Surge in Demand for Homes Above Rs 1 Crore Fuels Indian Market: Report

Mumbai, April 24 (NationPress) The rising demand for properties priced at Rs 1 crore and above has significantly enhanced the Indian real estate market in the first quarter of this year, averting a steep decline in total sales, which reached 65,250 units, as reported on Thursday.

Residential sales during Q1 2025 (January-March) saw only a slight dip, totaling 65,246 units. This minor reduction can largely be attributed to strong demand within the Rs 3-5 crore and Rs 1.5-3.0 crore segments, effectively offsetting the slowdown in more affordable housing, according to a report by JLL.

The consistent rise in the sales of higher-priced homes indicates a growing affluence among buyers, evolving lifestyle preferences, and an increasing preference for larger, premium properties.

The report highlights that the housing sales in India’s major seven cities are predominantly led by Bengaluru, Mumbai, and Pune, which together represent 66 percent of the total Q1 sales.

The high concentration of multinational corporations and startups contributing to substantial employment opportunities, paired with ongoing infrastructure developments, render these cities ever more appealing for residents and professionals.

Notably, in recent quarters, a significant portion of the sales volume has stemmed from projects launched within the same period.

In Q1 2025, approximately 25 percent of the sales were attributed to new launches occurring that quarter. The trend is being propelled by launches from reputable developers, offering assurances of timely delivery and consistent price growth, as stated in the report.

“The residential real estate sector is witnessing a transformation in buyer preferences, with a decline in demand for homes priced below Rs 1 crore and an increasing inclination towards mid to high-end properties. This trend indicates a potential upward shift in overall market dynamics,” remarked Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

“The surge in demand for higher-priced properties has safeguarded overall housing sales from a more severe drop,” Das added.

Developers are now placing greater emphasis on mid to high-end projects to meet the existing demand trends. The high-end housing sector has seen a steady upward trajectory, with a 107 percent year-on-year increase in launches for properties priced at Rs 1 crore and above, spurred by strong sales in this category.

The growth in property launches, despite economic uncertainties, reflects strong developer confidence in the demand for high-end housing, the report concluded, forecasting 2025 as a year of robust growth in residential sector demand.