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?

The post Fewer Homes Sold, More Money Spent: ₹1 Crore+ Apartments Drive India’s Housing Market in 2025 appeared first on Square Feat India.

Affordable housing, once a backbone of India’s housing market, has seen its launch share shrink from 40% in 2019 to just 12% in H1 2025, while its sales share dropped from 38% to 18%.

What’s Driving Up Construction Costs?

The cost of building homes has risen sharply across India’s top cities. Here’s why:

• Raw Materials: Cement (+30% in 5 years), Steel (+57%), Copper (+91%), Aluminium (+80%).
• Labour: Wages up 150% since 2019 and 25% in the last year alone.
• Other Costs: Higher fuel, compliance, and approval expenses.

City-Wise Construction Costs (2025 Estimates)

Impact on Affordable Housing Buyers

For affordable homebuyers, even a ₹500–800/sq. ft increase means ₹5–8 lakh more on a 1,000 sq. ft flat — a deal-breaker for many families. Developers, facing thin margins, have slowed down launches, leading to an affordable housing crisis.

By contrast, mid-range and luxury projects can absorb cost hikes more easily. Luxury housing buyers are less price-sensitive, while affordable buyers often drop out entirely.

Tariffs & GST: Will They Help or Hurt?

• Tariffs: A proposed 25–50% tariff on steel, aluminium, and imported materials could push costs 2–5% higher, worsening affordability.
• GST Reforms: The government’s move to cut GST on cement from 28% to 18% could reduce home prices by 2–4% in affordable housing and 2–3% in mid-range housing — modest but meaningful relief.

Segment-Specific Trends

• Affordable Housing: From 40% share in 2019 to just 12% in H1 2025 (supply), sales also down to 18%.
• Mid-Range: Buyers stretched but still present; prices rising 9–12% annually.
• Luxury: Least affected — buyers accept higher costs for exclusivity.

What This Means for Homebuyers

For India’s middle- and lower-income households, the report signals a grim reality: affordable housing is fast disappearing. With costs rising and supply shrinking, buying early may be the only way to lock in a home before prices climb further.

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Delhi NCR emerged as the undisputed leader, accounting for 65% of all luxury sales across the top seven Indian cities. Within NCR, Gurugram dominated with a staggering 91% share of sales, cementing its position as India’s luxury housing hub.

Key Numbers — Luxury Housing in NCR

Source: JLL Research

Hotspots Driving the Boom

• Southern Peripheral Road (SPR): 39% of Gurugram’s luxury sales in H1 2025
• Dwarka Expressway + SPR: Together form 61% of Gurugram’s luxury market
• Golf Course Road: Stable demand, but limited fresh inventory in ₹5 crore+ bracket
• Since 2020, 22,000 luxury units launched in NCR, with 89% in Gurugram

The recent completion of Dwarka Expressway has driven price appreciation, pushing many premium projects into the luxury bracket. Infrastructure upgrades such as the upcoming Gurugram Metro line are expected to further boost demand.

Developer Sentiment & Buyer Trends

JLL notes that while NCR’s overall housing sales dipped 23% YoY across all ticket sizes, the luxury segment was resilient — now representing over a quarter (27%) of the total market, up from just 12% in 2023.

“Gurugram has firmly established itself as the epicentre of luxury real estate in India… The SPR and Dwarka Expressway corridors are now particular hotspots,”
— Manish Aggarwal, Senior MD (North & East), JLL

Developers are banking on festive season demand, tamed inflation, and rising disposable incomes to sustain the momentum.

Outlook
With strong infrastructure growth, employment opportunities, and an appetite for high-end living, Delhi NCR is set to maintain its lead in India’s luxury housing market in the near to mid-term.

Also Read: Luxury homes sales in Mumbai have risen 50% 

The post Luxury Housing Defies Slowdown: NCR Sales Up 9% in H1 2025, Gurugram Commands 91% Share appeared first on Square Feat India.

Among the major cities, Delhi NCR recorded the highest price growth at 31% YoY, followed by Bengaluru at 23%. The luxury and ultra-luxury segments, in particular, have gained significant traction, and this trend is expected to continue into 2025.

