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Premium housing market cornered 62% market share in 2025

Premium housing market cornered 62% market share in 2025

Time of India2 days ago
Within the premium segment, the rise was largely driven by the 14% growth in demand for houses priced Rs 3-5 crore. (AI image)
NEW DELHI: Houses priced at Rs 1 crore and above were in highest demand in the first half of 2025, according to a research report by JLL. The premium segment accounted for 62% of the sales during the period.
This is a significant increase from the 51% market share of the premium segment during the same period last year.
Within the premium segment, the rise was largely driven by the 14% growth in demand for houses priced Rs 3-5 crore.
At the same time, the mass segment's (houses priced below Rs 1 crore) share dropped to 38% in the first half of 2025 from 41% during the same period of last year.
'The steady growth in luxury home sales indicates rising buyer affluence, evolving lifestyle aspirations, and a heightened demand for larger, premium living spaces,' said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Though launches have slowed down, developers are focusing more on high-end and premium projects to align with current demand patterns. The April-June quarter of 2025 saw 74,239 new homes enter the market, bringing the total to 154,086 units in the first half of 2025.
Bengaluru, Mumbai, and Pune retained their leadership position in India's housing sector. These three cities collectively hold a 63% share in the residential sales volume across top seven cities.
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Launches of homes priced over Rs 1 crore surged 110% in the first half of 2025 compared to the same period last year.
But it was Delhi NCR that led the y-o-y property price growth. While home prices across India's seven major cities continued to climb in the first half of 2025, Delhi NCR saw the highest jump at 17%, while Bengaluru followed at 14%. This widespread price growth across all major markets stems from higher building costs and consistent buyer demand, which has encouraged developers to launch more premium housing options.
The rate cuts by the RBI and declining inflation levels are expected to boost India's housing market by making home loans more affordable, helping stabilize building costs, and enhance consumer confidence—creating favourable conditions for both homebuyers and developers. However, housing finance companies have not lowered lending rates even though the repo rate has been cut by almost 100 basis points in the past 12 months.
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