Premium Housing Demand Surges Despite 12% Drop in Overall Residential Sales in 2025

In the first nine months of 2025, India's residential property market experienced a notable shift, with a surge in demand for premium housing despite a 12% dip in overall residential sales. According to a report by JLL, this trend reflects a growing preference for high-end properties among buyers, driven by factors such as improved quality, amenities, and location.

The report highlights that premium housing projects, which are typically characterized by superior construction, advanced facilities, and prime locations, have become increasingly attractive to buyers. This segment has seen a significant increase in sales, even as the overall market has faced challenges. The robust performance of premium housing is attributed to several factors, including economic stability, rising disposable incomes, and a greater focus on lifestyle and quality of living.

JLL's analysis indicates that while the overall residential market has been impacted by various economic and regulatory factors, the premium segment has remained resilient. Developers are responding to this trend by launching more high-end projects and investing in marketing and branding to attract discerning buyers. The shift towards premium housing is also being driven by a growing number of young professionals and affluent families who are willing to pay a premium for superior living experiences.

In major cities like Mumbai, Delhi, Bangalore, and Hyderabad, the demand for premium housing has been particularly strong. These cities have seen a significant influx of high-net-worth individuals and young professionals who are looking for luxury properties that offer a higher standard of living. The premium segment has also benefited from the implementation of the Real Estate (Regulation and Development) Act (RERA), which has brought greater transparency and accountability to the market, thereby boosting consumer confidence.

However, the broader residential market continues to face challenges, with overall sales volumes declining by 12% in the first nine months of 2025. This decline is attributed to factors such as high property prices, stringent lending norms, and economic uncertainties. The slowdown in the mid-segment and affordable housing markets has been more pronounced, with developers facing difficulties in attracting buyers and generating sales.

Despite these challenges, the premium housing segment remains a bright spot in the market, with developers and investors optimistic about its future prospects. The trend towards premium housing is expected to continue in the coming years, driven by ongoing economic growth, rising consumer expectations, and a growing emphasis on lifestyle and quality of life.

In conclusion, while the overall residential market in India faces headwinds, the premium housing segment is demonstrating resilience and growth. Developers and investors are adapting to this trend by focusing on high-quality projects that cater to the needs and preferences of affluent buyers. As the market continues to evolve, the premium housing segment is likely to play an increasingly important role in shaping the future of the residential property market in India.

For more information on the Indian real estate market and the trends shaping it, JLL provides comprehensive insights and analysis. Their reports and studies offer valuable data and perspectives for stakeholders in the real estate industry.