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

30 Oct 2025 CW Team

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.

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