Premium Homes Lead The Race As Festive Buying Season Approaches

With sales of homes in the Rs 2 crore - 5 crore bracket rising nearly 20 per cent in the first nine months of 2026, Gurugram is emerging as a key beneficiary of buyers’ growing appetite for space, better amenities and well-connected locations. Developers selling homes priced at Rs 2 crore and above have ample reason to be optimistic this festive season. While overall housing sales have remained largely flat, demand for premium homes continues to grow, suggesting that buyers willing to spend more are keeping the market moving.

Knight Frank India’s January-September report, released recently, found that sales of homes priced at Rs 2 crore - 5 crore rose 19.40 per cent year-on-year (y-o-y) to 51,501 units across eight cities, the fastest growth among the major price categories. Overall housing sales in these markets stood at 258,238 units, broadly unchanged from a year earlier. 

The picture was more mixed in Delhi-National Capital Region (Delhi-NCR), where sales fell 11 per cent to 35,574 units, even as demand shifted towards higher-priced homes.

Anarock’s numbers also point to a steady market. Across seven cities, housing sales rose to 100,220 units in July-September, from 97,080 in the same period of 2025.

For developers, the timing of the festive season offers another reason to hope for stronger sales. An additional lunar month, Adhik Maas, has pushed Diwali to November 8 this year. Dussehra falls on October 20 and Dhanteras on November 6, extending the period during which developers can attract prospective buyers.

For a family considering a home worth Rs 4 crore or more, the decision rarely comes after a single site visit. Location, layout, amenities, and the views of different family members all matter. A longer festive buying window could give developers more time to convert enquiries into bookings.

Why Gurugram Is Attracting Big-Ticket Buyers

Gurugram has emerged as one of the biggest beneficiaries of the shift towards premium and luxury housing. A report by India Sotheby’s International Realty and CRE Matrix found that 1,494 homes priced at Rs 10 crore and above were sold in the city in 2025, nearly three times the 519 units sold in 2024.

The combined value of these transactions stood at Rs 24,120 crore, ahead of Mumbai’s Rs 21,902 crore in the same price category.

Prices have risen alongside demand. Anarock puts Gurugram’s average residential price at Rs 13,350 per sq ft in the first half of 2026. Across Delhi-NCR, average primary-market prices rose 12 per cent in the September quarter to Rs 9,980 per sq ft, the sharpest increase among the seven cities tracked by the consultant.

The appeal is not just about larger homes or premium amenities. Improved connectivity, new residential developments, and the availability of larger-format apartments have helped parts of Gurugram attract buyers looking for an upgrade.

“We are witnessing a strong response to our Gurugram projects as homebuyers increasingly make considered property decisions during the festive season,” says Kalyan Chakrabarti, CEO, Emaar India.

He says buyers in the Rs 2 crore - 5 crore segment are looking beyond the home itself, paying greater attention to spacious layouts, amenities, privacy and the overall living environment. Connectivity, quality of life and the potential for long-term value are also influencing their decisions.

How New Road Corridors Have Changed The Market

Two stretches have played a significant role in Gurugram’s property market: the Dwarka Expressway and the Southern Peripheral Road (SPR). Along the Dwarka Expressway, average residential prices rose from around Rs 6,032 per sq ft in 2021 to Rs 14,180 per sq ft in the first half of 2026, according to Anarock. That is an increase of about 135 per cent, taking prices well above their earlier levels.

The corridor has also seen a sharp rise in high-value transactions. Sales of homes priced at Rs 10 crore and above along the stretch jumped from Rs 383 crore in 2024 to Rs 8,347 crore in 2025, according to the India Sotheby’s International Realty-CRE Matrix report.

SPR, which connects Golf Course Extension Road with Sohna Road and NH-48, has also become a major residential market. JLL found that it accounted for 39 per cent of Gurugram’s luxury housing sales in the first half of 2025. The SPR and Dwarka Expressway together accounted for 61 per cent.

Square Yards estimates the average residential price along SPR at around Rs 16,249 per sq ft, up 18.4 per cent in a year. These corridors have benefited from improving connectivity and a growing supply of premium housing. For buyers, they offer alternatives to established locations, although the price of entry has risen considerably in recent years.

Bigger Homes, Longer-Term Decisions

The demand for premium housing also reflects a change in what buyers want from their homes. Larger living areas, space for working from home, privacy and access to greenery are increasingly part of the decision, alongside location and price.

Anarock’s consumer sentiment survey for the first half of 2026, which covered 8,320 respondents across 14 cities, found that 53 per cent of Delhi-NCR respondents preferred a three-bedroom hall-kitchen (3BHK) home. The proportion of respondents nationally looking for four-bedroom homes or larger rose to around 5 per cent, from 3 per cent two years earlier. Another 27 per cent were considering homes priced above Rs 1.5 crore.

Amar Sarin, managing director and CEO of TARC says that buyers are increasingly looking for homes that can accommodate changing family needs, work arrangements and lifestyle preferences.

“Homebuyers today are looking beyond size and specifications, seeking dedicated spaces for work, play and recreation, along with natural light, ventilation and greenery,” he says.

Sarin adds that privacy, wellness and flexible spaces are becoming important considerations, particularly in the premium and luxury segments. Developers are responding with larger residences and designs that make better use of natural light, ventilation and open space.

The financial position of some buyers may also be helping. Monthly systematic investment plan (SIP) contributions reached a record Rs 32,297 crore in August, according to the Association of Mutual Funds in India (AMFI). Buyers who purchased homes several years ago may also be able to use the appreciation in their existing properties to fund an upgrade, although this will depend on their individual finances.

Interest Rates Matter, But Are Not The Only Consideration

The Reserve Bank of India’s October 7 policy raised the repo rate by 25 basis points (bps) to 5.50 per cent.

For buyers at the higher end of the market, a modest change in borrowing costs may not be the deciding factor, particularly when a substantial portion of the purchase is funded through their own money. Confidence in the economy, the quality of the property and the prospect of holding it over the long term can carry considerable weight.

“At the Rs 5 crore level, most buyers are putting in a big chunk of their own money. A quarter-point change in the loan rate isn’t what decides it for them,” says Sanam Bakshi, director, Central Park.

Bakshi says buyers are increasingly asking for fewer homes per acre, larger living rooms, adequate green spaces and properties they can move into without waiting for construction to finish. The festive period often provides the occasion to complete a purchase that has been under consideration for some time.

Knight Frank’s assessment also points to a more discerning market, in which the quality and suitability of available homes matter as much as demand. For developers, that means a festive offer or a favourable buying date may help, but the property itself still has to meet buyers’ expectations.

Anarock expects the festive season to build on the momentum seen in the September quarter. Whether that translates into a stronger run of bookings should become clearer around Dhanteras and Diwali, when many prospective buyers will decide whether to take the plunge.