Cheap Flats Losing Charm? Demand For Premium Homes Skyrockets In Delhi-NCR, Bengaluru
Sales of flats under Rs 1 crore dropped 32% in 7 cities in the first half of 2025, while demand for premium flats rose 6%, reflecting changing Indian homebuyer preferences
The Indian middle class has traditionally sought homes that balance convenience and affordability. However, with rising inflation and evolving preferences, buyers are increasingly attracted to flats offering superior facilities and amenities, signalling a shift in urban lifestyles.
Significant Decline In Affordable Flat Sales
In the first half of 2025, sales of flats priced under Rs 1 crore fell by 32% across seven major cities, reveals a JLL India report. These cities, Mumbai Metropolitan Region (MMR), Delhi-NCR, Kolkata, Chennai, Hyderabad, Bengaluru, and Pune, saw a total of 1,34,776 flats sold between January and June, a 13% drop from the previous year.
This figure excludes sales of unfinished houses, villas, and plots.
Surge In Demand For Premium Flats
Conversely, demand for flats priced above Rs 1 crore increased by 6% during the same period. A total of 82,972 premium flats were sold, compared to 51,804 affordable flats.
Premium flats now make up 62% of total sales, up from 51% in the first half of 2024, according to the JLL report cited by Jagran.
Outlook For Real Estate Market
While the demand for affordable flats is decreasing, this does not imply a drop in home ownership aspirations. Rather, it highlights a growing preference for premium properties as infrastructure and urban amenities improve.
If interest rates continue to fall and government support remains, the real estate market is expected to grow steadily.
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First Published:
July 28, 2025, 09:19 IST
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