India’s residential real estate market is witnessing a clear shift toward premium housing, with homebuyers increasingly opting for higher-value properties. According to a new JLL report, sales of homes priced between ₹1.5 crore and ₹3 crore surged 58% year-on-year to 51,231 units during the first half of 2026, making it the fastest-growing price segment across the country’s top seven cities. The trend highlights rising purchasing power, changing buyer preferences, and developers’ increasing focus on premium residential projects.
Overall, residential sales across the seven major cities rose 3% to 138,382 units in H1 2026, while new housing launches increased 9% to 168,507 units, reflecting continued confidence among developers despite a moderation in overall market growth. Premium homes priced above ₹1 crore accounted for 71% of total residential sales, up sharply from 62% a year earlier.
Premium Homes Lead India’s Housing Market
The ₹1.5 crore-₹3 crore segment emerged as the strongest-performing category during the first six months of the year.
The report shows that buyers are increasingly moving toward larger, better-located homes with premium amenities, while demand for affordable housing continues to soften.
Sales by Price Segment
| Price Segment | H1 2026 Trend |
|---|---|
| ₹1.5 crore – ₹3 crore | 58% growth |
| Above ₹1 crore | 71% of total residential sales |
| Below ₹50 lakh | 32% decline |
| ₹50 lakh – ₹1 crore | 20% decline |
The data indicates that homes priced below ₹1 crore now account for just 28% of residential sales, compared with 39% in H1 2025.
Buyers Climb the Price Ladder
JLL attributes the premiumisation trend to several structural factors, including:
- Rising household incomes.
- Wealth creation through equity markets and business ownership.
- Demand for larger homes following the pandemic.
- Preference for projects by established developers.
- Better financing options for higher-income buyers.
Developers have also shifted their project pipelines toward premium housing, where margins are higher and buyer demand has remained resilient.
Key Drivers Behind Premium Housing Demand
| Driver | Impact |
|---|---|
| Higher disposable incomes | Increased affordability for premium homes |
| Lifestyle upgrades | Demand for larger and better-equipped residences |
| Developer strategy | More launches in premium categories |
| Investment demand | Greater interest in long-term capital appreciation |
Bengaluru Leads Sales, Chennai Records Fastest Growth
Among India’s major residential markets:
- Bengaluru recorded the highest sales volume with 35,017 units, up 16% year-on-year.
- Chennai posted the fastest growth, with sales rising 27%.
- Delhi-NCR recorded a 7% increase.
- Sales declined in Mumbai, Pune, Hyderabad, and Kolkata.
Together, Bengaluru, Mumbai, Pune, and Delhi-NCR accounted for approximately 76% of all residential sales during the period.
Developers Continue Expanding Supply
Despite higher interest rates and global economic uncertainties, developers remained optimistic about housing demand.
New launches reached 168,507 units, representing a 9% annual increase.
Bengaluru led new supply additions with 48,748 units, while Mumbai and Delhi-NCR also recorded double-digit growth in launches.
H1 2026 Housing Market Snapshot
| Metric | H1 2026 |
|---|---|
| Residential sales | 138,382 units |
| New launches | 168,507 units |
| Sales growth | 3% YoY |
| Launch growth | 9% YoY |
| Premium housing share (>₹1 crore) | 71% |
Affordable Housing Continues to Lose Share
While premium housing has gained momentum, the affordable segment has continued to shrink.
Sales of homes priced below ₹50 lakh fell by 32%, while the ₹50 lakh-₹1 crore category declined 20%, highlighting the growing affordability challenges facing middle-income homebuyers. Rising land costs, construction expenses, and developers’ preference for higher-margin projects have reduced the supply of lower-priced homes across major cities.
Looking Ahead
India’s housing market is increasingly becoming a premium-driven market, with buyers moving up the value chain and developers responding by launching more high-end projects. The 58% surge in sales of homes priced between ₹1.5 crore and ₹3 crore underscores the growing appetite for premium residential properties, while homes priced above ₹1 crore now dominate overall sales across the country’s largest cities.
Going forward, sustained income growth, infrastructure development, and continued wealth creation are likely to support demand for premium housing. However, the widening gap between premium and affordable housing also highlights the need for greater policy support and supply-side initiatives to ensure that middle-income and first-time homebuyers remain an integral part of India’s residential real estate market.
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