Week of October 5th – October 11th, 2025

India’s Housing Market Turns Premium: ₹1 Crore+ Homes Cross 50% Sales Mark

This week, the India’s residential real estate sector made headlines with a significant structural shift: for the first time, homes priced above ₹1 Crore have collectively accounted for over half (52%) of all sales across India’s top cities in the recently concluded Q3 (July-September) 2025. This decisive move into the premium and luxury space signals a new maturity and resilience in the market, driven by affluent buyers and strong economic fundamentals.

Key Market Takeaways and Deep Dive :

1. Premium Segment Dominance: The New Normal

The most striking trend is the market’s clear pivot towards higher-value properties.

• ₹1 Crore+ Segment Becomes Majority: Homes priced at or above ₹1 Crore now comprise 52% of total sales, a substantial jump from 46-48% in the previous year. This indicates a structural shift where buyers are increasingly opting for larger, higher-quality, and amenity-rich residences, moving away from a primary focus on affordable housing.
• The Sweet Spot: ₹1-2 Crore Homes Lead Volume: Within the premium bracket, the ₹1-2 Crore price segment has emerged as the largest by volume, accounting for approximately 28% of all residential sales. This segment witnessed a robust 17% Year-on-Year (YoY) growth, confirming it as the current nucleus of strong end-user demand.
• Ultra-Luxury Sees Astronomical Growth: The ultra-luxury segment (homes above ₹10 Crore, particularly the ₹10-20 Crore bracket) recorded an exceptional 170% surge in sales (though on a smaller base), highlighting a robust appetite among High-Net-Worth Individuals (HNWIs) in major metros.

2. Prices Surge Amid Stable Sales

Despite marginal fluctuations in overall sales volume, property prices continued their upward trajectory across the country, fueled by premium demand and limited new supply in established micro-markets.

• All-India Average Price Increase: The average residential prices across major cities rose by approximately 9% YoY.
• NCR Records Highest Price Appreciation: The National Capital Region (NCR) led the price surge with a remarkable 19-24% YoY increase, driven largely by key infrastructure developments like the upcoming Noida International Airport (Jewar).
• Southern Cities Maintain Momentum: Bengaluru and Hyderabad also saw significant price jumps of 15% and 13% YoY, respectively, cementing their status as top-performing technology and financial hubs.

3. City-Wise Performance Highlights

While the luxury segment drove value, the overall transactional volume showed varied city-level performances in Q3 2025:

City	Sales Performance (Q3 2025)	Key Trend
Mumbai Metropolitan Region (MMR)	Continues to be the largest market; steady volumes.	MMR and Pune combined account for nearly half of all national sales.
NCR, Bengaluru, Pune	Sales volumes remained largely stable or recorded a marginal dip.	Price appreciation was the key story in these cities, driven by the limited supply of new, high-quality projects.
Chennai	Strongest Growth: Recorded a 12-33% YoY jump in sales.	Posted its highest quarterly sales since the pandemic, indicating a clear market acceleration.

4. The Macroeconomic Tailwinds

The residential market’s sustained upcycle is strongly supported by a favorable economic environment:

• Favorable Credit Conditions: The Reserve Bank of India (RBI) maintaining a stable repo rate (and a 100-basis-point reduction since late 2024) has significantly improved liquidity and homebuyer confidence.
• Lower Inflation: Easing inflation has further boosted consumer sentiment and confidence in long-term investments like real estate.
• Festive Season Momentum: Developers are actively rolling out new projects and attractive financing schemes (like subvention offers) to capitalize on the historically strong festive season demand, which began early this quarter.