Luxury Living Surges as Affordable Flat Sales Plunge in India’s Top Cities

The Changing Face of Urban Real Estate: 2025’s Tale of Two Markets

Introduction

Imagine stepping into the vibrant world of Indian real estate in 2025. Across the bustling avenues of Mumbai, Delhi-NCR, Bengaluru, Pune, Kolkata, Hyderabad, and Chennai, a silent transformation is underway—one that’s redrawing the boundaries of aspiration, investment, and lifestyle.

A Dramatic Shift in Housing Preferences

JLL India’s recent market report reveals a stunning narrative: while the city lights shine brighter, India’s appetite for affordable, mid-income apartments dims.

From January to June 2025, sales of flats priced below ₹1 crore across these seven urban giants dropped by 32%, landing at just 51,804 units—a sharp descent that underscores shifting dreams and rising ambitions.

“Apartments valued at ₹1 crore and above represented approximately 62% of all sales during the first half of 2025, up from 51% last year,” observed JLL’s researchers.

Upsurge in Premium Home Demand

On the other side of this urban divide stands the robust and radiant luxury homes segment. Sales of premium apartments soared by 6% over the same period, reaching 82,972 units and seizing a record market share. The swelling demand for large, high-end homes is a testament to the rising affluence and changing aspirations of India’s urban elite.

Reasons Behind the Shift

• Bengaluru’s real estate visionaries point to lower home loan interest rates and robust policy support as tailwinds for premium housing.
• Gurugram’s spread of luxury supply is matched by demand from HNIs, NRIs, and emerging wealth creators.
• Record office leasing is driving up residential demand in metro corridors, say experts from leading construction firms.
• Premiumisation, as noted by market watchers, is now the prevailing current in urban housing.

The Numbers Behind the Transformation

Segment	H1 2025 Units Sold	Year-on-Year Change	Market Share H1 2025	Market Share H1 2024
Below ₹1 crore	51,804	-32%	38%	49%
Above ₹1 crore	82,972	+6%	62%	51%

Rising Affluence, Evolving Aspirations

From the emergence of luxury townships to the increasing number of high-net-worth individuals, the demand for exclusivity, large living spaces, and enhanced connectivity is redefining what it means to own a home in India’s metros. It’s a story not just of numbers, but of evolving urban dreams.

Outlook and Reflection

As India’s urban centers continue to expand and prosper, the focus on luxury and high-value real estate seems destined to intensify. Experts predict further premiumisation, supported by infrastructure upgrades, growing wealth, and a new generation of buyers seeking not just homes, but statements of lifestyle and status.