India’s residential real estate market sent out a clear signal in 2025: buyers may be purchasing fewer homes, but they are spending significantly more on each transaction.
According to JLL Research, total housing sales across India’s top seven cities fell 11% year-on-year to 270,323 units in 2025, yet the market simultaneously witnessed a decisive shift toward premium housing. Apartments priced above ₹1 crore recorded a 6% year-on-year growth in unit sales, increasing their share of the market from 53% in 2024 to 63% in 2025.
This sharp divergence between volumes and value highlights a structural transformation underway in India’s housing market—one increasingly driven by premiumisation rather than mass demand.
Premium Homes Gain as Mass Housing Loses Ground
The most striking trend of 2025 was the contraction of the mass housing segment. Homes priced below ₹1 crore saw unit sales decline by 30%, with their market share shrinking from 47% in 2024 to just 37% in 2025.
In absolute terms:
- 99,265 sub-₹1 crore homes were sold in 2025
- 25,413 units below ₹50 lakh
- 73,852 units in the ₹50 lakh–₹1 crore range
In contrast, the ₹1.5–3 crore segment emerged as the fastest-growing category, recording a 19% year-on-year increase and accounting for 27% of total sales—up sharply from 20% a year earlier.
Higher ticket sizes also translated into stronger value growth. Despite the drop in unit sales, total residential sales value rose by around 11% year-on-year to approximately ₹5.57 lakh crore, underlining buyers’ willingness to pay premiums for quality, location, and branded developments.
City-wise Performance: Chennai Stands Out, Big Markets Moderate
Chennai: The Clear Outperformer
Chennai emerged as the standout residential market of 2025, registering 31% year-on-year growth to 14,837 units sold, defying the national slowdown. The city also recorded an exceptional 86% year-on-year jump in Q4 2025 sales, driven by rising preference for apartments over independent homes and strong uptake in premium projects.
Bengaluru: Volumes Dip, Value Holds
Bengaluru remained India’s largest residential market by volumes with 61,025 units sold, despite a 12% year-on-year decline. Importantly, the city led price appreciation, with capital values rising 13% annually in Q4 2025, reflecting sustained demand for premium housing despite moderation in sales.
Mumbai: Resilient Demand Amid Correction
Mumbai recorded 56,086 unit sales, down 15% year-on-year, yet continued to attract buyers in higher price brackets. Premiumisation remained evident, supported by limited land availability, redevelopment-driven supply, and steady end-user demand.
Delhi NCR: Sharp Volume Correction
Delhi NCR saw one of the steepest corrections, with sales falling 22% year-on-year to 38,981 units. However, the region also witnessed 13% annual price growth, indicating that premium developments continued to find takers even as overall volumes softened.
Pune: Relative Stability
Pune showed relative resilience, with sales declining marginally by 2% to 51,911 units. Strong employment fundamentals and steady mid-to-premium demand helped cushion the impact of broader market moderation.
Hyderabad and Kolkata: Diverging Paths
Hyderabad recorded 33,288 units, down 6% year-on-year, reflecting supply overhangs in certain micro-markets.
Kolkata, though smaller in scale, saw sales drop 21% to 14,195 units, even as premium launches gained traction.
Developers Double Down on Premium Supply
Supply-side trends reinforced the premiumisation narrative. While overall residential launches declined 3% year-on-year to 293,079 units, premium housing launches grew 6%, as developers prioritised higher-margin projects amid rising construction costs.
- Chennai led new launches, recording 45% year-on-year growth
- Kolkata, Pune and Chennai posted double-digit supply growth
- Mumbai and Hyderabad saw notable pullbacks in new launches
New launches accounted for 23% of annual sales, signalling sustained buyer confidence despite market adjustments.
Prices Rise Across Cities Despite Volume Decline
Home prices continued their upward trajectory across all major markets in 2025:
- Chennai, Bengaluru, Delhi NCR: 13% annual price growth
- Kolkata: 12%
- Other cities recorded 6–10% appreciation
Elevated construction costs, controlled inventory, and sustained demand for Grade A projects kept prices firm, reinforcing the shift toward value-driven transactions.
Outlook: Premiumisation Here to Stay
JLL expects India’s housing market to remain structurally strong despite short-term volume adjustments. Recent repo rate cuts, improved credit access, and stable employment conditions are likely to support demand, particularly in premium and upper mid-income segments.
Large, listed developers are expected to gain further market share through brand strength, execution capabilities, and strategic diversification across price segments—cementing premium housing as the central growth engine of India’s residential real estate market.
Also Read: Which City Sold the highest number of Homes in 2021?
