The housing market in India showed a clear trend towards premium properties, with apartments priced above Rs 1 crore increasing their market share to 63% in 2025 from 53% in 2024. Buyers are increasingly opting for value-driven purchases despite an overall decline in sales volume, as highlighted in a report by JLL. Particularly, the Rs 1.5-Rs 3.0 crore segment witnessed a significant 19% surge in demand compared to the previous year.
Chennai stood out as a top performer, experiencing a remarkable 31% year-on-year growth, resulting in 14,837 units being sold. While most cities witnessed a decrease in sales, Bengaluru, Mumbai, and Pune each exceeded 50,000 units in sales, collectively accounting for 63% of the total annual sales. These cities showcased market resilience during periods of moderation, backed by strong employment opportunities, well-established infrastructure, high purchasing power, and quality lifestyle offerings, according to the report.
In the fourth quarter of 2025, there were varied results at the city level, with Chennai and Delhi NCR maintaining their momentum in housing sales, led by Chennai’s impressive 86% year-on-year growth. Across India’s major cities, home prices continued their upward trajectory throughout 2025, with annual price appreciation ranging from 6% to 13% in different markets. Chennai, Bengaluru, and Delhi-NCR led the price growth at 13% each, followed by Kolkata at 12%, as per the report.
Despite temporary adjustments in sales volume, India’s residential market remains poised for healthy sales, with no significant structural corrections anticipated. The report predicts that home prices will continue to rise due to strong demand, limited inventory, and developers’ increased pricing power in the premium segment, although growth rates may moderate in the future. Siva Krishnan, Senior Managing Director at JLL, mentioned that new launches constituted 23% of the total annual sales, indicating buyer confidence even amidst a softer market. Developers strategically focused on high-margin projects while being selective in mid-range launches based on local market trends.
