Home Prices to Stabilize After Three Years of Surge, Says JLL’s Samantak Das
Samantak Das, Chief Economist and Head of Research at JLL, predicts that home prices in India’s major cities will stabilize after three years of steady appreciation, providing relief to buyers. Despite a decline in total housing sales, premium housing segments continue to show strength.
Real EstateHousing PricesPremium HousingIndian MarketJllReal Estate NewsOct 28, 2025
He noted that housing prices have already risen sharply in recent years and are now likely to stabilize. Interest rates have remained affordable over the last few quarters, creating a conducive environment for both end-users and investors. This affordability has been a significant factor in sustaining the market.
Das also highlighted that land prices have risen sharply in recent years, while construction costs have increased by about 5–10%. With project economics becoming tighter, developers are showing restraint, leading to a plateau in new launches and a more selective approach toward upcoming projects.
Developers are now exercising caution in new launches, focusing on demand-driven, location-specific projects. Das said new supply is likely to grow modestly at around 5–6% annually, with selective launches in areas showing sustained buyer interest. This cautious approach is expected to maintain market stability and prevent a glut of unsold properties.
While total housing sales across the top seven cities saw a decline in volume terms, apartments priced at ₹1 crore and above recorded a 4% growth in sales during the first nine months of 2025. This indicates that the premium housing segment continues to drive the market. Premium homes have become the “new normal” across India’s top cities, with a larger share of this segment signaling a structural shift in demand. Developers are increasingly focusing on higher-value projects to meet this demand.
Urban buyers, particularly millennials and Gen Z, are showing a clear preference for larger homes with modern amenities and shorter commute times of 20–30 minutes. “Their tolerance for long commuting has reduced, and they prefer staying within city limits,” Das explained, adding that this trend is sustaining premium demand even in a high-cost environment.
In summary, the Indian real estate market is expected to see a stabilization in home prices, driven by a combination of rising costs, cautious developer behavior, and a strong premium housing segment. This shift is likely to benefit both buyers and the broader market by ensuring a more balanced and sustainable growth trajectory.
Frequently Asked Questions
What is the current trend in home prices in India's major cities?
Home prices in India's major cities are expected to stabilize after three years of steady appreciation, according to JLL’s Samantak Das.
How have interest rates impacted the real estate market?
Interest rates have remained affordable over the last few quarters, creating a conducive environment for both end-users and investors, which has helped sustain the market.
What is the trend in new housing launches?
Developers are exercising caution in new launches, focusing on demand-driven, location-specific projects. New supply is likely to grow modestly at around 5–6% annually.
Which segment of the housing market is showing growth?
Apartments priced at ₹1 crore and above have recorded a 4% growth in sales during the first nine months of 2025, indicating that the premium housing segment continues to drive the market.
What are the preferences of urban buyers in the real estate market?
Urban buyers, particularly millennials and Gen Z, prefer larger homes with modern amenities and shorter commute times of 20–30 minutes, staying within city limits.
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