• Q1 2025 witnessed a total 10% year-on-year growth in demand for apartments priced INR 1 crore and above, largely driven by 22% year-on-year growth in sales of INR 1.5-3.0 crore housing segment. Premium housing (INR 3.0-5.0 crore) closely followed with 20% year-on-year growth.

• Bengaluru, Mumbai, and Pune maintained their dominance in the residential sector, accounting for approximately two-thirds (~66%) of total sales in the first quarter of 2025

• Despite a decline in sales, new property launches showed modest growth compared to the previous year

• In the first quarter of 2025, Bengaluru set a record for residential launches, surpassing all other Indian cities and achieving its highest quarterly launch volume to date.

   

MUMBAI, APRIL 24, 2025: Despite a steady decline in quarterly sub-1crore housing sales which generally constitute a substantial proportion of the overall demand, residential sales in Q12025 (January-March) experienced only a modest decline of 12% year-on-year and added up to 65,246 units. This limited drop was primarily due to robust demand in the INR 3.0-5.0 crore and INR 1.5-3.0 crore segments, which helped counterbalance the slowdown in relatively affordable housing. The steady growth in higher ticket size homes indicates increasing affluence among homebuyers, changing lifestyle preferences and buyers prioritizing larger and premium properties.

Housing sales in India's top seven cities continued to be dominated by Bengaluru, Mumbai, and Pune, which collectively accounted for ~ 66% of Q12025 sales. High concentration of MNCs and startups creating significant employment opportunities and ongoing infrastructure improvements make these cities increasingly attractive places to live and work. In addition to a 12% year-on-year drop in demand, total sales of 65,246 units during Q12025 recorded an almost similar 11% decline Q-o-Q. In terms of ticket size wise segregation of quarterly sales, only INR 1.5-3.0 crore homes witnessed around 14% Q-o-Q growth, accounting for ~24% share in quarterly sales volume.

Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad and Sohna.

Data includes only apartments. Rowhouses, villas, and plotted developments are excluded from our analysis.

It is interesting to note that over the last few quarters a significant share of quarterly sales volume has been contributed by projects launched during the same quarter. Q1 2025 was no exception, with around one-fourth of its sales being contributed by quarterly new launches. Launches by reputed developers with assurance of timely delivery and steady price appreciation, are driving the trend.

“The residential real estate market is showing signs of a shift in buyer preferences with lowering of demand for less than INR 1 crore housing and a growing affinity for mid to high-end properties. This as well suggests a potential upward movement in the overall market dynamics. While sales of apartments priced under INR 1 crore have dropped by around 32% compared to Q1 2024, housing segment priced at INR 1 crore and above has seen a growth of about 10% during the same period. This upswing in the higher-priced segment demand has shielded the overall housing sales from a sharper decline.” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

Developers are focusing more on mid to high-end projects to align with current demand patterns. High-end housing sector experienced a steady upswing with 107% year-on-year growth in launches of properties priced at INR 1 crore and above, driven by strong sales in this segment. Growth in launches despite economic uncertainties signals robust developer confidence in high-end housing demand. “Approximately 79,847 housing units were launched in Q1 2025, representing an 8% increase quarter-on-quarter. Year-on-year, the growth in Q1 2025 launches was about 1%. Driven by ongoing expansion in their commercial office sectors, the technology hubs of Bengaluru, Chennai, Hyderabad, and Pune collectively accounted for roughly 64% of new residential launches in Q1 2025. Bengaluru reached a significant milestone in Q1 2025, recording its highest-ever quarterly launch volume with a remarkable year-on-year growth of approximately 62%,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL.

Residential property prices in India's top seven metropolitan areas continued their upward trajectory in Q1 2025, with year-over-year increases ranging from 6% to 18%. While Delhi NCR led the pack with an impressive 18% price hike, Bengaluru followed closely, recording a substantial 13% increase. This trend spanning across Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, and Kolkata is attributed to steady demand and the introduction of high-quality residential projects. Given these market dynamics, property values are expected to continue their upward trend in the near term.

Building on the record-breaking performance of the previous year, 2025 is poised for robust growth in the residential sector demand. This optimistic outlook is driven by several key factors such as increasing urbanization, ongoing infrastructure improvements, growing demand for premium homes, higher disposable incomes and a declining trend in home loan interest rate. The supply dynamics is as well expected to maintain its momentum, characterized by heightened buyer activity, influx of quality developments from reputable builders in prime locations, increased institutional investments and rising popularity of tech-enabled, modern residences.

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 16,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education.

For further information, please visit jll.co.in