India’s Housing Market Turns Premium in H1 2025, with 62% of Sales from ₹1 Crore+ Homes

The first half of 2025 marked a clear shift in India’s residential real estate market premium homes priced above ₹1 crore have taken center stage. According to recent data, these high-value properties accounted for 62% of total home sales across India’s top cities, rising from 51% during the same period last year. This transformation highlights the changing preferences of homebuyers who are now prioritizing lifestyle, space, and location over just affordability.

Among the driving forces behind this trend are Bengaluru, Mumbai, and Pune cities that collectively contributed to nearly 63% of all home sales in H1 2025. The numbers reflect not just an increase in wealth, but also a growing demand for quality living and future-ready homes.

Premium Homes Priced Segment Takes the Lead

For the first time, more than six out of every ten homes sold in H1 2025 were priced above ₹1 crore. A total of 82,972 premium homes priced over this threshold were sold between January and June, a sharp rise compared to the 51% share these homes held in the same period last year.

This jump in demand can be attributed to multiple factors: rising incomes, changing lifestyle aspirations post-pandemic, and an increasing number of end-users looking for spacious, well-located homes in urban centers.

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Bengaluru, Mumbai, and Pune: The Growth Triad

Three cities, Bengaluru, Mumbai, and Pune played a critical role in shaping the premium housing landscape in H1 2025. Together, they made up almost two-thirds of the total residential transactions across India’s top seven metros.

• Bengaluru led with 14,845 units sold in Q2 alone, reflecting strong demand from IT professionals and end-user buyers.
• Mumbai, long known for its luxury market, clocked 13,890 transactions, driven by both upgraders and investors.
• Pune followed closely with 13,514 units, highlighting how demand for premium homes priced over ₹1 crore is spreading beyond traditional metro hubs.

Luxury and Ultra-Luxury Segments on the Rise

Not only did the ₹1 crore-plus segment dominate, but high-end luxury homes in the ₹3–5 crore bracket also witnessed robust activity. Sales in this range grew by 14% year-on-year, reaching 13,576 units in H1 2025. Meanwhile, ultra-luxury homes priced above ₹5 crore recorded an 8% jump in demand with 7,970 units sold, a clear sign that affluent buyers are returning to the market with confidence.

This growth reinforces the idea that buyers are no longer just looking for a roof over their heads. They’re seeking homes that match evolving lifestyle needs larger configurations, premium amenities, and well-connected locations.

Decline in Sub-₹1 Crore Housing Market

While the top end of the market soared, the sub-₹1 crore category faced a noticeable downturn. Sales in this segment fell by 32% year-on-year to just 51,804 units, dropping its overall share to 38% down from 49% in H1 2024.

This sharp contrast between segments shows how premium homes priced above ₹1 crore have begun to dominate buyer sentiment, sidelining the mass housing market which once led India’s residential landscape.

Q2 2025 Sees Positive Momentum Despite H1 Dip

Despite a 13% drop in total housing sales in H1 2025 (down to 1.3 lakh units), the second quarter showed signs of revival. A total of 69,630 transactions were recorded in Q2, reflecting a 7% rise from Q1.

Cities like Bengaluru, Mumbai, Pune, and Delhi NCR led this quarterly recovery with Delhi NCR alone contributing 11,031 transactions. Notably, almost 29% of Q2 sales came from projects launched during the same quarter, marking the highest post-pandemic absorption rate of new launches.

Launches of Premium Homes Surge as Prices Climb

Even as overall new project launches slowed, developers clearly focused on the premium end of the spectrum. According to JLL, premium homes priced over ₹1 crore saw a 110% year-on-year increase in new launches during H1 2025.

• Kolkata led the launch momentum with over 105% growth in new units.
• Chennai posted a solid 35% rise, while Bengaluru grew by over 19%.
• Nationally, new supply stood at 1.54 lakh units in H1 2025.

At the same time, home prices across metros continued to rise. Delhi NCR saw the steepest hike with a 17% increase, followed by Bengaluru at 14%. These increases stem from both rising construction costs and unwavering buyer demand, particularly in the premium homes priced category.

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Expert Insights and Future Trends

According to Samantak Das, Chief Economist and Head of Research & REIS at JLL India, this sustained interest in high-value housing is not accidental. It reflects deeper structural shifts rising disposable incomes, greater financial stability, and a shift in consumer expectations.

He noted that while sales in the ₹1 crore and above segment grew 6% year-on-year, the sub-₹1 crore market took a significant hit. As more consumers seek value through design, space, and amenities, the demand for premium homes priced over ₹1 crore is expected to stay strong in the coming quarters.

Conclusion

The Indian housing market is undergoing a fundamental shift, with premium homes priced above ₹1 crore now becoming the new normal in urban home buying. The first half of 2025 has made it clear: buyers are willing to invest more for quality, comfort, and future-readiness.

As Bengaluru, Mumbai, and Pune continue to lead the charge and with developers responding by ramping up luxury offerings the market is poised for a future where premium living isn’t just a niche, but a dominant theme.

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