Premium Housing Drives India’s Real Estate Market to ₹8.46 Lakh Crore in 2025: CREDAI–Liases Foras Report

New Delhi, March 14, 2026: The Indian residential real estate market has demonstrated significant value growth in 2025, driven by a structural shift toward premium and luxury housing. According to the “Indian Real Estate CY 2025 Report,” released by the Confederation of Real Estate Developers’ Associations of India (CREDAI) in partnership with Liases Foras, primary sales in the builders’ market reached 6,14,218 units. This volume translated into a total sales value of ₹8.46 lakh crore, marking a 16% year-on-year increase in value terms despite moderate growth in unit sales.

The report, which assesses trends across 50 major Indian cities, highlights a clear dominance of high-value homes. The ultra-luxury segment (priced at ₹2 crore and above) accounted for 51% of the total sales value, while the luxury segment (₹1 crore–₹2 crore) contributed 27%. In contrast, the mid-segment represented 16% of value, with the affordable and Priority Sector Lending (PSL) categories combined contributing just 6%. This data underscores a market heavily skewed toward buyer aspirations for larger living spaces and enhanced lifestyle amenities, a press statement from CREDAI said.  

Supply dynamics remained stable as developers adopted a calibrated approach to new launches. Approximately 4.99 lakh new units were introduced during the year, while unsold inventory across the 50 cities stood at 9.63 lakh units. On a macroeconomic scale, the real estate industry is now valued at approximately ₹23.5 trillion, representing 7.1% of India’s GDP. The residential segment remains the cornerstone of the industry, contributing nearly 83% of its total value at ₹19.5 trillion.

Metropolitan hubs continue to anchor the sector’s financial performance. Greater Mumbai led the country with a sales value of ₹1,33,005 crore, followed by Hyderabad at ₹1,08,406 crore and Gurgaon at ₹1,07,096 crore. Bangalore and the Noida/Greater Noida region also crossed significant milestones, benefiting from strong employment ecosystems and infrastructure expansion. Bangalore notably recorded the highest growth in the House Price Index (HPI) for the year, followed by Hyderabad and Ahmedabad.

Commenting on the findings, Shekhar Patel, President of CREDAI, stated: “The 2025 numbers mark more than a statistical milestone, they reflect a fundamental shift in how India lives, invests and aspires. When 78% of sales value comes from homes priced above ₹1 crore and ultra-luxury alone drives over half the value, it signals rising household wealth, maturing investor confidence and the success of urban infrastructure initiatives such as Gati Shakti. Tier-2, 3 and 4 cities are no longer peripheral; they are emerging as engines of economic opportunity. At CREDAI, we see this premium-led, infrastructure-backed growth as the foundation for sustainable urbanisation that will define the next decade. Our industry stands ready to partner with policymakers to ensure this momentum translates into quality homes, organised development and inclusive cities for every aspiring Indian family.”Pankaj Kapoor, Managing Director of Liases Foras, noted the rising influence of emerging markets: “Top metro cities continue to dominate India’s housing market in 2025 in sales, value and supply. However, Tier-2 cities are increasingly emerging as important