While housing sales across the top seven cities declined by 14% year-on-year to around 3.96 lakh units, the total transaction value rose by 6%, crossing ₹6 lakh crore—underscoring the growing dominance of higher-priced homes and premium housing segments.

Fewer Homes Sold, More Money Spent

The divergence between falling volumes and rising transaction value reflects a structural shift in India’s housing demand. After a prolonged period of muted price growth between 2015 and 2019, average residential prices surged by nearly 54% between 2019 and 2024, supported by post-pandemic recovery, infrastructure investment, and consolidation among stronger developers.

In 2025, price appreciation moderated to about 8%, a trend the report describes as healthier and more sustainable, driven largely by end-user demand rather than speculative buying.

Affordable Housing Shrinks, Luxury Expands

One of the most notable shifts highlighted in the report is the sharp decline in affordable housing’s share of overall sales. Homes priced below ₹75 lakh, which accounted for nearly 60% of total sales in 2021, now make up only about 32% of the market.

In contrast, luxury and ultra-luxury housing has expanded rapidly.

“Luxury homes priced above ₹4 crore now contribute nearly 18–20% of total sales across the top seven cities, compared to just 1–2% before the pandemic,” said Anuj Puri, Chairman, ANAROCK Group.

The ultra-luxury segment—homes priced at ₹40 crore and above—saw a sharp 66% jump in sales in 2025, with the Mumbai Metropolitan Region (MMR) accounting for more than 70% of such transactions.

Bigger Homes, Changing Preferences

Buyer preferences have also evolved significantly. The report notes a growing demand for larger homes, with 3BHK and larger units now accounting for nearly 45–50% of demand, up from about 30% in 2018.

Average unit sizes across major cities have expanded by roughly 40% since 2021, driven by post-pandemic lifestyle changes and work-from-home flexibility. The NCR market has seen the most pronounced shift, with average home sizes nearly doubling between 2022 and 2025.

Wellness-oriented layouts, lifestyle amenities, and low-density developments are increasingly influencing purchase decisions, particularly in Tier I cities, while Tier II cities are gradually gaining traction.

Supply Side Sees Institutionalisation

On the supply front, India’s residential market is becoming increasingly institutionalised. Listed and Grade-A developers now account for nearly 45% of total residential supply, up from 28% five years ago.

This consolidation reflects stronger balance sheets, improved governance, better execution capabilities, and rising buyer confidence in established brands.

Over the past five years, approximately 12,700 acres of land have been transacted across India, with nearly 60% earmarked for residential development, signalling long-term confidence in housing demand.

Macro Fundamentals Remain Supportive

The report highlights strong macroeconomic tailwinds supporting the sector’s long-term outlook. Private consumption continues to contribute nearly 60% of India’s GDP, while government capital expenditure has nearly tripled since FY19. The banking system remains stable, with net NPAs at multi-decade lows.

Importantly, India’s mortgage-to-GDP ratio stands at just ~11%, significantly lower than global peers—indicating substantial headroom for housing finance growth.

As India moves toward becoming a USD 7.3 trillion economy, the report concludes that residential real estate is no longer merely a cyclical sector but a structural pillar of economic growth, capital formation, and urban transformation.

Also Read: Will the Housing Market Create Another Peak in 2024?

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Annual Price Surge of 12%

The report highlights a significant annual growth in housing prices, with an average increase of 12% year-on-year (YoY) across the eight major cities. Delhi NCR recorded the highest YoY growth, with prices surging by 30%, followed closely by Bengaluru.

Quarterly Price Increases: Delhi NCR and Bengaluru Lead

Delhi NCR witnessed the highest quarterly price rise at 16%, driven by substantial price hikes in micro-markets such as Dwarka Expressway and Greater Noida. Bengaluru followed with an 8% increase in average housing prices. Notably, Delhi NCR’s luxury segment saw a considerable boost, with 3-4 BHK configurations experiencing up to a 12% QoQ price increase.

Unsold Inventory Declines Amidst Robust Demand

The report also notes a decrease in unsold inventory across most cities, reflecting robust sales activity. Kolkata experienced the highest sequential decline in unsold inventory at 5%, with Pune, Ahmedabad, and Chennai also seeing reductions. Despite these positive trends, MMR reported a slight increase in unsold units due to a surge in new launches.

Pune and Ahmedabad See Notable Reductions in Unsold Units

Pune stood out with the most significant annual drop in unsold inventory, falling by 13%. Ahmedabad and Chennai also reported a decrease in unsold housing units, with annual reductions ranging from 6% to 8%. This reduction indicates a healthy absorption rate in these markets.

Continued Growth and Market Dynamics

Boman Irani, President of CREDAI National, attributed the steady growth to strong homebuyer sentiment and ongoing positive market conditions. He emphasized that the festive season and government infrastructure initiatives are expected to further impact housing prices and inventory levels positively.

Badal Yagnik, CEO of Colliers India, noted that despite rising prices, demand remains robust, supported by stable interest rates and recent budgetary measures. He anticipates that the upcoming festive season will invigorate the housing market with increased sales and new launches.

Micro-Market Insights: Delhi NCR and Bengaluru

In Delhi NCR, Dwarka Expressway and Greater Noida saw impressive quarterly price increases of 35% and 24%, respectively. Bengaluru’s Inner East and Periphery & Outer East micro-markets reported notable price rises, with Inner East experiencing a 25% increase.

Outlook and Future Projections

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted the strong demand in luxury and ultra-luxury segments, particularly for spacious units. The recent changes in long-term capital gains tax are expected to boost investor and homeowner sentiment, further supporting market growth.

As India approaches the festive season, industry stakeholders will closely monitor new launches and housing stock, anticipating continued momentum in the residential real estate sector.

Also Read: CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami

The post Housing Prices Rise Across Top Indian Cities, Reports CREDAI-Colliers-Liases Foras appeared first on Square Feat India.