Homes priced between ₹2 crore and ₹5 crore are now India's fastest-growing housing segment, as buyers trade up and developers pivot away from affordable launches.
Residential properties priced between ₹2 crore and ₹5 crore are rapidly emerging as one of the most active segments in India's housing market, reflecting a clear shift in buyer preferences towards premium homes and a parallel strategic pivot by developers towards higher-margin projects. According to data from JLL India, the premium and upper mid-premium housing market is gaining momentum as homebuyers move up from the affordable category and developers increasingly focus on projects that offer stronger profitability and sustained demand.
The data shows that apartments priced at ₹1 crore and above accounted for 62% of all housing sales between January and September 2025, compared to 52% during the same period last year. This sharp rise highlights a structural transformation in the residential market, where value-driven buying is becoming more prominent and premium housing is taking a larger share of total sales.
Among all price categories, the ₹1.5 crore to ₹3 crore segment has emerged as the single largest contributor to market activity, recording 10% year-on-year growth during the first nine months of 2025. The ₹3 crore to ₹5 crore segment also posted growth of 3%, while homes priced above ₹5 crore registered a 1% increase. In contrast, the affordable and lower-ticket market has seen a noticeable slowdown. Homes priced below ₹1 crore witnessed a 30% drop in sales, with their share in overall transactions falling from 48% in 2024 to 38% in 2025.
According to Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, the January–September 2025 period has clearly reflected a move towards a value-driven housing market, where premium housing demand continues to support overall sales despite a broader slowdown in transaction volumes. The housing market recorded 2.02 lakh apartment sales during the first nine months of 2025, down 12% year-on-year, but the premium segment still managed to grow by 4% during the same period, showing greater resilience than the mass market.
The demand for homes in the ₹2 crore to ₹5 crore bracket has become increasingly visible across major listed developers. Sobha reported that homes in this price band now account for a growing share of its total sales in H1FY26, contributing more than 65% in value terms. The company posted its highest-ever half-yearly sales of ₹3,981 crore, with Bengaluru and NCR together contributing 86% of total sales. Sobha Managing Director Jagadish Nangineni said that steady demand for luxury and premium real estate in a growing economy continues to support the company's sales momentum.
Other major developers are reporting a similar trend. Prestige Estates said in its Q1FY26 business update that it continues to see robust demand in mid-to-premium housing projects priced between ₹2 crore and ₹5 crore. DLF, which recorded strong new sales bookings in the same quarter, said demand remains particularly strong for its Gurugram projects in this price category. The company's Privana and Arbour developments in Gurugram collectively contributed more than ₹5,600 crore worth of bookings in Q1FY25 and have continued to witness healthy traction through FY26.
In Mumbai, Oberoi Realty has also seen sustained demand in the premium housing segment. The developer cited steady sales in projects such as Sky City and 360 West, where homes are priced in the ₹3 crore to ₹5 crore and above category. Chairman Vikas Oberoi told analysts after the company's Q2FY26 earnings that demand for quality luxury housing remains healthy despite recent price hikes. According to him, limited supply and a preference for differentiated products are helping sustain strong buyer interest in this segment.
Developers have responded to this shift in demand by moderating new launches in the affordable category and focusing more on premium supply. Residential launches during January–September 2025 stood at 2.25 lakh units, which was 1% lower year-on-year. However, the supply of homes priced above ₹1 crore grew by 5%, reflecting where developers see stronger absorption and better returns.
As Siva Krishnan, Senior Managing Director and Head – Residential Services, India, JLL, pointed out, while premium housing continues to witness strong demand, developers remain cautious about launching new projects in the affordable and mid-range segments where absorption has been slower. The result is a housing market increasingly led by aspirational and upgrade-driven demand, with the ₹2–5 crore segment now becoming a key engine of growth for India's residential real estate sector.
