In India, sales of homes under Rs 1 crore fell significantly. This decline was 32% in seven major cities during the first half of 2025. At the same time, demand for more upscale flats rose. This trend shows how Indian buyers’ preferences are changing.
The stamp duty exemption used to apply only to properties up to Rs 10 lakh. Now, it covers homes up to Rs 1 crore. This change aims to help more people buy homes.
Indian buyers traditionally look for homes balancing ease and cost. However, with rising prices and changing tastes, buyers prefer flats with better features. This signals a shift in city living.
Sales of affordable flats dropped sharply. In early 2025, sales of homes under Rs 1 crore fell 32% across seven cities. These cities include Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, and Pune. From January to June, 1,34,776 flats sold. This is 13% less than the year before. This figure did not include unfinished homes, villas, or plots.
Demand for premium flats, costing over Rs 1 crore, grew by 6%. During the same period, 82,972 premium flats sold. This compares to 51,804 affordable flats sold. Premium flats now represent 62% of all sales. Last year, they were 51%.
Several factors drive these market changes. Lower home loan rates are one reason. Government policies favor real estate. Plus, infrastructure in these cities is improving. These factors encourage buyers to choose better homes.
The market outlook remains positive. While fewer affordable homes are selling, people still want to own homes. They are now drawn to premium properties as city amenities improve. If loan rates stay low and government support continues, the real estate market should see steady growth.