India Homebuyers Shift Towards Premium Apartments

Premium homes now make up the majority of apartment sales in India’s seven largest housing markets. In the first half of 2025, 62 per cent of units sold were priced above ₹1 crore, up from 51 per cent a year earlier. With sales of cheaper homes down 32 per cent, rising land and construction costs appear to be reshaping who can afford to buy in Indian cities.

Developers are responding to the same pressure. Launches of homes priced above ₹1 crore jumped 110 per cent over the period, as costlier land makes upmarket projects easier to justify than budget ones. Demand in the upper tiers also grew: sales of homes at ₹3 crore and above rose 14 per cent, and those above ₹5 crore rose 8 per cent. Premium housing, in other words, is no longer confined to the luxury end. Industry experts link the trend to changing buyer expectations. Households are weighing space, design, green cover, security, wellness facilities and build quality alongside price and location. A real estate promoter said a developer’s record on timely delivery has become part of what buyers are willing to pay for, which favours established builders.

The geography is shifting too. Mumbai, Bengaluru, Pune and Delhi-NCR still account for most sales, but appetite for upmarket homes is spreading to smaller markets. The Tricity region around Chandigarh, long seen as a market of genuine end-users, is drawing non-resident Indians, business owners and senior professionals who want homes near established social and professional networks. The picture is less comfortable for households with modest budgets. Urban planners note that when new launches tilt towards costlier homes, supply for first-time and middle-income buyers tightens. That can push them towards city fringes with weaker transport links, or keep them in rented housing for longer.

The environmental questions are easy to miss. Amenity-heavy premium projects often advertise greenery, but larger developments also draw more energy and water and take up more land. Planners say green claims should rest on certified building standards and good access to public transport, not only on landscaping. Whether premium housing becomes the norm or a passing phase depends on several factors. These include whether developers rebalance towards homes below ₹1 crore, whether new premium projects keep their delivery promises, and whether smaller cities add affordable supply as upmarket demand spreads. Buyers, for their part, would do well to check a project’s delivery record and verified sustainability credentials before paying the premium.

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India Homebuyers Shift Towards Premium Apartments