Amidst significant growth in residential demand and with rise in home purchase affordability, the housing market has seen the trend of premiumisation over the last year which is likely to continue in 2025.

A latest JLL India report says that apartments in top 7 cities, valued at over INR 1 crore have topped 50% in record sales. These apartments have recorded 30% YoY growth. The YoY growth in demand for INR 3-5 crore segment stood at 86% while the homes costing above INR 5 crore, witnessed 80% YoY demand growth.

According to Dr Samanta Das, Chief Economist and Head of Research and REIS, India, JLL, amid higher willingness to pay for quality homes and rising property prices, for the first time ever, apartments above one crore rupees accounted for more than 50% share in annual sales. This has been driven by rise in high-net-worth individuals, increasing disposable income levels and evolving buyer preference for bigger, tech-enabled and future-ready homes.

Rise in demand for high-value homes 

Source: Real Estate Intelligence Service (REIS), JLL Research

Record high new launches contributed to growth in sales. Around 302,000 housing units got launched during 2024, the highest ever annual residential supply across top 7 cities.  Bengaluru and Hyderabad led annual launches with 60% share.  Residential supply during 2024 kept pace with sales, surpassing 3 lakh units’ mark.

Driven by rising demand for high-end housing, developers have been focusing on launch of premium and luxury segment projects, as evident from a 101% and 68% Y-o-Y surge in their launches respectively, according to Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) , Head-Residential Services, India, JLL .  

Rising sales traction has resulted in a Y-O-Y decline in the months to liquidate unsold inventory, which dropped from 26 months in Q4 2023 to 22 months by end 2024. Around 85-90% of total annual sales during 2024 being recorded in under-construction projects speaks of strong buyer confidence even in projects in their early stages and has contributed to the decline in months to liquidate the unsold inventory. 

Till its last quarter, the year 2024 witnessed residential price growth in the top seven cities of Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata, with Y-o-Y price increase ranging from around 5% to 20%. Delhi NCR recorded the highest price increase of around 20% followed by Bengaluru with a significant hike of approximately 14%. Chennai, Hyderabad, and Kolkata too witnessed around 10% Y-o-Y growth in residential capital values.  

Looking Ahead: Growth Trend to Continue in 2025

Following upon a record high year in terms of sales and launches, 2025 is as well expected to exhibit a strong performance amid rising urbanization levels, infrastructure developments and rising demand for premium homes driven by changing lifestyle preferences of consumers and higher disposable income levels. Strengthening of buyer activities, quality supply inflow by reputed developers in prime locations, growth of peripheral micro-markets, increased institutional investments and rising demand for tech-enabled modern homes are expected to diversify the residential sector landscape and define the supply and demand momentum. Amid soaring housing demand and quality launches, capital values which have been on the rise, are expected to move northwards in 2025.