Premium Housing Demand Rises Despite 12% Dip in Overall Residential Sales in 2025: JLL
Real Estate

Premium Housing Demand Rises Despite 12% Dip in Overall Residential Sales in 2025: JLL

India’s residential property market witnessed a shift toward premium housing in the first nine months of 2025, even as total sales volumes moderated, according to JLL India’s latest residential market update.

While overall home sales fell 12 per cent year-on-year (Y-o-Y) to 202,756 units during January–September 2025, the premium housing segment (priced at Rs 10 million and above) registered a 4 per cent growth, led by strong demand in the Rs 10.5–30 million price band — which grew nearly 10 per cent over the same period last year.

The slowdown in total volumes was attributed to sustained high property prices, seasonal monsoon effects, a pre-festive demand lull, and macroeconomic uncertainty. However, resilient demand in the upper-income segment underscored the market’s structural strength and a growing preference for value-driven, high-quality housing.

Conversely, the sub-Rs 10 million category saw a sharp 30 per cent Y-o-Y decline, indicating a pronounced shift away from mass housing toward premium and luxury segments.

India’s top seven cities recorded a 9 per cent Y-o-Y and 2 per cent quarter-on-quarter (Q-o-Q) dip in sales during Q3 2025, totaling 67,980 units. Despite the overall moderation, Pune (14 per cent) and Chennai (13 per cent) posted robust Y-o-Y growth.

Bengaluru, Mumbai, and Pune remained the strongest-performing markets, together accounting for 63 per cent of total Q3 sales, up from 60 per cent in Q3 2024. Within the premium segment, Rs 10.5–30 million homes saw 14 per cent Y-o-Y growth, while demand in the sub-Rs 10 million bracket fell 23 per cent Y-o-Y.

“January–September 2025 showed a shift toward a value-driven market, with premium housing demand driving overall sales despite a 12 per cent annual drop in total units sold,” said Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. “Interestingly, newly launched projects continued to perform well — about 24 per cent of sales during this period were from properties launched in 2025, slightly higher than last year’s share.”

Developers maintained a cautious approach toward mid-range and affordable housing projects, while continuing to invest in premium developments.

In Q3 2025, around 70,915 new homes were launched, taking the total for the first nine months to 225,001 units, only 1 per cent lower Y-o-Y. Cities such as Kolkata, Chennai, Pune, and Bengaluru reported strong annual growth in new launches.

“While premium housing witnessed sustained demand, developers moderated new mid-range and affordable launches due to sluggish absorption,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head – Residential Services, India, JLL. “Controlled launches have helped stabilize inventory and strengthen market absorption, reflecting a maturing residential market.”

Home prices across the seven major cities continued to climb in Q3 2025, rising between 6 per cent and 16 per cent annually.

  • Kolkata led with 16 per cent growth,
  • Chennai followed at 14 per cent,
  • Delhi NCR and Bengaluru each recorded 13 per cent growth.

The broad-based increase was driven by elevated construction costs, developer focus on high-margin projects, and robust end-user demand.

India’s residential property market witnessed a shift toward premium housing in the first nine months of 2025, even as total sales volumes moderated, according to JLL India’s latest residential market update.While overall home sales fell 12 per cent year-on-year (Y-o-Y) to 202,756 units during January–September 2025, the premium housing segment (priced at Rs 10 million and above) registered a 4 per cent growth, led by strong demand in the Rs 10.5–30 million price band — which grew nearly 10 per cent over the same period last year.The slowdown in total volumes was attributed to sustained high property prices, seasonal monsoon effects, a pre-festive demand lull, and macroeconomic uncertainty. However, resilient demand in the upper-income segment underscored the market’s structural strength and a growing preference for value-driven, high-quality housing.Conversely, the sub-Rs 10 million category saw a sharp 30 per cent Y-o-Y decline, indicating a pronounced shift away from mass housing toward premium and luxury segments.India’s top seven cities recorded a 9 per cent Y-o-Y and 2 per cent quarter-on-quarter (Q-o-Q) dip in sales during Q3 2025, totaling 67,980 units. Despite the overall moderation, Pune (14 per cent) and Chennai (13 per cent) posted robust Y-o-Y growth.Bengaluru, Mumbai, and Pune remained the strongest-performing markets, together accounting for 63 per cent of total Q3 sales, up from 60 per cent in Q3 2024. Within the premium segment, Rs 10.5–30 million homes saw 14 per cent Y-o-Y growth, while demand in the sub-Rs 10 million bracket fell 23 per cent Y-o-Y.“January–September 2025 showed a shift toward a value-driven market, with premium housing demand driving overall sales despite a 12 per cent annual drop in total units sold,” said Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. “Interestingly, newly launched projects continued to perform well — about 24 per cent of sales during this period were from properties launched in 2025, slightly higher than last year’s share.”Developers maintained a cautious approach toward mid-range and affordable housing projects, while continuing to invest in premium developments.In Q3 2025, around 70,915 new homes were launched, taking the total for the first nine months to 225,001 units, only 1 per cent lower Y-o-Y. Cities such as Kolkata, Chennai, Pune, and Bengaluru reported strong annual growth in new launches.“While premium housing witnessed sustained demand, developers moderated new mid-range and affordable launches due to sluggish absorption,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head – Residential Services, India, JLL. “Controlled launches have helped stabilize inventory and strengthen market absorption, reflecting a maturing residential market.”Home prices across the seven major cities continued to climb in Q3 2025, rising between 6 per cent and 16 per cent annually.Kolkata led with 16 per cent growth,Chennai followed at 14 per cent,Delhi NCR and Bengaluru each recorded 13 per cent growth.The broad-based increase was driven by elevated construction costs, developer focus on high-margin projects, and robust end-user demand.

Next Story
Real Estate

The Redevelopment Imperative

Nearly 70 per cent of India’s GDP is generated in cities, yet India’s urban core is ageing faster than it is being renewed. Mumbai, with virtually no greenfield land left, is now dependent almost entirely on redevelopment to sustain housing supply. Urban population growth – from 54.5 crore today to an estimated 60 crore within five years – has further intensified pressure on existing neighbourhoods.As highlighted at the Mumbai Redevelopment Summit, unchecked urban sprawl is no longer viable. According to ISRO estimates (2022), India consumes nearly 1.5 million hectare of farmland annua..

Next Story
Equipment

Building Greener, Building Faster

The 13th edition of Excon 2025, South Asia’s largest construction equipment exhibition, concluded on a high note at the Bangalore International Exhibition Centre (BIEC), reaffirming its stature as a global platform shaping the future of India’s infrastructure and construction ecosystem. Organised by the Confederation of Indian Industry (CII), the five-day event, held from December 9 to 13, 2025, brought together policymakers, manufacturers, contractors, financiers, technology providers and global stakeholders under one roof.Spread across an expansive 3.5 million sq ft, Excon 2025 hosted ov..

Next Story
Infrastructure Transport

Mahalaxmi Railway Land Fetches Record Rs 22.50 Bn in RLDA Auction

The Railway Land Development Authority (RLDA) has received its highest-ever bid of Rs 22.50 billion for a railway land parcel at Mahalaxmi in south Mumbai, setting a new benchmark for long-term lease auctions in the city’s real estate market.The land parcel, spread over about 2.67 acres or 10,801 square metres, was offered on a revenue-share model with a lease tenure of 99 years. The reserve price for the plot was fixed at Rs 9.93 billion, while the permissible floor space index (FSI) stands at 4.05, making it one of the most attractive redevelopment opportunities in a prime urban location.T..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App