Rise of Premium & Luxury Housing: Above INR 1 Crore

The residential real estate market is structurally changing and the premium housing segment and the luxury housing India category have become the strongest segments in terms of growth.

The houses costing more than INR 1 crore, which used to be a niche, are currently taking an increasing proportion in the new launches and sales across large cities. What was initially a recovery after the pandemic has turned into a momentum to continue, transforming the luxury property market in India.

The industry data has been recording strong growth in the luxury housing sales over the last two years, especially in the metros and fast-growing urban corridors. Developers are reporting an increased absorption rate of 1 crore upwards than the mid-income housing, which is a clear indication of mid-segment to premium housing.

Understanding the Demand for Homes Above INR 1 Crore

The rising demand for houses of more than 1 crore in the metros is anchored on the following structural factors:

There are a growing number of high-net-worth customers, entrepreneurs, corporate workers and international investors, which enhanced wealth-based housing demands. Real estate is also one of the assets that find favour as a long-term security, especially in the high-end residential sector of India.

 

 

 

 

 

 

 

 

 

“The drop in lead-to-buy conversion days is essentially due to higher sales of big-ticket size homes across the top cities,” says Prashant Thakur, Executive Director & Head – Research & Advisory, ANAROCK Group

The current aspirational home buyers in India are not only buying shelter but also investing in lifestyle. Higher floor plans, gated communities, fitness centers, concierge service and smart-home technology have become a determining point in luxury apartments in India.

One of the significant changes in the luxury housing trends in 2026 is that the millennial luxury buyers and first-time luxury buyers are upgrading directly to the premium homes. This transition has been driven by the availability of structured finance and dual-income households.

“India’s homeowners increasingly view interiors as a strategic investment in high-end properties with larger BHKs and premium features are gaining traction among affluent buyers.” -Sudhir Pai, CEO, Magicbricks

Also Read: Shift from Metros to Suburbs: Emerging Locations & Projects

Infrastructure as a Catalyst

The luxury housing demand cannot be overstated by the effect of infrastructure on the housing demand. Metro city luxury housing has been extended to more territories with the metro rail extensions, expressway, airport development and commercial centres. In Mumbai Metropolitan Region, Delhi NCR, Bengaluru and Hyderabad, branded residences in India and high-rise luxury apartments are witnessing increased traction in the peripheral zones.

The enhanced connectivity lowers commuting time, thereby increasing the feasibility of suburban luxury developments. This has also favoured increasing real estate absorption in micro-markets that are emerging.

“Apartments priced above Rs 1 crore accounted for around 62% of total residential sales, reflecting rising buyer affluence and evolving lifestyle aspirations.”  - Samantak Das, Chief Economist & Head of Research, JLL India

City-based Momentum in Luxury Real Estate

Luxury Housing Mumbai:

Mumbai remains a market leader in the ultra-luxury market when it comes to prime areas and developments by sea. But the periphery luxurious avenues are also emerging in prominence because of affordability and the modernization of infrastructure.

Premium Homes Bengaluru:

With the IT and startup ecosystem, villas and high-end gated communities have been well-received in Bengaluru. The stable growth in employment has directly increased the demand for luxury homes in the city of India.

 

 

 

 

 

Delhi NCR Luxury Market:

In Gurugram and in select sectors of Noida, there are high new launches within the 2-5 crore bracket and this is aided by better infrastructure and corporate expansions.

Hyderabad Luxury apartments:

The city of Hyderabad has become one of the most developed markets in the premium flats offering competitive prices, good-quality construction and high rental values.

“India’s residential real estate story is no longer just about quantity — it’s about quality, confidence, and lifestyle.” -Abhishek Kiran Gupta, CEO & Co-Founder, CRE Matrix

Also Read: Indian Housing Market Trends across Major Cities - 2026

Supply Dynamics and Market Outlook

The developers are recalibrating supply pipelines to suit new preferences. New launches become more spacious, environmentally friendly, health-conscious, and a curated community.

Although the launches have increased, the luxury stock in various cities is balanced because of consistent consumption. The housing market 2026 India macro-environment indicates that the premium category will remain stable, despite a possible moderation in the middle-income segments.

Notably, the segment is no longer confined to ultra-luxury. The INR 1-3 crore range is the new luxury price point, as a sign of democratization of the luxurious and the growth in the wealthy middle classes of India.

“The luxury and mid-segments have seen an uptick in supply, driven by strong demand and developer confidence.” -Amit Masaldan, Chief Revenue Officer, Housing.com

The reason why luxury housing is on the rise in India is due to the combination of economic development, urbanization, change of lifestyle and infrastructure. The buyers are focusing on space, privacy and community living, which are not common with the older metro cores. In turn, developers are providing architecture-incorporating technology and sustainability projects.

With the growth of the economy and the development of wealth creation in India, the luxury real estate market in India is likely to continue on the same trend. The aspirational is rapidly being institutionalized among upwardly mobile urban families.

Conclusion

The rise of homes valued at more than INR 1 crore is a landmark in the Indian real estate journey. The growth of the premium housing segment is being supported by strong fundamentals like infrastructure growth and demographic changes. To investors, be it the developers or the homebuyers, the changing luxury property market in India has opportunities based upon long-term demand, consistent appreciation and aspiration living.

The premium lifestyle of the housing market in India is no longer a cyclical process; it is a structural process that is redefining the future of urban living.