High demand for luxury units drives housing segment premiumisation

Units priced ₹1 crore and above increase market share to 63% of total units sold in 2025

India’s housing market continued to edge towards premiumisation in 2025, with sustained demand in higher price segments (priced ₹1 crore or more) despite a 11 per cent fall in total residential sales from 290,000 units in 2024 to 270,323 units in 2025.

 

Apartments costing above ₹1 crore increased their market share to 63 per cent in 2025 from 53 per cent in 2024, according to a report by realty consultancy JLL.

 

Similarly, data from CBRE showed that the share of sales of homes priced between ₹1.25 crore and ₹3 crore has been the largest in 2025, doubling to 27 per cent from 12 per cent in 2022.

 

The segment’s market share has more than doubled since 2022, driven by rising household incomes, lifestyle upgrades, and sustained NRI interest.

 

The reports added that the high-end housing segment has emerged as the largest contributor to sales for the first time, accounting for around 27 per cent of total transactions.

 

On the other hand, the mass housing segment faced significant headwinds, with sub-₹1 crore home sales declining substantially and their market share dropping to 37 per cent in 2025 from 47 per cent in 2024.

 

Analysts believe that this shift underscores the market’s evolution toward premium developments and increasing buyer preferences for higher-quality projects despite rising construction costs.

 

“The emergence of the high-end segment as the largest residential category for the first time reflects a maturing buyer base that is prioritising lifestyle, longevity, and asset quality,” said Anshuman Magazine, chairman and chief executive officer (CEO) at CBRE.

 

He added that the sector will likely be anchored by calibrated supply infusion, ensuring that new inventory is aligned with delivery realities

 

“This shift underscores the market’s evolution toward premium developments and increasing buyer preferences for higher-quality projects despite rising construction costs,” the JLL report said.

 

Despite a drop in total pan-India housing unit sales, total sales value has climbed by around 11 per cent year-on-year (Y-o-Y) to around ₹5.57 trillion, demonstrating buyers’ preference for quality developments over price premiums.

 

“This healthy sales value performance amid sales unit decline confirms the market’s successful transition toward higher-value transactions, validating developers’ premiumisation strategies and buyers’ appetite for premium offerings,” said Samantak Das, chief economist and head of research and REIS, India at JLL.