India's Housing Market Sees Resilience in Premium Segment Amid Declining Affordable Sales

India’s housing market in 2025 saw a significant divergence between the mass and premium segments. While sales of affordable homes declined sharply, the premium segment demonstrated resilience and growth. According to JLL India, sales of apartments priced below ₹1 crore dropped by 30% year-on-year, pulling overall residential sales down by 11% across seven major cities.

The widening gap between volume-driven mass and affordable housing and value-led premium demand reshaped India’s housing market. The weakness in the mass segment significantly impacted the overall market performance, even as the top end of the market continued to absorb premium supply.

Sales of apartments priced below ₹1 crore declined by 30% year-on-year, dragging overall residential volumes down by 11% across seven major cities, as per data from JLL India. In contrast, homes priced above ₹1 crore expanded their market share, driven by demand for larger homes, indicating a shift towards value-led housing demand.

Apartments in the premium category saw a 6% on-year growth in 2025, with the ₹1.5-3.0 crore category witnessing a 19% surge. The share of premium homes rose to 63% during the year from 53% in 2024, while sub-₹1 crore units fell to 37% of total sales from 47% a year earlier.

“The healthy sales value performance amid sales unit decline confirms the market's transition toward higher-value transactions, validating developers' premiumization strategies and buyers' appetite for premium offerings,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Among key cities, Chennai led the pack with 14,837 units sold, up 31%, while Bengaluru, Mumbai, and Pune each surpassed 50,000 units, collectively capturing 63% of total sales. In contrast, Bengaluru and Delhi NCR recorded declines of 12% and 22%, respectively. During the December quarter, Bengaluru, Delhi NCR, and Chennai each posted 13% growth in capital values, reflecting sustained buyer interest in premium developments.

Despite a 3% fall in overall project launches to 2,93,079 units, premium housing remained a developer focus. Chennai, Kolkata, and Pune posted double-digit launch growth. “Developers strategically prioritized higher-margin projects while being selective with mid-range launches based on city and micro-market level trends. Chennai led this transformation with 45% supply growth, reflecting a shift in buyers' preference from traditional houses to apartments amid evolving lifestyle preferences and end-user requirements,” said Siva Krishnan, Senior MD (Chennai & Coimbatore), Head - Residential Services, India, JLL.

Robust price growth, ranging from 6% to 13% across key cities, and rising construction costs underpinned the market’s premiumization. The total sales value of residential units climbed roughly 11% to around ₹5,57,100 crore in 2025.

According to experts, the housing market is poised for steady sales growth despite short-term volume fluctuations, with no fundamental structural corrections. Home prices are expected to continue their upward trajectory, supported by robust demand, disciplined inventory levels, and strengthened developer pricing power in the premium segment, even as growth rates may moderate over time.