India's Housing Market Sees Shift Towards Premium Residences Amid Pandemic

India's housing market is experiencing a transformation, with a growing share of premium residences being sought by homebuyers. This trend is driven by increased demand for larger properties in favorable locations, backed by a buoyant stock market, rising incomes, and affordable loans. Developers are focusing on upscale offerings in prime urban centers, while the supply of affordable dwellings has reduced. Experts attribute this shift to changing consumer priorities, rising aspirations, and a positive economic environment.

Key Takeaways:

• The share of premium residences, priced above Rs 1 crore, has increased to nearly half of all residential deals across top eight cities in the first half of 2025, according to Knight Frank India.
• Over 83,000 of the 170,000 homes sold during this period were in the high-value bracket, with sales in the Rs 2050 crore segment surging nearly 30% year-on-year.
• The premiumisation trend is most pronounced in markets like NCR, Bengaluru, and Mumbai, leading the high-ticket segment by volume.
• The affordable housing category, homes priced below Rs 50 lakh, saw a decline in both sales and supply in the first half of 2025, falling by 18% on-year.
• New launches in the affordable housing segment fell over 30%, indicating a growing gap in the markets most price-sensitive category.
• Average residential prices rose in all major cities, led by NCR and Bengaluru, where prices rose 14%, while Mumbai saw an 8% increase.

Statistics:

• 170,000 homes sold in the first half of 2025 across top eight cities.
• 83,000 homes sold in the high-value bracket (above Rs 1 crore) in the first half of 2025.
• Sales in the Rs 2050 crore segment surged nearly 30% year-on-year in the first half of 2025.
• Price growth in NCR and Bengaluru: 14%.
• Price growth in Hyderabad: 11%.
• Price growth in Mumbai: 8%.

Sources:

• Knight Frank India
• Niranjan Hiranandani, chairman, Naredco
• Shishir Baijal, CMD, Knight Frank India