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 maturing.” Over the past two decades, India’s residential and commercial real estate markets have matured significantly, leading to higher expectations and a greater need for distinct asset differentiation, he said.

Institutional growth and capital influx

The pandemic was a key turning point, when many employees did not come to work.

“So, to get them back to work, you obviously had to entice them with a lot of amenities and features which make them sort of feel comfortable coming into the office. Talent acquisition and getting the best people to work for you are very important criteria for companies now. Making them comfortable, giving them the best space, is getting them excited about coming to work,” Godbole added. Vivek K. Chandy, joint managing partner, JSA Advocates & Solicitors, said it has a lot of money that's there in the market.

“It's much easier to access funds today. Earlier, ECBs (external commercial borrowings) were not permitted in real estate. Today, you can get money from overseas in the form of ECBs,” Chandy said. The newfound availability of acquisition financing has brought more capital into the market, driving the development of higher-quality, premium residential and commercial real estate, he added.

“Raymond Realty addresses the largest segment in the market, which ranges between ₹2 crore, going all the way up to ₹10 crore, ₹12 crore, and even ₹15 crore,” Sahni said.

He emphasized that Raymond’s commitment to its core values of trust and excellence ensures that product quality remains an uncompromising standard for the brand.

“There is a minimum standard in every industry which gets lifted in every cycle, whether it's cars or homes. Every 10 years, the benchmark resets, and nobody wants to go below it. So I don't think it will get reversed or we are anywhere close to that,” he added.

Global standards, future outlook

A key factor driving the premium makeover of office spaces is the rise of global capability centres (GCCs).

“GCCs are really changing how much demand there has been for offices, and that has also had a trickle-down effect on every other part of India. The more GCCs enter the country, the more job creation will be huge and will continue in the coming years, despite AI (artificial intelligence), etc. And so, all of that means that they want the best employees to work for their companies and attract the best talent,” Godbole said. Providing a high-quality environment is essential to a company's core values, he said. This has led to a 'premiumization' of the workplace, designed specifically to attract top-tier talent.

Investment vehicles such as real estate investment trusts, or Reits, have also been a catalyst for the flight to premium drive.

“Reits are regulated and have brought some discipline into the market. That I believe is very good,” Chandy said. While smaller developers have historically cut corners by overbuilding, he expects this trend to subside. He also predicted a shift in the landscape as talent acquisition expands into smaller cities, paving the way for Global Capability Centres to establish a presence there.

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 maturing.” Over the past two decades, India’s residential and commercial real estate markets have matured significantly, leading to higher expectations and a greater need for distinct asset differentiation, he said.

Institutional growth and capital influx

The pandemic was a key turning point, when many employees did not come to work.

“So, to get them back to work, you obviously had to entice them with a lot of amenities and features which make them sort of feel comfortable coming into the office. Talent acquisition and getting the best people to work for you are very important criteria for companies now. Making them comfortable, giving them the best space, is getting them excited about coming to work,” Godbole added. Vivek K. Chandy, joint managing partner, JSA Advocates & Solicitors, said it has a lot of money that's there in the market.

“It's much easier to access funds today. Earlier, ECBs (external commercial borrowings) were not permitted in real estate. Today, you can get money from overseas in the form of ECBs,” Chandy said. The newfound availability of acquisition financing has brought more capital into the market, driving the development of higher-quality, premium residential and commercial real estate, he added.

“Raymond Realty addresses the largest segment in the market, which ranges between ₹2 crore, going all the way up to ₹10 crore, ₹12 crore, and even ₹15 crore,” Sahni said.

He emphasized that Raymond’s commitment to its core values of trust and excellence ensures that product quality remains an uncompromising standard for the brand.

“There is a minimum standard in every industry which gets lifted in every cycle, whether it's cars or homes. Every 10 years, the benchmark resets, and nobody wants to go below it. So I don't think it will get reversed or we are anywhere close to that,” he added.

Global standards, future outlook

A key factor driving the premium makeover of office spaces is the rise of global capability centres (GCCs).

“GCCs are really changing how much demand there has been for offices, and that has also had a trickle-down effect on every other part of India. The more GCCs enter the country, the more job creation will be huge and will continue in the coming years, despite AI (artificial intelligence), etc. And so, all of that means that they want the best employees to work for their companies and attract the best talent,” Godbole said. Providing a high-quality environment is essential to a company's core values, he said. This has led to a 'premiumization' of the workplace, designed specifically to attract top-tier talent.

Investment vehicles such as real estate investment trusts, or Reits, have also been a catalyst for the flight to premium drive.

“Reits are regulated and have brought some discipline into the market. That I believe is very good,” Chandy said. While smaller developers have historically cut corners by overbuilding, he expects this trend to subside. He also predicted a shift in the landscape as talent acquisition expands into smaller cities, paving the way for Global Capability Centres to establish a presence there.