Luxury Housing Continues To Thrive Despite Broader Market Slowdown, Says JLL Report

India’s premium housing market continues to demonstrate remarkable resilience even as overall residential sales show signs of moderation. There is also a growing preference for larger and higher-value homes across India, signalling a shift from volume-driven growth to value-led expansion, according to a recent report by JLL.

Demand For Premium Homes Remain Strong

While total housing sales across India declined by 11 per cent on an annual basis to 270,323 units in 2025, demand for premium homes priced above Rs 1 crore has remained strong. Sales in this segment rose by 6 per cent during the year, underscoring buyers’ willingness to invest in quality residences despite broader market headwinds.

The report said that the residential market has been witnessing a trend of “premiumisation” since 2023. Homes priced above Rs 1 crore accounted for 46 per cent of total apartment sales in 2023. Their share increased to 53 per cent in 2024 which further climbed to 63 per cent in 2025. This showed a significant transformation in buyer preferences, the report added.

The value of residential sales has continued to rise despite lower transaction volumes. Pan-India residential sales value increased by 11 per cent to around Rs 5.60 lakh crore in 2025. After registering 19 per cent growth in 2023 and an impressive 60 per cent growth in 2024, the continued expansion indicates that developers’ focus on premium projects is paying off as consumers increasingly seek better amenities, larger spaces and superior construction quality.

Delhi-NCR Emerges As Foremost Luxury Housing Hub

Among major cities, Bengaluru has emerged as a key driver of premiumisation. The share of premium housing in the city rose sharply from 35 per cent in 2023 to 72 per cent in 2025, this resulted in 46 per cent increase in sales value.

However, the Delhi-National Capital Region (Delhi-NCR) strengthened its position as the country’s foremost luxury housing hub, with premium properties accounting for 92 per cent of total sales in 2025 despite a decline in overall volumes.

Mumbai also displayed resilience, with the premium segment’s share rising from 59 per cent in 2023 to 64 per cent in 2025. Hyderabad’s premium housing share increased to 82 per cent, supported by the city’s thriving technology sector.

Meanwhile, Chennai recorded robust growth, aided by rising demand and a 13 per cent increase in prices. Pune and Kolkata also witnessed steady premiumisation trends.

The report further said that recent repo rate cuts are expected to improve home loan affordability and support a recovery in housing volumes. The report said that India’s residential sector remains fundamentally strong, with premiumisation and quality emerging as the key drivers of future growth.