As of the end of Q1 2025, unsold homes priced below ₹40 lakh dropped by 19% across the top 7 cities, compared to the same time last year. Meanwhile, homes priced above ₹1.5 crore saw a 24% increase in unsold units.

What’s Happening in the Market?

• Affordable Housing (Below ₹40 lakh):
  • Inventory dropped from 1.40 lakh units to 1.13 lakh units
  • This is mainly due to limited new supply and steady demand from end-users
  • Bengaluru saw the biggest drop at 51%
  • Chennai followed with a 44% decline
  • Hyderabad was the only city where unsold affordable homes went up by 9%
• Luxury Housing (Above ₹1.5 crore):
  • Inventory rose from 91,125 units to 1.13 lakh units
  • Many new luxury homes were launched, but demand hasn’t kept up
  • Chennai and Pune were the only cities to see a decline in luxury stock (4% and 11% respectively)
  • Other cities saw increases, with NCR up 78%, Kolkata up 96%, and Bengaluru up 57%

Middle Segments:

• Mid-range homes (₹40–80 lakh) saw a 10% drop in unsold stock
• Premium homes (₹80 lakh–₹1.5 Cr) remained mostly unchanged

Total Unsold Homes in Top 7 Cities:

As of Q1 2025-end, there were around 5.60 lakh unsold homes across the top cities — a 4% drop from 5.81 lakh units a year ago.

Breakdown by price segment:

Expert View:

Anuj Puri, Chairman of ANAROCK Group, explained:
“Affordable housing suffered the most after COVID-19, but the recent drop in unsold stock shows that buyers are returning. These are mostly end-users looking for real homes, not investors.”

He added, “Luxury housing did very well over the past few years, but now we’re seeing inventory rise. This is due to many new launches, plus some buyer caution because of global economic uncertainty.”

City Snapshot – Affordable Segment (< ₹40 lakh):

Conclusion:

The real estate market is seeing a shift. Budget homes are back in demand, while luxury homes may face some oversupply. Buyers are clearly becoming more cautious, especially in the higher price brackets, while affordable and mid-range homes continue to attract genuine home seekers.

Also Read: Housing Prices Surge in 2024, Delhi NCR Leads with 31% Growth

The post Affordable Homes Selling Faster, Luxury Homes Slowing Down appeared first on Square Feat India.

Despite a slight decline in overall unit sales by 3%, the total sales value has surged by 18%, underscoring a growing demand for luxury homes. In H1 FY2025, approximately 2,27,400 units worth INR 2.79 lakh crore were sold, compared to 2,35,200 units valued at INR 2.36 lakh crore in H1 FY2024.

NCR Leads the Growth

The National Capital Region (NCR) saw the highest growth in average ticket size, up by 56%, from INR 93 lakh in H1 FY2024 to over INR 1.45 crore in H1 FY2025. In this period, NCR sold 32,120 units worth INR 46,611 crore, compared to 32,315 units worth INR 30,154 crore in the previous year. While the number of units sold remained almost the same, the sales value saw a sharp 55% increase.

Steady Growth Across Other Cities

Bengaluru witnessed a 44% jump in average ticket size, from INR 84 lakh in H1 FY2024 to INR 1.21 crore in H1 FY2025. The city saw approximately 31,381 units sold, with a total sales value of INR 37,863 crore, compared to 31,440 units worth INR 26,274 crore in the same period last year.

Hyderabad also saw a significant rise, with the average ticket size increasing by 37% from INR 84 lakh to INR 1.15 crore. The city’s total sales value rose from INR 25,059 crore in H1 FY2024 to INR 31,993 crore in H1 FY2025, although unit sales slightly dropped from 29,940 to 27,820 units.

Chennai and Pune also experienced growth, with average ticket sizes rising by 31% and 29%, respectively. In Chennai, the average price increased from INR 72 lakh to INR 95 lakh, while in Pune, it rose from INR 66 lakh to INR 85 lakh. Both cities saw a dip in the number of units sold, but the sales value remained higher compared to the previous year.

