Demand for Rs 1 Crore+ Homes Shields Indian Real Estate Market in Q1 2025: JLL Report

India’s housing real estate sector continued to hold steady during the first quarter of 2025 as total sales reached 65,246 units in the top seven cities. Robust demand for housing above Rs 1 crore, especially in the Rs 1.5–5 crore category, supported this performance and offset the slowing momentum in the affordable housing segment, as per a recent report issued by JLL.

The metros of Bengaluru, Mumbai, and Pune dominated the realty market again with combined share in total sales, totaling 66%. This has been ascribed by the report to high densities of multinational businesses, start-ups, and top-level infrastructure works in these locations, making them very attractive in which to stay and work.

The transition in purchasing inclination towards more spacious, superior houses reflects growing prosperity, altering expectations of lifestyles, and a shift towards improving the quality of dwelling spaces. It has also influenced developers to be more attentive towards mid to high-end housing projects, taking launches in keeping with the existing demand scenario.

Interestingly, Q1 2025 also saw an increase in new project launches, with almost one-fourth of sales driven by projects launched in the same quarter. The report pointed out a 107% year-on-year rise in launches of homes in the price band above Rs 1 crore, reflecting robust developer confidence in the high-end residential segment despite overall economic uncertainties.

Dr. Samantak Das, India Chief Economist and Head of Research and REIS, JLL, said that the increasing appetite for high-end homes has effectively cushioned the entire residential market from a greater sales fall. He also said that the reduced interest in homes priced below Rs 1 crore indicates a greater market trend towards larger, lifestyle-driven homes.

The scenario for the rest of 2025 looks optimistic, with developers continuing to be keen on the luxury segment. The interplay between growing disposable incomes, better financing facilities, and an emerging consumer base is likely to continue impelling dynamics in the high-end residential market.

With buyers of houses more and more concerned about quality, space, and possession, the trend towards investing in properties worth over Rs 1 crore is set to pick up momentum further, emphasizing the changing paradigm in India’s housing market.