A new report reveals a strong shift in Indiaโs residential market, with luxury homes commanding a record-high market share and driving overall sales value, a trend set to reshape future development strategies.
The Indian real estate market is witnessing a luxury boom in 2025, with premium homes priced above โน1 crore capturing a majority market share, according to a JLL report. Find out what this means for developers, architects, and buyers.
Indian Real Estate Sees Surge in Demand for Luxury Homes
The first half of 2025 has been a landmark period for Indiaโs real estate sector, with a surprising but clear trend: the premium housing segment is now the driving force behind the market.
A report by real estate consultancy JLL highlights that homes priced at โน1 crore and above accounted for a massive 62% of all residential sales in the first six months of the year, a significant jump from 51% in the same period last year. This trend indicates a growing appetite for luxury living among affluent Indian homebuyers.
Whatโs Behind the Luxury Boom?
Several factors are contributing to this shift towards premium housing. According to Dr. Samantak Das, Chief Economist and Head of Research at JLL, this is a clear sign of โrising buyer affluence, evolving lifestyle aspirations, and a heightened demand for larger, premium living spaces.โ
Buyers are increasingly looking for homes that offer more than just a place to live; they want a complete lifestyle experience with top-notch amenities, better design, and more space. This trend is a wake-up call for developers and designers to focus on quality and innovation.
- Rising Incomes and Affluence: A growing segment of the population has the financial capacity to invest in high-value properties.
- Desire for Space: Post-pandemic, there is a greater emphasis on larger homes that can accommodate hybrid work models and provide dedicated spaces for recreation and family time.
- Focus on Amenities: Modern buyers are looking for integrated communities with features like gyms, swimming pools, parks, and high-tech security.
The Impact on the Market
The luxury boom has had a direct impact on pricing and new launches. While the total number of new launches has slowed down, developers are focusing their efforts on high-end and premium projects to align with the current demand. In the first half of 2025, launches of homes priced over โน1 crore surged by an impressive 110% compared to last year.
This focus on luxury is also leading to a widespread increase in property prices across major cities. Delhi-NCR, for instance, saw the highest year-on-year price growth at 17%, followed by Bengaluru at 14%. This widespread price growth is a result of higher construction costs and consistent buyer demand.
What This Means for the Industry
For architects and interior designers, this is an exciting time. The demand for luxury homes means a greater need for bespoke design, high-quality materials, and innovative architectural solutions. The focus is on creating spaces that are not just beautiful but also functional and sustainable.
Developers are now under pressure to deliver on the promises of luxury and provide a product that justifies the premium price tag. This trend is expected to continue, making the luxury segment a key focus area for the Indian real estate market in the coming years.
Source: The Times of India, โPremium housing market cornered 62% market share in 2025,โ published July 25, 2025.
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