family consolidation. Unlike previous speculative cycles, current transaction patterns suggest genuine consumption demand rather than short-term flipping,” he said.
Investor participation exists, particularly among those seeking capital appreciation or portfolio diversification. However, he said the record sales value indicates broad-based absorption rather than speculative froth.
Taken together, economic strength, modern luxury supply, better connectivity and relative pricing flexibility seem to be positioning Gurugram as the preferred destination for India’s ultra-rich in 2025, even as Mumbai retains its legacy appeal.