India’s residential market is selling a larger proportion of homes priced above Rs 1 crore, even as overall housing sales remain largely flat. Knight Frank India’s latest residential market assessment noted that homes priced above Rs 1 crore accounted for 55 per cent of sales across eight major cities during the first nine months of 2026, compared with 50 per cent in the same period last year.
Meanwhile, sales in the Rs 2-5 crore category rose 19.4 per cent year-on-year to 51,501 units, making it one of the stronger-performing price brackets.
Delhi-NCR Sales Decline
The broader market, however, presents a more measured picture. Residential sales across the eight cities remained almost unchanged at 2,58,238 units during the period. Delhi-NCR recorded an 11% decline in sales, although the Rs 2-5 crore category continued to register growth across major markets, including NCR.
ANAROCK Research’s third-quarter numbers offer another view of the market. Housing sales across the top seven cities increased 3% year-on-year to approximately 1,00,220 units. The growth was not uniform, with Mumbai, Bengaluru and Hyderabad recording increases while Delhi-NCR and some other markets saw a decline.
Taken together, the figures suggest that the premium housing market is gaining weight within residential sales, but the shift is not simply a story of buyers moving towards expensive properties.
Location, affordability, the quality of available supply and the expectations attached to a home are all influencing purchase decisions.
What is changing in the premium housing market?
Ashok Singh Jaunapuria, Managing Director and CEO of SS Group, said the change in buyer expectations was influencing the way residential developments were being planned.
“The growing preference for premium housing reflects how homebuyer expectations are evolving. Buyers today are looking beyond the size of a home and placing greater value on space, privacy, thoughtful layouts, construction quality and lifestyle amenities,” Jaunpuria said.
This is encouraging developers to focus on better-planned residential communities that offer a more complete living experience.
“Markets such as New Gurugram are well placed to benefit from this demand, supported by a strong base of professionals, entrepreneurs and buyers seeking upgraded living standards,” he noted.
Where Is Growth Happening In Gurugram?
In Gurugram, this demand is playing out across established residential locations as well as developing corridors.
New Gurugram, the Southern Peripheral Road and Dwarka Expressway have attracted residential investment over the years, with infrastructure improvements and the expansion of commercial and social facilities influencing buyer interest.
“However, the growth of these locations will depend on more than new launches,” Jaunpuria said.
The pace at which infrastructure and everyday services keep up with residential development will be important in determining their long-term appeal.
Ravikant, Founder and CEO of Elegance Enterprises, said affluent buyers continued to show interest in homes that offered quality and exclusivity, but were also paying closer attention to the details of a project.
“Despite changing market conditions and rising property prices, demand for well-designed homes is expected to continue among buyers seeking better living environments. However, buyers are becoming more discerning, carefully assessing developer credentials, project specifications, connectivity and delivery timelines before making a decision,” he said.
The preference for larger homes is also connected to how families use their living spaces. Work-from-home arrangements, changing family requirements and the need for separate areas for work and personal time have made layouts and usable space more important considerations.
Raghunath Reddy Bhattagiri, Co-founder and Managing Director of Triguna Projects, said the requirements of homebuyers had changed beyond the basic need for a larger property.
“Buyers are looking beyond the basic requirements of a house and seeking more space, dedicated work-from-home areas and greater privacy. The experience of recent years has reinforced the importance of homes that can accommodate changing family needs. This is particularly relevant in premium housing, where buyers are investing in a better quality of life,” he said.