Apartments priced ₹1 crore and above accounted for 62 per cent of total sales in the top seven residential housing markets of India in the first half of 2025, compared with 51 per cent in the same period of 2024, a report published by consultancy firm JLL noted, signalling a growing trend of premiumisation in the real estate market.
The rise in contribution of premium homes was largely driven by a 14 per cent growth in demand for apartments in the price bracket of ₹3-5 crore during the same period.
Simultaneously, the apartments priced ₹5 crore and above segment also registered an 8 per cent growth in demand during the same period.
While premium homes gained market share in the first half, the mass segment’s (sub-₹1 crore) share dropped from 49 per cent in H1 2024 to 38 per cent during H1 2025. The divergent sales trend comes at a time when residential sales volumes decreased by around 13 per cent to 134,776 units in H1 2025 compared with the same period last year.
Samantak Das, chief economist and head of research of JLL, said, "The steady growth in luxury home sales indicates rising buyer affluence, evolving lifestyle aspirations, and a heightened demand for larger, premium living spaces.
“While sales in the ₹1 crore and above category homes grew by approximately 6 per cent compared with H1 2024, the sub-$1 crore segment experienced a significant 32 per cent decline during the same period,” Das observed, adding supply side constraints in mass housing are playing a role in the declining share of this segment in overall sales.
Despite fewer new project announcements during H1 2025, the launch of homes priced over ₹1 crore surged 110 per cent in H1 2025 compared with the same period last year, with Calcutta, Chennai and Bengaluru recording a significant growth in H1 2025 launches.
Sources in the real estate circle attributed rising construction costs and land prices to the shrinking supply in the mass segment. “It is difficult to launch any project in proper Calcutta at a price less than ₹1 crore because of high land prices,” a city-based developer said. Prices across India’s seven major cities increased 5-17 per cent in the April-June period, JLL noted.
