Luxury, premium homes drive record ₹3.6 lakh crore sales despite volume dip in H1 2025

India's housing market saw a 4% decline in units sold at 2.54 lakh across Tier-1 cities in the first half of Calendar Year 2025 (H1 CY25) but the industry witnessed record-breaking sales at ₹3.6 lakh crore in primary housing sales, driven by premiumisation, a 9% growth from the sale period last year, according to the latest CREDAI India Housing Report July 2025 report, prepared jointly with CRE Matrix. The average ticket size rose 14% from ₹1.24 crore to ₹1.42 crore,  a clear indication of a shifting trend towards premium and luxury homes in India's housing market.

What are the key trends across top 8 cities?

NCR led with a 26% revenue share, fuelled by a 21% increase in sales value and a 32% surge in average ticket size. Flats priced above ₹3 crore accounted for 73% of NCR’s sales value, despite a modest volume of 25,000 units sold. The Mumbai Metropolitan Region (MMR) followed closely with a 23% revenue share, recording a 9% growth in sales value and 75,000 units sold, with a 16% increase in average ticket size. The share of homes priced above ₹3.5 crore in MMR rose from 29% to 34%, reflecting a strong tilt toward ultra-premium housing.

In the south, Chennai emerged as a standout performer, achieving a 23% increase in sales value with 11,000 units sold and a 12% rise in average ticket size. New launches in Chennai grew from 14,000 to 19,000 units, though the market share of homes below ₹70 lakh dropped from 23% to 17%. Bengaluru maintained steady growth with a 4% increase in sales value and 30,000 units sold, supported by a 17% rise in ticket size.  Hyderabad, while recording a modest 2% increase in sales value, saw an 11% drop in units sold (30,000 units) but a doubling of new launches from 23,000 to 42,000 units.

Ahmedabad matched NCR’s unit sales with approximately 25,000 units sold, posting a 10% increase in sales value and a 7% rise in ticket size. The city saw a sharp decline in new launches, from 31,000 to 11,000 units. Kolkata reported a 17% growth in sales value with 10,000 units sold and a 19% increase in ticket size. The market share of homes above ₹3 crore surged from 14% to 26%. In contrast, Pune faced challenges, with an 8.5% decline in sales value and a 14% drop in units sold (45,000 units). New launches in Pune fell from 61,000 to 39,000 units.

Why is there a consistent decline in new launches?

The decline in new launches across most cities, from 98,000 in H2 CY24 to 82,000 in H1 CY25, signals a cautious approach by developers amid rising costs, according to the top real estate association's report. However, the robust growth in transaction values highlights the sector’s resilience and the increasing premiumisation.

“We are witnessing a decisive shift in homebuyer preferences across India. The demand is moving towards larger, better-located, and more premium homes, reflecting rising aspirations and improved purchasing power. A 21% growth in NCR’s housing value, despite lower volumes, is a clear indicator that quality and location are now more important than quantity," says Shekhar Patel, President, CREDAI.  

The premiumisation trend is visible in markets like Kolkata and Chennai as well, where value growth outpaces unit sales. Patel believes it marks a defining moment for Indian real estate—one shaped by ambition, confidence, and long-term vision.

People are increasingly looking at houses that are driven by value. "While unit sales saw a marginal dip in H1 CY’25, the ₹3.6 lakh crore in revenue—an all-time high—signals a clear consumer pivot toward larger, more premium homes," says Abhishek Kiran Gupta, CEO & Co-Founder, CRE Matrix.

He believes that the 14% rise in average ticket size reflects a structural shift in buyer sentiment. "India’s residential real estate story is no longer just about quantity—it’s about quality, confidence, and lifestyle.”

What's the share of houses over ₹1 crore in the overall market?

India's luxury real estate market is booming, outpacing the momentum in the mass segment. According to the latest data by real estate consultancy JLL, apartments valued at ₹1 crore and above represented around 62% of total sales during the first half of 2025, marking a significant increase from their 51% market share during the same period last year.

The rise in contribution was largely driven by a 14% growth in demand for the ₹3.0-5.0 crore housing segment during the same period, while the ₹5.0 crore and above segment registered an 8% growth in demand. Delhi-NCR led the year-on-year property price growth, with Bengaluru and Chennai recording double-digit year-on-year growth in capital value during Q2 2025.