Shift in the real estate industry has always been subtle. Similar was the case this time, with an increase in sales in the Rs 1 crore-plus bracket. According to JLL India’s Residential Dynamics Report Q4 2025, premium housing, defined conservatively as Rs 1 crore and above, now accounts for 63 per cent of total sales, up from 53 per cent a year earlier. This was in a year when overall residential sales declined 11 per cent. The contradiction is structural.
Margins have emerged as new mantra
Developers, of late, are no longer building for volume. Rather, margins have emerged as the new mantra. As a result, there is a visible tightening in how land is underwritten. What has changed is not just income, but intent.
“In the last few years, buyers are not merely upgrading space; they are reclassifying housing altogether. Homes have become hybrid environments, office, retreat, and status signal, often within the same square footage. The demand for larger layouts and amenity-heavy projects is not entirely new, but the manner in which it is shaping is different today,” said Mohit Kalia, senior vice president – Sales & Marketing, HCBS Developments.
The NRI capital cycle is also playing a key role. Even though it is not always visible in quarterly data, it is evident in transaction patterns. Real estate experts now speak of weekend spikes aligned with overseas time zones. Deals are being evaluated on video calls, closed through power of attorney, and often benchmarked against global property prices.
Micro-markets rewriting their own scripts
Micro-markets, meanwhile, are rewriting their own scripts. Infrastructure has always been a trigger, but its role in enabling luxury is becoming more pronounced. The Dwarka Expressway corridor, parts of North Bengaluru, and select pockets in Pune are no longer fringe expansions; they are being positioned as premium alternatives to saturated cores. The language of location is shifting, from centrality to connectivity. Developers, understandably, are aligning with where the demand and capital appear most predictable.
“Over the past few years, the buyer profile has evolved more decisively than most of us anticipated. There is a clear preference for larger homes, better specifications, and integrated developments that offer a sense of completeness. From a realty point of view, this aligns with project viability as well, since premium segments provide better absorption visibility and financial cushioning. However, it also requires sharper execution and a deeper understanding of what today’s buyer truly values,” said Sehaj Chawla, Managing Director, TREVOC Group.
While premium housing is clearly gaining traction, it would be premature to suggest that it defines the entire market. There remains a substantial base of end-users for whom affordability is still the primary consideration. The challenge lies in balancing cost pressures with pricing expectations. For developers operating in this segment, margins are tighter, and execution discipline becomes even more critical. The opportunity exists, but it is structurally more demanding.
“Luxury housing in India is increasingly being driven by aspiration as much as affluence. It’s no longer just about higher ticket sizes, but about delivering a differentiated, future-ready living experience. Today’s buyers are far more informed and selective; they are evaluating projects on parameters such as design quality, location advantage, brand credibility, and long-term value creation. This shift is pushing developers to elevate their offerings, making luxury a more experience-led and value-driven segment rather than just a price-defined one,” Salil Kumar, Director-Marketing and Business Management, CRC Group, concluded.
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