Sushil Mohta on India’s Massive Shift to Premium Housing: The Luxury Upgrade

The Indian real estate sector is currently riding an unprecedented wave of premiumisation, marking a structural pivot away from entry-level and budget configurations toward luxury, well-planned spaces. Driven by an evolving consumer mindset that aggressively prioritizes superior construction quality, lifestyle amenities, and long-term asset security, buyers are willingly upgrading to larger and more sophisticated layouts. 

Sushil Mohta, Chairman of Merlin Group, decodes how this premium momentum is redefining urban development boundaries and fundamentally rewriting the value proposition of modern property ownership.

The Indian housing market is experiencing a significant shift toward high-end properties, with units priced above ₹1 crore accounting for 64% of total residential sales in the first quarter of 2026, up from 45% the previous year. Furthermore, transactions for ultra-luxury homes priced between ₹20 crore and ₹50 crore surged by 105% year-on-year in the first half of 2026, reflecting a strong preference among affluent buyers for superior asset quality.

Kolkata’s luxury housing market surged 2.4x quarter-on-quarter in April–June 2026, according to Anarock Research, fueled by a sharp jump in ultra-luxury launches priced above Rs 4 crore. The share of this top-end segment in new supply rose from 3% in Q1 2026 to 27% in Q2 2026, reflecting developers’ growing focus on high-margin, premium projects with stronger pricing power.

But what are the factors driving this demand? Let’s take a look.

Kolkata’s homebuyer profile has undergone a quiet but decisive shift. End-users are increasingly trading up from compact starter homes to larger, premium configurations, pushing average ticket sizes higher across the city’s key micro-markets.

This upgrade cycle is being led by a more discerning buyer who values long-term security as much as immediate affordability, and who is now willing to pay a premium for branded developers with credible delivery track records. In a market still sensitive to price, reputation has become a key purchase driver, with established names gaining share over smaller, untested players.

Sushil Mohta opines, “Kolkata’s real estate story is no longer just about price per square foot, it’s about trust, land value, and lifestyle. The shift toward larger homes, branded developers, and plotted assets shows a buyer who is thinking long-term and trading up with purpose. For developers, the imperative is clear: understand the customer’s evolving priorities, deliver credibility alongside configuration, and design for a lifestyle that matches the city’s rising aspirations.”

This evolving preference is also reviving interest in plotted developments, especially along Kolkata’s peripheral corridors where land availability and improving connectivity are creating fresh growth pockets. Micro-markets such as Rajarhat–New Town, the EM Bypass extension towards the airport, and the Diamond Harbour Road axis are emerging as the next hotspots, offering the large land parcels and infrastructure that established central localities no longer have.

As industrial and logistics infrastructure strengthens along NH corridors, satellite townships are likely to develop around the city’s periphery, mirroring the pattern seen in other Indian metros a decade ago. In the north, areas like Kalyani, Barrackpore, Barasat, and Belgharia are poised for a fresh cycle of growth once work on the proposed Kalyani airport gains momentum, further extending Kolkata’s plotted-development belt beyond the traditional urban core.

Buyers are prioritizing land ownership and the flexibility to customize their homes over time, viewing plots as both a lifestyle choice and a hedge against inflation.

At the same time, lifestyle-led housing, featuring integrated clubs, expansive green spaces, and wellness-focused amenities has moved from being a niche differentiator to a baseline expectation in Tier-1 pockets.

“For Kolkata’s developers, the message is clear” says Sushil Mohta, “the city’s growth story is no longer just about square footage and price per foot, but about trust, land value, and a holistic living experience that matches the aspirations of its residents.”