Homes Priced Above Rs 1 Crore Account for 63% of India’s Housing Market in 2025

Mumbai: India’s housing market continued to show strong signs of premiumisation in 2025, with homes priced above Rs 1 crore increasing their market share to 63 per cent, up from 53 per cent in 2024. This shift highlights buyers’ growing preference for value-led purchases, even as overall housing volumes moderated, according to a report released on Monday.

The trend was particularly pronounced in the Rs 1.5 crore to Rs 3 crore segment, where demand rose by around 19 per cent compared to the previous year, the JLL report noted.

Chennai emerged as the standout performer, recording a robust 31 per cent year-on-year growth to reach sales of 14,837 units.

Although most cities witnessed a decline in overall sales, Bengaluru, Mumbai and Pune each crossed the 50,000-unit mark. Together, these three cities accounted for 63 per cent of total annual housing sales. The report attributed their resilience during the market’s moderation phase to strong employment opportunities, well-developed infrastructure, higher purchasing power and superior lifestyle amenities.

In the fourth quarter of 2025, city-level performance varied, with Chennai and Delhi-NCR maintaining strong sales momentum. Chennai led the way with an exceptional 86 per cent year-on-year growth during the quarter.

Home prices across India’s seven major cities continued their upward trajectory throughout 2025, with annual appreciation ranging between 6 per cent and 13 per cent. Chennai, Bengaluru and Delhi-NCR topped the list with 13 per cent price growth each, followed by Kolkata at 12 per cent.

The report said India’s residential real estate market remains fundamentally strong and well-positioned for healthy sales despite short-term volume adjustments, with no signs of structural correction.

Home prices are expected to keep rising, supported by strong demand, disciplined inventory levels and increased pricing power for developers in premium segments, although the pace of growth may moderate in the future.

“New launches accounted for 23 per cent of annual sales, reflecting sustained buyer confidence despite market softening. Developers focused on higher-margin projects and remained selective with mid-range launches, guided by city- and micro-market-specific trends,” said Siva Krishnan, Senior Managing Director (Chennai and Coimbatore) and Head of Residential Services, India, JLL.

With inputs from IANS