Housing Prices on a Steady Rise

Data from Liases Foras and Colliers indicate that all eight major cities recorded an increase in residential prices in Q4 2024. Delhi NCR witnessed the steepest rise, with Dwarka Expressway leading at a 58% annual increase, followed by Greater Noida at 52% YoY growth. Bengaluru also experienced significant growth, particularly in its Periphery & Outer West micro-markets, where ready-to-move-in units saw strong demand.

Pan India Residential Price Trends (INR/sq ft) – Q4 2024:

Decline in Unsold Inventory

For the fourth consecutive quarter, overall unsold inventory levels declined, dropping 5% YoY by the end of Q4 2024. Notably, Pune saw the highest decline at 14%, followed by Hyderabad at 13%. The Mumbai Metropolitan Region (MMR) accounted for nearly 40% of the total unsold inventory, but for the first time in three years, it saw a reduction to 390,000 units.

Market Insights from Industry Experts

According to Boman Irani, President of CREDAI National, “The sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades. With evolving consumer aspirations, we are witnessing increased demand for larger homes, better amenities, and integrated living spaces.”

Badal Yagnik, CEO of Colliers India, added, “Luxury and ultra-luxury housing segments have been key drivers of price growth. With potential reductions in interest rates and government initiatives to support affordable housing, demand across categories is expected to remain strong in 2025.”

Future Outlook

The residential market is poised for continued growth in 2025. The combination of infrastructure developments, evolving buyer preferences, and a strong luxury housing market is expected to keep prices on an upward trajectory. Additionally, a potential reduction in benchmark lending rates could further boost affordability, making it an opportune time for homebuyers to invest in real estate.

With steady demand, declining unsold inventory, and rising prices, India’s real estate market remains robust, signaling a promising year ahead for the housing sector.

Also Read: 2024 Warehousing Trends

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Despite a record surge in housing sales over the past two years, demand is now stabilizing. However, experts predict strong residential activity will continue, potentially closing 2024 on a high note. Housing prices in cities like Delhi NCR and Bengaluru have seen significant hikes, reflecting consumer preference for larger, more spacious homes. Delhi NCR, in particular, saw a remarkable 32% YoY increase, driven by the launch of luxury and ultra-luxury projects, with areas like Dwarka Expressway and Golf Course Extension seeing price hikes of more than 50%.

Drop in Unsold Inventory
Unsold inventory has continued to decline for the third consecutive quarter, with a reduction in stock across most cities. As of September 2024, unsold inventory stood at over 10 lakh units across the top eight cities, with MMR (Mumbai Metropolitan Region) holding the largest share of 40%. Hyderabad saw a modest decline in unsold units, while Chennai and Kolkata also reported a drop in inventory levels. Pune experienced the largest decrease in unsold inventory, with a 13% YoY reduction.

Outlook for the Housing Market
While the market is gradually stabilizing, the outlook for residential properties remains positive. Developers are recalibrating their strategies, focusing on price-sensitive segments, and offering compact units. The expectation of potential repo rate cuts and easing monetary policies is expected to bring relief to homebuyers in the near future. Additionally, flexible payment plans and incentives are helping maintain sales momentum.

Real Estate Price Trends in Major Cities
Here’s a snapshot of the average housing prices in the top eight cities for Q3 2024:

The ongoing rise in prices, particularly in luxury housing segments, highlights strong demand from aspirational homebuyers. As developers focus on larger homes and premium offerings, they are addressing market dynamics that reflect current consumer preferences.

Developer Strategies and Market Trends
With an eye on the luxury and ultra-luxury segments, developers are adjusting their strategies based on shifting demand. In cities like Bengaluru and Delhi NCR, large, spacious units, especially 3-4 BHK configurations, have seen price hikes of up to 26% YoY during Q3 2024. While affordable housing inventory remains high, new launches are largely focused on the premium end of the market.

The overall outlook for the housing sector remains strong, supported by positive consumer sentiment, steady demand, and the anticipation of financial relief through policy changes.

Also Read: MahaRERA Invites Objections to De-Registration of Macrotech and Raheja Projects Along with 17 Others

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