Tier-1 cities see housing sales worth Rs 3.60 lakh crore in H1CY25

Bengaluru: The housing market across Tier-1 cities witnessed a strong surge in demand in the first half of the year 2025, with primary housing sales reaching a record Rs 3.60 lakh crore.

During the period January to June 2025, National Capital Region (NCR) led in revenue contribution with a 26 per cent share, followed closely by Mumbai Metropolitan Region (MMR) at 23 per cent, according to a new report by CREDAI.

Despite this, new launches have been on a declining trend over the past one and a half years. The number of units sold saw a modest decline of approximately 4 per cent from 2.67 lakh units in the first half of 2024 to 2.53 lakh units in the first half of 2025.

This disparity between revenue and volume growth suggests a significant rise in average ticket size, with the average unit price increasing from Rs 1.24 crore in H1 CY24 to Rs 1.42 crore in H1CY25.

A joint report by the Confederation of Real Estate Developers' Association (CREDAI), and CRE Matrix, revealed significant regional variations, with NCR leading the market with a 26 per cent revenue share, fueled by a 21 per cent increase in sales value and a 32 per cent surge in average ticket size.

Luxury flats priced above Rs 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 Rs 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 Rs 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 Rs 70 lakh and Rs 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 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.

The market share of homes above Rs 3 crore surged from 14 per cent to 26 per cent, though 53 per cent of the market remained below Rs 1.5 crore, reflecting a balanced buyer base. In contrast, Pune faced challenges, with an 8.5 per cent decline in sales value and 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 (Rs 50 lakh–Rs 1 crore) saw a 5 per cent decline in share, though ticket sizes rose by 7 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.

Commenting on the report, Shekhar Patel, President, CREDAI, said, “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."