India’s Premium Housing Market Drives Value Despite Slower Volume

India’s real estate landscape is witnessing a notable shift in 2025: even though the total number of homes sold is stabilizing, the total value of these sales is surging. According to recent ANAROCK research, residential sales volumes across India’s top cities are plateauing, but the housing market’s value is expected to grow by nearly 20% in FY26. This value-led growth is being driven primarily by strong demand for luxury and premium housing, marking a clear transition from a volume-driven market to one focused on higher-end properties.

At the same time, macroeconomic forces are working in favor of buyers: the Reserve Bank of India’s multiple repo rate cuts have lowered borrowing costs, improving housing affordability in several major cities. R.P. Realty Plus+1 Reports from Knight Frank show that lower interest rates are making homes more accessible, especially for mid-income buyers.

On the pricing front, data from the National Housing Bank (NHB) reveal that property prices have risen in 45 out of 50 tracked cities during Q1 FY26, supported by strong urban demand and the lower loan rates. Moreover, home-price growth is not just a local phenomenon — a recent survey of property market experts predicts that average home prices in 2025 will increase by around 6.5%, with luxury buyers increasingly leading the charge.

Luxury housing, in particular, is holding up very strongly: in Q3 2025, high-end units (priced above ₹1.5 crore) made up 38% of new launches, while premium units in the ₹80 lakh–₹1.5 crore range contributed another 24%. Major markets like Bengaluru and Hyderabad are fueling this demand, supported further by improving office leasing — a positive sign for both residential and commercial real estate sentiment.

Overall, the real estate market in India is entering a mature phase, where value matters more than just volume. Buyers are gravitating toward upscale properties, developers are fine-tuning their project mix, and macro-financial tailwinds are aligning to support a sustainable but premium-oriented growth curve.