Knight Frank India, in its latest report on India’s office and residential property market, has highlighted a significant shift in housing demand, with homes priced above Rs 10 million accounting for 50 per cent of total residential sales across the top eight cities in 2025. The findings underscore the growing dominance of premium housing in the country’s real estate landscape.Out of 348,247 residential units sold during the year, approximately 175,091 units were in the Rs 10 million-plus category, marking a 14 per cent year-on-year increase. The data reflects changing buyer preferences, with demand increasingly shifting toward higher-value homes even as overall sales volumes remained stable at elevated levels.In contrast, the sub-Rs 5 million segment recorded a sharp 17 per cent year-on-year decline, with sales dropping to 73,694 units in 2025. This category accounted for just 21 per cent of total transactions, down significantly from nearly 37 per cent in 2022, indicating a rapid structural transformation in the market. The mid-income segment, comprising homes priced between Rs 5 million and Rs 10 million, also saw an 8 per cent decline to 99,422 units, reflecting weakening demand in lower price brackets.Shishir Baijal, International Partner, Chairman and Managing Director at Knight Frank India, said: “The fact that homes priced above INR 1 crore now constitute half of total residential sales is a defining milestone for the sector. Demand is increasingly being led by financially secure end-users upgrading to better-quality homes.” He added that improved affordability, rising incomes and long-term urban confidence have encouraged buyers to move toward higher-value properties.The shift has also been supported by sustained price growth across major cities. Weighted average residential prices rose across leading markets in 2025, led by NCR with 19 per cent growth, followed by Hyderabad at 13 per cent, Bengaluru at 12 per cent and Mumbai at 7 per cent. A higher share of premium housing launches further reinforced this trend.Despite launches exceeding sales in some markets, unsold inventory remained stable at 509,815 units by the end of 2025, with a quarters-to-sell ratio of 5.8 quarters, indicating steady demand and disciplined supply. The report suggests premium housing will remain a key driver of India’s residential market in the coming years.