Residential Real Estate: Rising Demand and Transformative Growth in India’s Top Cities

India’s luxury housing market has entered an era of unprecedented growth, as evidenced by significant increases in average ticket sizes and total sales values across the top seven metropolitan cities. A detailed analysis by CREDAI-MCHI’s research team sheds light on how urban housing markets are evolving to accommodate the surge in high-end property demand.

Between April and September 2024 (H1 FY2025), sales data revealed over 227,400 housing units valued at approximately ₹279,309 crore. This marks an 18% increase in total sales value compared to the same period in FY2024, despite a modest 3% decline in the total number of units sold. The average price of homes sold across these cities rose sharply to ₹1.23 crore in H1 FY2025, up from ₹1 crore in H1 FY2024.

This comprehensive review dives deep into the performance of India’s leading real estate markets, presenting a statistical breakdown of their transformative growth.

Key Highlights Across Major Urban Markets

Aggregate Sales Value: Total sales value across the top seven cities surged by 18% in H1 FY2025, reaching ₹279,309 crore compared to ₹235,800 crore in H1 FY2024.

Average Ticket Size Growth: Average home prices across all cities increased to ₹1.23 crore in H1 FY2025 from ₹1 crore in H1 FY2024, reflecting a growing preference for premium properties.

City-Wise Analysis: A Statistical Breakdown

National Capital Region (NCR): Market Leader in Growth

Average Ticket Size: Grew by 56%, from ₹93 lakh in H1 FY2024 to ₹1.45 crore in H1 FY2025.

Sales Value: Jumped by 55%, from ₹30,154 crore to ₹46,611 crore.

Units Sold: Slight decline of 1%, from 32,315 units to 32,120 units.

The data underscores a shift towards higher-value properties, making NCR the standout performer in terms of average ticket size growth.

Mumbai Metropolitan Region (MMR): Consistent Dominance

Average Ticket Size: Remained stable at ₹1.47 crore in both periods.

Sales Value: Increased by 2%, from ₹1,12,356 crore to ₹1,14,529 crore.

Units Sold: Grew marginally by 2%, from 76,410 units to 77,735 units.

MMR’s stability highlights its position as India’s most mature real estate market.

Bengaluru: A Hub of Expanding Luxury

Average Ticket Size: Increased by 44%, from ₹84 lakh to ₹1.21 crore.

Sales Value: Rose by 44%, from ₹26,274 crore to ₹37,863 crore.

Units Sold: Virtually unchanged, with 31,440 units in H1 FY2024 and 31,381 units in H1 FY2025.

Bengaluru has witnessed a steady transition towards premium housing, driven by its affluent buyer base.

Hyderabad: Rising Prominence

Average Ticket Size: Jumped by 37%, from ₹84 lakh to ₹1.15 crore.

Sales Value: Increased by 28%, from ₹25,059 crore to ₹31,993 crore.

Units Sold: Declined by 7%, from 29,940 units to 27,820 units.

Hyderabad’s luxury real estate market continues to gain momentum, focusing on value-driven growth.

Chennai: Focus on High-Value Transactions

Average Ticket Size: Rose by 31%, from ₹72 lakh to ₹95 lakh.

Sales Value: Increased by 20%, from ₹7,516 crore to ₹9,015 crore.

Units Sold: Dropped by 9%, from 10,435 units to 9,531 units.

Chennai’s growth highlights its emerging role in the luxury housing sector, emphasizing quality over volume.

Pune: Affordable Luxury on the Rise

Average Ticket Size: Increased by 29%, from ₹66 lakh to ₹85 lakh.

Sales Value: Jumped by 19%, from ₹28,590 crore to ₹34,033 crore.

Units Sold: Declined by 8%, from 43,560 units to 40,190 units.

Pune’s market demonstrates strong growth in the affordable luxury segment, catering to aspirational buyers.

Kolkata: Steady but Subdued

Average Ticket Size: Grew by 16%, from ₹53 lakh to ₹61 lakh.

Sales Value: Declined from ₹5,851 crore to ₹5,265 crore.

Units Sold: Dropped from 11,095 units to 8,620 units.

Kolkata’s market reflects cautious buyer sentiment, with a stronger focus on mid-range properties.

Key Trends Driving Growth in Luxury Housing

Shift Towards Premium Living: Across the board, buyers are demonstrating a clear preference for larger, well-equipped homes in prime locations.

Resilient Demand for High-End Properties: The consistent rise in sales value reflects robust demand, even in markets where unit sales declined.

Regional Variations in Growth: Cities like NCR, Bengaluru, and Hyderabad have emerged as leaders in ticket size growth, showcasing their appeal among affluent buyers.

Policy and Legal Perspectives

The growth in the luxury real estate market underscores the importance of enabling policies and legal frameworks to support further development. Key recommendations include:

Streamlined Approvals for High-Value Projects: Simplifying regulatory processes can accelerate project timelines and reduce costs for developers.

Incentives for Luxury Buyers: Tax breaks and flexible financing options can encourage investment in premium housing.

Transparent Transaction Mechanisms: Ensuring clarity in property titles, RERA compliance, and valuation processes will boost buyer confidence.

Future Outlook

The housing segment in India’s top cities is poised for continued expansion. With increasing disposable incomes, shifting buyer preferences, and robust market fundamentals, high-end real estate is expected to remain a key growth driver. Developers must innovate to meet evolving buyer expectations, focusing on design excellence, sustainability, and world-class amenities.

This comprehensive analysis from CREDAI-MCHI highlights how India’s top cities are redefining urban living through luxury real estate. By harnessing these trends and fostering collaboration among stakeholders, the housing sector can unlock unprecedented opportunities for growth.

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