Luxury Housing Boom: Premium Apartments Defy India's Real Estate Slump

This increased contribution was primarily driven by 10 per cent growth in demand for the Rs 1.5 to 3 crore housing segment, according to the report from commercial real estate company JLL India.

While premium homes gained market share in year-to-date (YTD) sales till September, the share of apartments priced under Rs 1 crore dropped from 48 per cent to 38 per cent compared to the same period last year.

Bengaluru, Mumbai, and Pune accounted for over 60 per cent share in residential sales volume across India's top seven cities during January-September 2025.

The total residential sales dropped 12 per cent Y-o-Y to 2,02,756 units during January-September 2025 period due to sustained high property prices, seasonal monsoon impacts, and a pre-festive lull in housing demand.

The Indian housing market, however, underwent recalibration while maintaining strong underlying fundamentals, as evident from increasing sales in the premium housing segment, the report noted.

New launches of homes priced over Rs 1 crore surged by 5 per cent, the report said, adding that a marginal Y-o-Y decline was noted in overall year-to-date project launches until September.

Home prices in India's seven major cities maintained their upward trajectory in Q3 2025, posting annual increases ranging from 6 per cent to 16 per cent. Kolkata topped the list with 16 per cent growth, followed by Chennai at 14 per cent. Delhi NCR and Bengaluru recorded 13 per cent price growth, the report noted.

JLL India forecasted that apartment prices will keep rising due to strong luxury demand, low inventory, and developers' pricing power, even as sales moderate.

- IANS