Housing Market in Tier 1 Cities Witnessed Strong Demand in H1 CY25, ₹3.6 Lakh Cr Sales: Report

New Delhi, July 31, 2025: Primary housing sales in Tier 1 cities reached a record-breaking INR 3.6 lakh crore in the first half of calendar year 2025 (H1 CY25), marking a nine per cent increase from INR 3.3 lakh crore in H1 CY24.

According to the CREDAI-CRE Matrix ‘CREDAI India Housing Report July 2025’, despite a 4 per cent decline in units sold (from 2.7 lakh to 2.54 lakh), a 14 per cent rise in average ticket size from INR 1.24 crore to INR 1.42 crore underscores a growing consumer preference for premium and luxury homes.

The report highlights significant regional variations with NCR leading the market with a 26 per cent revenue share, fuelled by a 21 per cent increase in sales value and a 32 per cent surge in average ticket size. Luxury flats priced above INR 3 crore accounted for 73 per cent of NCR’s sales value despite a modest volume of 25,000 units sold.

The Mumbai Metropolitan Region (MMR) followed closely with a 23  per cent revenue share, recording a 9 per cent growth in sales value and 75,000 units sold with a 16 per cent increase in average ticket size. The share of homes priced above ₹3.5 crore in MMR rose from 29 per cent to 34 per cent, reflecting a strong tilt toward ultra-premium housing.

In the south, Chennai emerged as a standout performer, achieving a 23 per cent increase in sales value with 11,000 units sold and a 12 per cent rise in average ticket size. New launches in Chennai grew from 14,000 to 19,000 units though the market share of homes below INR 70 lakh dropped from 23 per cent to 17 per cent.

Bengaluru maintained steady growth with a 4 per cent increase in sales value and 30,000 units sold, supported by a 17 per cent rise in ticket size. However, the share of homes priced between INR 70 lakh and INR 1.5 crore declined from 38 per cent to 32 per cent.

Hyderabad, while recording a modest 2 per cent increase in sales value, saw an 11 per cent drop in units sold (30,000 units) but a doubling of new launches from 23,000 to 42,000 units, indicating developer optimism despite slower absorption.

Ahmedabad matched NCR’s unit sales with approximately 25,000 units sold, posting a 10 per cent increase in sales value and a 7 per cent rise in ticket size. The city saw a sharp decline in new launches, from 31,000 to 11,000 units, yet affordable homes under INR 70 lakh gained a 2 per cent market share, rising from 27 per cent to 29 per cent.

Kolkata reported a 17 per cent growth in sales value with 10,000 units sold and a 19 per cent increase in ticket size. The market share of homes above INR 3 crore surged from 14 per cent to 26 per cent though 53per cent of the market remained below INR 1.5 crore, reflecting a balanced buyer base.

In contrast, Pune faced challenges, with an 8.5 per cent decline in sales value and a 14 per cent drop in units sold (45,000 units). New launches in Pune fell from 61,000 to 39,000 units, and the mid-market segment (INR 50 lakh– INR1 crore) saw a five per cent decline in share though ticket sizes rose by seven per cent.

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. However, the robust growth in transaction values highlights the sector’s resilience and the increasing premiumisation of the market.

“We are 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,” said Shekhar Patel, President, CREDAI.

“A 21 per cent 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 also visible in markets like Kolkata and Chennai, where value growth outpaces unit sales.”

It marks a defining moment for real estate—one shaped by ambition, confidence and long-term vision, he added.

Abhishek Kiran Gupta, CEO and Co-founder, CRE Matrix, said, “India’s Tier 1 housing markets have entered a new phase of value-driven growth. While unit sales saw a marginal dip in H1 CY25, the INR 3.6 lakh crore in revenue—an all-time high—signals a clear consumer pivot toward larger, more premium homes.”

He added, “The 14 per cent rise in average ticket size reflects this structural shift in buyer sentiment. NCR leading the charge with 26 per cent revenue share, followed by MMR, further validates that aspiration and affordability are aligning at scale. As data suggests, India’s residential real estate story is no longer just about quantity—it’s about quality, confidence, and lifestyle.”

The housing market is moving in a strong and positive direction with growing demand for better and bigger homes. The rise in home values and buyer interest shows a confident and evolving real estate landscape across cities.