Premium and luxury housing demand is rapidly expanding beyond India’s metros, as developers have recorded robust sales in “emerging cities” this year.
Once concentrated in Mumbai, the National Capital Region and Bengaluru, high-value homes, priced above Rs 1–2 crore, are seeing strong traction in Chennai, Hyderabad and Kolkata, recent data and company filings show.
Developers such as Prestige Estates, Lodha and Puravankara reported record performances in the first half of FY26, supported by strong demand in both traditional and new markets with mid and luxury residences sales taking the lead.
The big shift
The shift towards high-value housing is also reflected in broader market data. Knight Frank’s India Real Estate Report for Q3 2025 shows that homes priced above Rs 1 crore now dominate sales, with units in the Rs 10–20 million segment up 17 percent year-on-year and Rs 100–200 million homes up 170 percent.
Chennai recorded the strongest sales growth among major cities at 12 percent year-on-year, while Kolkata and Hyderabad also saw gains.
While total home sales volumes across top eight cities fell by a percent from the previous year to 95,547 units, the overall sales value rose 14 percent to Rs 1.52 lakh crore, indicating a shift towards premium and luxury housing, PropTiger’s Real Insight Q3 2025 report said.
Chennai led with 121 percent annual sales growth, followed by Hyderabad at 53 percent, while Mumbai and Pune recorded declines.
“The Indian residential market is transitioning to a mature phase of value-driven growth,” said Onkar Shetye, executive director, Aurum PropTech.
Premiumisation is the name of the game
City-level data also point to sustained premiumisation.
In Hyderabad, residential registrations grew 35 percent YoY in September. Homes priced above Rs 1 crore made up 22 percent of all registrations and contributed 53 percent of total transaction value, according to Knight Frank.
The weighted average price rose 20 percent, with the Rangareddy district recording a 28 percent surge driven by large-format and luxury projects.
Kolkata’s housing market saw a 15 percent rise in home registrations in August. Larger homes gained favour, with the share of units above 1,000 sq ft rising to 13 percent, up from 7 percent a year earlier, reflecting a gradual upgrade in buyer preferences. India’s luxury housing momentum is also intersecting with the global rise of branded residences.
A recent Knight Frank study ranked India sixth worldwide for live branded residence projects, accounting for 4 percent of global supply, and tenth for upcoming pipeline, representing 2 percent of future stock across 83 Countries..
Mumbai, Delhi-NCR, Bengaluru, and Pune dominate the segment, while Goa and Uttarakhand are emerging as hubs for lifestyle and second-home projects, it said.
“India’s branded residence sector is still relatively young but is rapidly making its mark on the global stage,” said Shishir Baijal, chairman and managing director, Knight Frank India. “From landmark high-rises in Mumbai and NCR to emerging leisure destinations like Goa and Uttarakhand, branded residences are set to redefine luxury living in India.”
The growth of branded homes aligns with rising wealth base. In 2024, the country had 85,698 individuals with a net worth of 10 million dollars or more, accounting for 3.7 percent of global high-net-worth individuals.
Globally, the number of branded residence schemes has risen from 169 in 2011 to 611 in 2025 and is expected to exceed 1,000 projects by 2030, Knight Frank global head of research Liam Bailey said.
Source: https://www.moneycontrol.com