Mumbai Remains Stable

Mumbai, which traditionally sees some of the highest property prices, reported no change in the average ticket size, which remained steady at INR 1.47 crore. The city saw an increase in sales value, from INR 1.12 lakh crore in H1 FY2024 to INR 1.14 lakh crore in H1 FY2025, with unit sales growing marginally from 76,410 to 77,735 units.

Kolkata Sees a Dip in Sales

In contrast to other cities, Kolkata experienced a modest 16% rise in the average ticket size, from INR 53 lakh to INR 61 lakh. However, the number of units sold fell sharply from 11,095 to 8,620, and the total sales value decreased from INR 5,851 crore to INR 5,265 crore.

Conclusion: A Shift Toward Luxury Homes

ANAROCK’s Chairman, Anuj Puri, commented, “The trend toward luxury homes continues to dominate the market, as evident from the rising ticket sizes across major cities. While the overall number of units sold has seen a slight dip, the total sales value has reached new heights, driven by the growing demand for high-end residential properties.”

The data highlights a continuing shift in India’s real estate market toward larger and more expensive homes, driven by post-pandemic demand and an increasingly affluent buyer base. As cities continue to recover from the pandemic’s impact, the luxury housing segment is poised for sustained growth.

Also Read: Lifestyle Amenities Redefine Luxury in Delhi-NCR’s Real Estate Market

The post Luxury Home Sales Surge in India’s Top Cities: Average Ticket Size Rises by 23% in H1 FY25 appeared first on Square Feat India.

Bagaluru in Bengaluru tops the list with an astonishing 90% increase in average residential prices, climbing from INR 4,300 per square foot in 2019 to approximately INR 8,151 per square foot in the first half of 2024. This rapid price growth is attributed to a significant influx of new supply, with around 17,065 units introduced in the area during this period. Notably, over 94% of these new units were in the mid and premium segments, with no new affordable housing added.

Hyderabad’s Kokapet follows closely, with a 89% rise in property prices. The area saw its prices soar from INR 4,750 per square foot in 2019 to INR 9,000 per square foot in early 2024. Approximately 12,920 new units were launched, with more than half of the new supply falling into the ultra-luxury category.

Whitefield, another prominent locality in Bengaluru, recorded an 80% price appreciation, with average prices increasing from INR 4,765 per square foot to INR 8,600 per square foot. The area saw about 18,600 new units introduced, with the majority in the mid and premium categories.

The Dwarka Expressway in the National Capital Region (NCR) ranks fourth, with a 79% increase in average prices. The locality’s prices jumped from INR 5,359 per square foot in 2019 to over INR 9,600 per square foot in the first half of 2024.

Sarjapur Road in Bengaluru, and Bachupally and Tellapur in Hyderabad also feature prominently in the rankings, with price increases of 58%, 57%, and 53% respectively. Other notable mentions include Panvel in the Mumbai Metropolitan Region (MMR) and New Gurugram in NCR, which experienced price rises of 50% and 48%, respectively.

In terms of new housing supply, MMR’s Dombivli was the most active market, with approximately 44,990 new units launched over the past five years. Sarjapur Road in Bengaluru and Panvel in MMR followed, with 36,150 and 34,400 new units respectively.

Anuj Puri, Chairman of ANAROCK Group, commented on the trends, stating, “The acceleration in housing prices, particularly over the past two years, highlights a robust demand coupled with significant new supply. While the commonly held belief that high new supply limits price growth is not always true, our data shows substantial appreciation in many active residential micro-markets.”

Puri also noted that, despite high new supply in some areas, residential prices have continued to rise significantly. For example, Greater Noida West in NCR, with the fifth-highest supply in the region, saw a remarkable 129% increase in prices.

As the real estate market continues to evolve, these trends indicate a dynamic landscape where demand, supply, and pricing are closely intertwined. The data underscores the importance of monitoring micro-market activity for understanding broader market movements.

Also Read: Residential Sales in Top Seven Cities Projected to Grow in FY2025

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