India’s housing market is undergoing a decisive shift toward premium and value-oriented living, even as overall sales volumes show signs of cooling.
Apartments priced at ₹1 crore and above recorded a 4% year-on-year (YoY) increase in sales during January–September 2025, according to real estate consultancy JLL India.
In contrast, total housing sales across the country declined by 12 per cent during the same period, reflecting weakening demand in the affordable and mid-income segments.
The premium housing category, defined as homes priced at ₹1 crore and above, now accounts for 62% of total apartment sales, a sharp jump from 52% a year ago.
Meanwhile, the mass housing segment, comprising homes below ₹1 crore, witnessed a steep 30% decline in sales. Within the premium bracket, homes priced between ₹1.5 crore and ₹3 crore led the uptrend, with a 10% rise in demand.
JLL attributes this shift to a growing preference for “value-driven purchases,” as homebuyers increasingly prioritize location, developer credibility, and long-term appreciation potential over low-cost entry options.
Among India’s top seven cities, Bengaluru, Mumbai, and Pune continued to dominate, together accounting for over 60% of total housing sales. Bengaluru recorded sales of 45,815 units, down 11% YoY, while Mumbai saw a 16% decline to 42,398 units.
Pune bucked the broader slowdown, registering a modest 1% increase in sales to 40,269 units. Chennai stood out with a 15% annual rise in demand and led price appreciation with a 14% increase in Q3 2025. Kolkata, despite lower sales volumes, posted the highest price jump at 16% YoY.
Overall, India’s top seven cities sold 202,756 apartments in the first nine months of 2025, compared with 230,000 units during the same period last year. While transaction volumes declined, housing prices remained firm across all major metros.
Prices rose 16% in Kolkata, 14% in Chennai and 13% each in Delhi-NCR and Bengaluru. The JLL report noted that elevated construction costs, a strategic focus on higher-margin projects, and low inventory levels have helped sustain price growth despite weaker sales momentum.
New housing supply remained largely stable, with 225,001 units launched between January and September 2025, a marginal 1% YoY decline.
Notably, launches in the premium segment (₹1 crore and above) rose 5%, underscoring developers’ growing confidence in the higher end of the market. Kolkata, Chennai, Pune, and Bengaluru saw the strongest growth in new project launches, with Kolkata reporting a 168% YoY surge.
Average ticket sizes are expected to rise further, with large, listed developers — backed by stronger balance sheets — likely to capture a greater share of the market in the coming quarters.