The deals at the upper end are beginning to feel routine. In certain pockets of Gurugram, experts speak of Rs. 8-10 crore conversations with the same casual manner that Rs. 2 crore units commanded not very long ago. It is not that the mid-market has disappeared; it is that it has stopped setting the tone. Pricing power has quietly migrated upward.
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Luxury housing drives the bulk of residential sales across India’s top cities as the market’s center of gravity shifts toward premium living
According to JLL India, homes priced above Rs. 1 crore accounted for nearly 63% of total residential sales in 2025, up from about 53% the year before. Total residential sales value has edged past Rs. 6 lakh crore.
It is amplified by what Knight Frank India attributes to the steady expansion of India’s high-net-worth population. IPO activity alone, over $19 billion raised across more than 100 companies in 2025, has created a fresh layer of liquidity that is not particularly price-sensitive in residential decisions.
Arjun Gehlot, Director, Ambience Group, says, “Luxury housing is increasingly driving residential sales across India’s top cities, led by a clear shift in buyer priorities. At the top end, brand credibility has become non-negotiable. Buyers are aligning with developers who can deliver consistently, while also evaluating financial strength, execution track record, and long-term design quality. This segment is witnessing a more informed, investment-led approach, which is influencing how developers plan, partner, and position their offerings.”
“From an investment standpoint, luxury housing is offering more predictable value retention. That is attracting a different class of investor, one that is less speculative and more strategic. Infrastructure has helped. As a result, the early movers, mostly investors, have been followed by the end-users. However, for all the talk of premiumisation, the market still depends on the mid-income buyer. And yet, capital, both financial and managerial, continues to flow disproportionately into the upper tiers. It is where margins are cleaner, inventory cycles shorter, and brand positioning sharper,” said Mohit Gawri, VP, Rise Infraventures Limited.
“There is a subtle shift even in the luxury segment. The earlier luxury buyer, status-conscious, location-fixated, has been replaced by someone far more evaluative. The conversation has moved from pin codes to product, reflecting a deeper change in buyer priorities. It is less about owning a home and more about owning a certain quality of living. That is where developers are now competing,” said Ashok Singh Jaunapuria, MD & CEO, SS Group.
In Mumbai, the gravitational pull of established luxury micro-markets remains intact, but pricing has reached a point where the demand is incremental and selective. In contrast, Gurugram has been growing. JLL’s estimates suggest that Rs. 10 crore-plus home sales in the city crossed Rs. 24,000 crore in 2025, putting it ahead of Mumbai in that bracket. Bangalore and Hyderabad are also witnessing significant growth.
“The premiumisation we are seeing is not restricted to metros anymore. In markets like Mohali, there is a growing segment of buyers willing to invest in better-designed, higher-value homes, provided the ecosystem, schools, healthcare, and connectivity keep pace. What is also becoming evident is that these buyers are not benchmarking locally anymore; they are comparing product quality, amenities, and planning standards with developments in larger cities, which is gradually raising the bar for developers operating in Tier 2 markets,” said Udit Jain, Director, One Group who brings extensive experience in operating across both Tier 1 and Tier 2 real estate markets.
Karan Malik, Regional Director, Realistic Realtors, says, “There is also a behavioural layer here that rarely makes it into reports. In the last few years, the definition of “adequate space” has been permanently altered. A 3BHK is no longer a default upgrade; it is often a compromise. Projects all over the country are reporting stronger traction for larger configurations. The expectation levels have risen, and buyers are comparing products across cities, not just within them.”
Somewhere in all this, the market has become quieter, even as it has grown larger. The market, for now, seems comfortable letting this imbalance persist. Demand is concentrating at the top even as the base remains broader but less decisive. Whether this is a phase or a longer reordering is still unclear. But for the moment, the centre of gravity has shifted, and it does not appear in a hurry to move back.
