Premium Takes the Lead: Affordable Flat Sales Plunge 32% in H1 2025

A new report by JLL India reveals a notable shift in urban housing preferences across India’s top seven cities—Mumbai, Delhi-NCR, Kolkata, Chennai, Hyderabad, Bengaluru, and Pune. Here's the full breakdown:

Overall sales of apartments dropped 13% in January–June 2025, with just 134,776 units sold.
The mass housing segment (sub–₹1 crore) saw a sharp slump, plunging 32% to 51,804 units sold.
In contrast, premium apartments (₹1 crore+) rose by 6%, reaching 82,972 units.

This dynamic shift means luxury homes now account for 62% of total apartment sales, up from 51% a year ago.

Why Are Buyers Moving Upmarket?

JLL's Chief Economist Samantak Das points to several factors:

Growing affluence among urban buyers.
A trend toward spacious, high-end living.
Desire for premium amenities and lifestyle upgrades.

Supporting voices from the industry include:

Ramani Shastri of Sterling Developers highlights steady growth backed by lower home loan rates, policy support, and infrastructure.
Shiwang Suraj from InfraMantra notes strong luxury home demand in Gurugram, driven by HNIs, NRIs, and new-gen wealth creators.
Angad Bedi of BCD Group links record office-space leasing to increasing housing demand.
Yathish Kumar of M5 Mahendra Group observes rising numbers of HNWIs and ultra-HNWIs, especially in urban hubs.

Implications for Stakeholders

🔍 For Developers

Premium homes are the growth frontier—it's prime time to launch upscale, amenity-rich projects.
Affordable housing is losing ground; unless cost barriers or incentives are introduced, the segment may stagnate.

📊 For Policymakers

There's an urgent need to revive affordable housing, perhaps through subsidies, tax breaks, or policy nudges.
Striking a balance between meeting luxury demand and ensuring mass housing availability is critical.

🏠 For Buyers

Those seeking budget-friendly homes face diminishing options and tougher competition.
Upsizing buyers benefit from a surge in premium projects and innovative amenities.

What Lies Ahead?

The trends reflect broader macro-economic shifts:

With developing wealth and stable interest rates, demand for upscale living is set to rise.
Unless the affordable segment gets a policy boost or developers carve lower-cost niches, it risks being left behind.
The interplay of affordability, aspirational living, and urban infrastructure will define housing in the next few years.

Final Word

The first half of 2025 has marked a clear pivot toward premium real estate. For developers, policymakers, and buyers, the message is simple: the market is moving up—and fast. Affordable homes need renewed focus to stay relevant in India’s evolving housing landscape.

Premium Takes the Lead: Affordable Flat Sales Plunge 32% in H1 2025