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

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