Mumbai, Jan 19 (NationPress) The real estate landscape in India has shown a definitive trend towards premiumization, with enduring demand in higher price brackets. Homes priced over Rs 1 crore expanded their market share to 63% in 2025, up from 53% in 2024, indicating that buyers are favoring value-oriented investments, even as overall sales volumes have declined, according to a report released on Monday.

Particularly notable is the Rs 1.5-Rs 3.0 crore segment, which experienced a remarkable demand surge of around 19% compared to the previous year, as highlighted in the report from JLL.

Chennai stood out with an impressive 31% annual growth, achieving sales of 14,837 units.

Despite a downturn in sales in other cities, Bengaluru, Mumbai, and Pune each exceeded 50,000 units, collectively accounting for 63% of the total annual sales. These cities showcased resilience amidst market moderation, bolstered by strong employment rates, established infrastructure, robust purchasing power, and high-quality lifestyle amenities, as per the report.

The final quarter of 2025 revealed mixed results across cities, with Chennai and Delhi NCR maintaining their sales momentum, driven by an extraordinary 86% year-on-year growth in Chennai.

Home prices in India's seven major cities persisted in their upward trend throughout 2025, with annual price increases ranging between 6% and 13% across various markets.

Chennai, Bengaluru, and Delhi-NCR led the price increases, each registering 13%, followed closely by Kolkata at 12%, according to the report.

India’s residential market remains robust, poised for healthy sales despite temporary fluctuations in volume, with no significant structural corrections on the horizon.

The report suggests that home prices will continue to rise, driven by strong demand, controlled inventory, and enhanced pricing power for developers in premium segments, although growth rates may begin to moderate.

“New launches accounted for 23% of annual sales, highlighting buyer confidence amid market softening. Developers are strategically focusing on higher-margin projects while being selective with mid-range launches based on city and micro-market trends,” stated Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head of Residential Services, India, JLL.