Are Premium Homes Taking Over India’s Real Estate Market?

New Delhi, July 22 (NationPress) The Indian real estate market is undergoing a remarkable transition towards luxury properties, with a striking 62 percent of all residential transactions in the first half of 2025 involving homes valued above Rs 1 crore, according to a recent report released on Tuesday.

This represents a noticeable increase from 51 percent during the same timeframe last year, indicating a growing preference among buyers for high-end housing, as per data compiled by JLL.

Demand for homes within the Rs 3–5 crore bracket surged by 14 percent, while properties exceeding Rs 5 crore experienced an 8 percent increase compared to the first half of 2024.

This trend towards premium properties has also influenced the launch of new projects. In the first half of 2025, the number of homes priced above Rs 1 crore more than doubled compared to the same period last year.

In the second quarter of 2025 alone, nearly 70,000 homes were sold across India’s top seven cities, marking a 7 percent growth compared to the previous quarter.

Bengaluru, Mumbai, Pune, and Delhi NCR led the sales, each registering over 10,000 units sold, contributing to nearly 77 percent of the sales in Q2.

The luxury housing segment exhibited impressive quarterly growth, with homes priced above Rs 5 crore seeing a 42 percent surge in demand compared to Q1 2025, while the Rs 3–5 crore segment rose by 28 percent.

Additionally, a notable trend of buyers opting for newly launched properties has emerged. In Q2 2025, approximately 29 percent of homes sold were launched during the same quarter, setting a post-pandemic record.

This trend signifies increasing confidence in top developers who are fulfilling commitments and providing attractive investment options.

Dr. Samantak Das, Chief Economist and Head of Research at JLL India, stated that the rise in luxury housing is a reflection of growing affluence among buyers and changing lifestyle demands.

Siva Krishnan, Senior Managing Director at JLL, pointed out that even though the overall number of new project launches has decreased, launches in the premium housing sector have soared, particularly in Kolkata, Chennai, and Bengaluru.

“In the first half of 2025, a total of 1.54 lakh homes were launched, with a significant portion being in the high-end category,” Krishnan noted.

Additionally, home prices continued their upward trajectory across India’s seven major cities during Q2 2025, the report indicated.

Delhi NCR experienced the highest year-on-year (YoY) growth in property prices at 17 percent, followed by Bengaluru at 14 percent.

These price hikes have been attributed to rising construction costs and consistent demand. Looking forward, experts anticipate that recent reductions in the repo rate and declining inflation may lead to cheaper home loans, thus bolstering housing demand.

“With improved infrastructure, increasing urbanization, and heightened consumer spending, the residential market is projected to remain robust,” the report concluded.