India's Top 50 Cities Witness 3% Decline in Housing Sales, but Transaction Value Surges 16%

Housing sales across the primary residential markets of India's 50 major cities declined by 3 per cent in 2025 to around 6.14 lakh units, while the total value of transactions increased significantly during the same period, according to a joint report released by the Confederation of Real Estate Developers Associations of India (CREDAI) and real estate research firm Liases Foras.

The report on residential real estate trends indicated that housing sales across these cities fell to 6,14,235 units during 2025 from 6,33,134 units recorded during the previous year. Despite the marginal decline in the number of homes sold, the overall transaction value of residential sales increased by 16 per cent.

According to the data, the total value of housing sales across the top 50 cities reached approximately INR 8,46,648 crore in 2025, compared with INR 7,29,112 crore recorded during the previous year.

The report noted that the increase in overall sales value was largely driven by a shift towards higher-priced housing segments. Demand for premium and luxury homes has increased in recent years as homebuyers with higher purchasing power have increasingly entered the residential market.

Shekhar Patel, President of CREDAI, indicated that the housing market data reflects broader changes in residential demand patterns across the country. He stated that a large proportion of the total sales value now comes from homes priced above INR 1 crore, suggesting a rise in household wealth levels and stronger investor confidence in the real estate sector.

Patel also noted that ultra-luxury housing developments have been responsible for more than half of the total sales value recorded across the market. According to him, the trend reflects changing aspirations among homebuyers as well as the impact of urban infrastructure development across several cities.

The report further highlighted that the structure of housing demand in India is gradually evolving beyond major metropolitan regions. While the largest cities continue to account for a substantial share of residential sales, smaller cities are gaining importance within the housing market.

Pankaj Kapoor, Managing Director of Liases Foras, stated that the leading metropolitan markets continue to dominate residential real estate activity in terms of sales volumes, transaction value, and new supply. However, he indicated that Tier II cities are increasingly emerging as important centres for residential development.

According to Kapoor, improvements in connectivity, the expansion of employment hubs, and ongoing infrastructure investments are contributing to stronger housing demand in these emerging markets. These factors are attracting both end-users seeking primary residences and investors exploring property opportunities beyond the largest metropolitan centres.

The report also suggested that the continued development of infrastructure projects and economic activity across multiple urban centres is likely to broaden the residential demand base in the coming years. As employment and connectivity expand across different regions, housing demand is expected to become more geographically diversified across the country's urban markets.