Premium homes are gaining popularity in India’s housing market. According to Knight Frank India, nearly half of all residential property sales in the first half of 2025 were for homes priced above Rs 1 crore. This marks a clear shift in buyer preference towards larger and more luxurious homes, highlighting a growing trend of premiumisation in key cities.
Knight Frank India in its flagship report, India Real Estate: Office and Residential Market – January to June 2025 (H1 2025), said that the most noteworthy trend that has prevailed is the premiumisation of the residential segment across the markets. “49% of all home sales were for homes costing Rs 1 crore and above, which saw sales of 83,433 units across the key markets, while 51% was in the category of up to Rs 1 crore with sales amounting to 86,768 units in H1 2025.”
Source: Knight Frank report
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Top 8 Indian cities record sale of more than 1.7 lakh units
“During H1 2025, India’s top eight cities recorded the sale of 170,201 housing units reflecting the market’s sustained momentum over same period last year. Notably, the higher end of the market continued its strong run, with homes priced above Rs 1 crore (Rs 10+ million) witnessing a robust 17% year-on-year (YoY) growth in sales,” the report said.
This resilience helped anchor the market even as sales in the sub-Rs 1 crore segment decelerated. New launches at 179,740 units continued to exceed sales during the period, demonstrating developers’ continued confidence in long-term demand fundamentals. The steady activity across
launches and high-value sales signals the sector’s growing maturity and the increasing appetite for quality housing.
In the housing segment costing less than Rs 1 crore, Mumbai was the highest contributor with sales of 30,333 units followed by Ahmedabad which recorded sale of 18,083 homes in this price category. However, NCR takes the lead in sales of homes costing Rs 1 crore plus recording sales of 21,828 units (81% of all sales in the city) in the first half of the year.
Bengaluru recorded sales of 18,629 units (70% of the total sales) in this segment. Mumbai, even though considered to be India’s most expensive residential market based on weighted average prices,
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