Rs 1.5-3 Crore Homes Lead India's Housing Market With 54 Per Cent Sales Growth: JLL

India's housing market has bounced back from last year's slowdown, but the recovery is not reaching every segment equally. Homes costing Rs 1 crore and above are finding buyers, while those looking for a house within a tighter budget are finding fewer options they can afford.

Residential sales across the top seven cities rose 6 per cent year-on-year (Y-o-Y) to 2,14,562 units between January and September 2026, against a 12 per cent decline in the same period last year, according to a report by JLL. Much of this improvement came from the premium housing market.

Homes priced above Rs 1 crore accounted for 72 per cent of all sales during the nine-month period. Their share was 62 per cent a year ago. Sales in this category grew 23 per cent, while the Rs 1.5-3 crore segment saw an even sharper increase of 54 per cent.

The story was quite different at the lower end of the market. Sales of homes priced below Rs 1 crore dropped 23 per cent. For buyers in this category, higher property prices have made the search increasingly difficult. Many are either reconsidering their budgets or looking at locations farther away from established residential areas.

There is also a change in what buyers are looking for. Larger homes, better amenities and projects by developers with a reliable delivery record are attracting greater interest. For those who can afford them, these features appear to matter as much as the location.

Bengaluru, Chennai Lead Sales Growth

The improvement in sales was visible across several cities, though the pace varied. Chennai recorded 22 per cent annual growth in sales in Q3 2026. It was followed by Bengaluru at 18 per cent and Hyderabad at 16 per cent.

On a quarter-on-quarter basis, sales across the seven markets rose 12 per cent to 76,181 units. Hyderabad recorded the biggest jump, with sales increasing 70 per cent. Kolkata followed with 28 per cent growth and Bengaluru with 13 per cent. Delhi-NCR and Mumbai were the only markets to report a decline, at 5 per cent and 2 per cent, respectively.

Bengaluru, Mumbai and Pune together accounted for 60 per cent of housing sales across the seven cities during the first nine months of the year.

Builders Increase Supply As Prices Climb

Developers are clearly betting on the demand for higher-priced homes. New launches across the seven markets increased 15 per cent year-on-year to 2,59,425 units during January-September 2026.

With launches rising 41 per cent during the first nine months of 2026, Bengaluru saw the biggest jump in new housing supply. Hyderabad and Mumbai also saw developers step up launches, with increases of 37 per cent and 24 per cent, respectively. In Q3 alone, 90,918 new units were launched across the seven cities, up 28 per cent from a year earlier.

Property prices, meanwhile, continued to move upwards. Bengaluru saw the sharpest rise, with capital values increasing 15 per cent year-on-year in Q3 2026.

Chennai and Kolkata followed with increases of 12 per cent and 11 per cent. Delhi-NCR saw prices rise 10 per cent, Mumbai 8 per cent and Pune 6 per cent.

Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head of Residential Services, India, JLL, said the Rs 1.5-3 crore category had been the strongest contributor to sales growth. Developers have increased launches in response, with the premium segment continuing to attract buyers.

Affordable Housing Faces A Tougher Market

Premium homes are expected to find buyers more easily in the months ahead. Those with the money to spend are still willing to pay more for extra space, better amenities and a good location. Cities such as Bengaluru, Hyderabad and Chennai are seeing this demand, with new job opportunities and infrastructure projects adding to their appeal.

It is, however, a different story for buyers looking for homes below Rs 1 crore. As prices rise, many are finding that the homes they could afford a few years ago are now beyond their reach. Some may put off buying, while others may have to look at smaller houses or move further away from the city to stay within budget.

The 15 per cent rise in the value of residential sales during the first nine months also reflects the growing contribution of expensive homes. In other words, the market is earning more from home sales, even as the increase in the number of homes sold remains relatively modest.

For now, India's housing recovery has a clear leader: the premium segment. Whether the lower-priced market can catch up will depend largely on how far home prices move ahead of household incomes.