The Indian housing market in Tier-1 cities saw a remarkable surge in demand during the first half of 2025 (H1 CY25), with total sales value hitting a record Rs 3.6 lakh crore), marking a 9 percent increase from Rs 3.3 lakh crore in H1 CY24, according to a joint report by CREDAI and CRE Matrix.
This growth was largely fueled by robust demand in the premium and luxury segments, as homes priced above Rs 1 crore now represent nearly half of all sales.
The National Capital Region (NCR) topped the chart in revenue contribution, accounting for 26 percent of the market share, fueled by a 21 percent increase in sales value and a 32 percent surge in average ticket size. Luxury flats priced above Rs 3 crore accounted for 73 percent of NCR’s sales value, despite a modest volume of 25,000 units sold.
The Mumbai Metropolitan Region (MMR) followed closely with a 23 percent revenue share, recording a 9 percent growth in sales value and 75,000 units sold, with a 16 percent increase in average ticket size. The share of homes priced above Rs 3.5 crore in MMR rose from 29 percent to 34 percent, reflecting a strong tilt toward ultra-premium housing, the report released on July 31, said.
Pune and Hyderabad showed diverging trends, with the latter witnessing a sharp rise in launches and a shift towards luxury housing, while the former witnessed a decline in both sales volume and value, it said.
Ahmedabad and Chennai are emerging as growth cities, with Ahmedabad matching NCR in unit sales (approximately 25,000 units), while Chennai recorded the highest value growth rate at 23 percent.
Ahmedabad posted a 10 percent increase in sales value and a 7 percent rise in ticket size. The city saw a sharp decline in new launches, from 31,000 to 11,000 units, yet affordable homes under Rs 70 lakh gained a 2 percent market share, rising from 27 percent in H1 CY24 to 29 percent in H1 CY25.
New launches in Chennai grew from 14,000 to 19,000 units, though the market share of homes below Rs 70 lakh dropped from 23 percent to 17 percent.
Shekhar Patel, President, CREDAI, said that the real estate sector is witnessing a decisive shift in homebuyer preferences across India. The demand is clearly moving towards larger, better-located, and more premium homes—reflecting rising aspirations and improved purchasing power.
“A 21 percent growth in NCR’s housing value, despite lower volumes, is a clear indicator that quality and location are now more important than quantity. This trend is visible in markets like Kolkata and Chennai as well, where value growth outpaces unit sales. At CREDAI, we remain committed to working closely with policymakers, developers, and financial institutions to support this evolving market,” Patel said.
Bengaluru maintained steady growth with a 4 percent increase in sales value and 30,000 units sold, supported by a 17 percent rise in ticket size. Hyderabad, while recording a modest 2 percent increase in sales value, saw 11 percent drop-in units sold (30,000 units).
Abhishek Kiran Gupta, CEO & Co-Founder, CRE Matrix, said that while unit sales saw a marginal dip in H1 CY25, the Rs 3.6 lakh crore in revenue—an all-time high—signals a clear consumer pivot toward larger, more premium homes. The 14 percent rise in average ticket size reflects this structural shift in buyer sentiment.
Aman Sharma, Founder and Managing Director of Aarize Group, said that the Rs 3.6 lakh crore in housing sales during H1 2025 underscores the robust momentum in India’s real estate market, with Delhi-NCR at the forefront.
"This presents a significant opportunity for developers to deliver high-quality, differentiated offerings. With rapid infrastructure development and rising buyer confidence, we anticipate sustained growth and enduring strength in NCR’s upscale residential segment," he said.
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