India's Housing Market: Sales Dip, Value Soars Amid Rising Aspirations and Urban Development

Housing sales in 50 Indian cities fell 3% to 6.14 lakh units in 2025, but the value of these sales rose by 16% to Rs 8.46 lakh crore, according to a report by CREDAI and Liases Foras. This trend underscores the resilience of the housing market, driven by rising buyer aspirations, increasing premiumisation of housing demand, and sustained infrastructure-led urban development.

On Friday, the Confederation of Real Estate Developers' Associations of India (CREDAI) and research firm Liases Foras released a comprehensive report on residential real estate trends across 50 major cities in India. The report highlights a significant shift in the housing market, with a strong focus on higher-value properties and the growing importance of Tier-2, 3, and 4 cities.

According to the data, housing sales in primary markets of these 50 major cities fell to 6,14,235 units in 2025 from 6,33,134 units in the preceding year. However, in value terms, sales grew to Rs 8,46,648 crore last year, an increase of 16% from Rs 7,29,112 crore during the 2024 calendar year.

Shekhar Patel, President of CREDAI, emphasized the significance of these numbers, stating, 'The 2025 numbers mark more than a statistical milestone; they reflect a fundamental shift in how India lives, invests, and aspires. When 78 per cent of sales value comes from homes priced above Rs 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.'

Patel also noted the growing importance of Tier-2, 3, and 4 cities, which are no longer peripheral but are emerging as engines of economic opportunity. These cities are witnessing a surge in housing demand due to better connectivity, expanding employment hubs, and infrastructure-driven initiatives.

Pankaj Kapoor, Managing Director of Liases Foras, added, 'Top metro cities continue to dominate India's housing market in 2025 in terms of sales, value, and supply. However, Tier-2 cities are increasingly emerging as important growth centres in the residential real estate sector.'

The report further highlights that the premiumisation of housing demand is a key driver of the market's resilience. This trend is evident in the increasing number of high-value transactions, particularly in the ultra-luxury segment. The growing demand for better living standards and the availability of high-quality infrastructure are key factors driving this trend.

In conclusion, while the volume of housing sales in India's top 50 cities has slightly decreased, the overall value of these transactions has significantly increased. This shift reflects a broader trend of rising household wealth and growing investor confidence, driven by ongoing urban development and improved infrastructure. The emerging importance of Tier-2, 3, and 4 cities further underscores the dynamic nature of India's housing market and its potential for future growth.