

Real estate premiumization not a temporary trend, say experts
Bengaluru: In the real estate boom cycle, the flight to quality and premiumization have been defining trends. In a panel discussion on ‘Premiumization in real estate: opportunities and risks,’ at the recent Mint India Investment Summit (MIIS), experts spoke about what homebuyers, investors and occupiers want when they are buying an apartment or renting an office space.“The premiumization that is being talked about is really a quality correction that is happening in real estate.
With increasing affluence and democratization of affluence, people want better quality, and (they want to) experience products they have not experienced before. Their expectations and benchmarks are set by what is happening in Dubai or London,” said Harmohan Sahni, managing director and CEO, Raymond Realty Ltd, speaking at the Mint India Investment Summit.India's residential market experienced a shift toward premiumization in 2025, with properties above ₹1 crore growing 6% year-on-year, while mass housing below ₹1 crore fell 30% during the period, according to recent data from property advisory JLL India.
This demonstrated the market's successful transition toward higher-value transactions, validating developers' premiumization strategies and buyers' appetite for premium offerings.Not only are residential developments evident, but the flight to quality in new and upgraded workspaces is also evident. The transformation of workspaces is prompted by the need for companies to engage and retain a young workforce.
Attrition is a high cost, and they are looking to minimize that.Shirish Godbole, CEO, Knowledge Realty Trust (REIT), said, “I think, in office in particular, institutionalization of space has really started occurring. The markets are
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