Premium Homes Surge in Demand as Affordable Flats See Decline in Major Indian Cities
Sales of flats under Rs 1 crore dropped 32% in 7 cities in the first half of 2025, while demand for premium flats rose 6%, reflecting changing Indian homebuyer preferences.
Real Estate MarketPremium HomesAffordable FlatsJll IndiaUrban LifestyleReal Estate PuneJul 28, 2025
In the first half of 2025, sales of flats priced under Rs 1 crore fell by 32% across seven major cities, reveals a JLL India report. These cities, Mumbai Metropolitan Region (MMR), Delhi-NCR, Kolkata, Chennai, Hyderabad, Bengaluru, and Pune, saw a total of 1,34,776 flats sold between January and June, a 13% drop from the previous year.
Conversely, demand for flats priced above Rs 1 crore increased by 6% during the same period. A total of 82,972 premium flats were sold, compared to 51,804 affordable flats. Premium flats now make up 62% of total sales, up from 51% in the first half of 2024, according to the JLL report cited by Jagran.
Ramani Shastri, CMD of Sterling Developers, attributes this shift to several factors, including lower home loan interest rates, government policies supporting real estate, and ongoing infrastructure development in these cities. These elements are encouraging buyers to invest in higher-quality, better-equipped homes.
While the demand for affordable flats is decreasing, this does not imply a drop in home ownership aspirations. Rather, it highlights a growing preference for premium properties as infrastructure and urban amenities improve. If interest rates continue to fall and government support remains, the real estate market is expected to grow steadily.
Frequently Asked Questions
What is the primary reason for the decline in affordable flat sales?
The primary reason for the decline in affordable flat sales is the shift in buyer preferences towards premium properties due to lower home loan interest rates, supportive government policies, and improved infrastructure.
How much did the sales of affordable flats drop in the first half of 2025?
Sales of affordable flats (priced under Rs 1 crore) dropped by 32% in the first half of 2025 across seven major cities in India.
What cities are included in the JLL India report?
The JLL India report includes Mumbai Metropolitan Region (MMR), Delhi-NCR, Kolkata, Chennai, Hyderabad, Bengaluru, and Pune.
What factors are contributing to the increase in demand for premium flats?
The increase in demand for premium flats is attributed to lower home loan interest rates, government policies supporting real estate, and ongoing infrastructure development in major cities.
What is the expected outlook for the real estate market in the near future?
The real estate market is expected to grow steadily if interest rates continue to fall and government support remains, as this will encourage more buyers to invest in premium properties.
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