Premium Housing Demand to Push Home Prices Higher in India Through 2028: Reuters Poll

High-value residential properties are taking a larger share of India’s housing market. Homes priced above ₹10 million accounted for 63% of total residential sales in 2025, compared with 53% in 2024, according to data cited in a Reuters poll of property analysts. 

Premium Homes Gain Share 

The rise in premium transactions came despite a broader slowdown in housing activity. Total residential sales fell 11% in 2025, indicating that buying activity has become increasingly concentrated in the upper end of the market. 

At the same time, demand for lower-priced housing weakened sharply. Purchases of homes priced below ₹10 million declined by 31%, based on findings from property consultancy JLL. 

Home Prices Projected to Rise Through 2028 

The Reuters poll, conducted between February 23 and March 10, 2026, showed that average home prices in India are expected to increase about 5% annually through 2028. 

The projected growth follows a moderate increase in recent years. Calculations based on the Reserve Bank of India’s House Price Index indicate that home prices rose 3.6% in 2025. 

In the previous Reuters survey released in December, analysts had projected price growth of around 6% for 2026 and 5% for 2027. The latest estimates suggest price gains could remain broadly stable over the medium term. 

Urban Markets Expected to See Moderate Increases 

As per the report, price movements are expected to remain broadly similar across India’s largest residential markets. Analysts surveyed said housing prices in Mumbai, Delhi, the National Capital Region, Bengaluru and Chennai could rise between 5% and 7% over the next 3 years. 

Expectations for the luxury segment remain steady. 12 out of 14 analysts polled indicated that the supply of luxury homes would either increase or remain unchanged this year, while 2 expected supply to decline. 

On the demand side, 10 analysts said interest in luxury housing could either rise or remain stable, while 4 expected demand to soften. 

Rental Costs Expected to Increase 

Housing prices in major cities have been rising faster than incomes, which may keep more households in rental accommodation. 

Median forecasts from the poll show urban rents could increase by 6% to 8% over the next year, a pace estimated to be at least twice the country’s consumer inflation rate. Some property consultants expect rents in major cities to rise between 7% and 15%. 

Read More: Infrastructure Push May Lift Land Prices in Tier-2, Tier-3 Cities by Up to 100%: Report! 

Conclusion 

The survey indicates that India’s housing market may continue to see moderate price growth over the next few years. Market activity remains concentrated in higher-priced properties, while demand for more affordable homes has slowed. 

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