India’s residential real estate market witnessed strong value growth in 2025, driven by rising demand for premium housing and lifestyle-oriented developments, according to the CREDAI–Liases Foras Indian Real Estate CY 2025 Report. Primary sales in the builders’ market reached 6.14 lakh units, generating a total transaction value of ₹8.46 lakh crore, a 16% year-on-year increase in value terms, highlighting a structural shift towards higher-value homes and larger living spaces across major urban markets.

While unit sales recorded moderate growth compared to 2024, the sharp rise in transaction value reflects a structural shift toward higher-value homes and premium residential developments, as buyers increasingly prioritise larger living spaces, enhanced amenities and lifestyle-driven communities.

On the supply side, developers maintained a calibrated approach to expansion, aligning new launches with demand trends. New residential launches across the 50 cities stood at approximately 4.99 lakhs units during the year, while unsold inventory across these markets was estimated at around 9.63 lakhs units, indicating a relatively stable inventory pipeline and balanced supply conditions across key urban centres.

A key trend highlighted in the report is the strong dominance of premium housing in India’s residential market. The ultra-luxury segment (₹2 crores and above) leads with 51% of the total sales value, followed by the luxury segment (₹1 crores–₹2 crores) contributing 27%, underscoring robust demand for high-value homes. The mid-segment (₹50 lakhs–₹1 crores) accounts for around 16% of the sales value, reflecting steady demand in this category. Meanwhile, the affordable segment (₹30 lakhs–₹50 lakhs) contributes about 5%, while Priority Sector Lending (PSL) homes below ₹30 lakhs account for just 1%, indicating that the overall market remains heavily skewed toward premium housing.

The report also underscores the expanding economic significance of the sector. India’s overall real estate industry is currently valued at approximately ₹23.5 trillion, accounting for 7.1% of the country’s GDP. The residential segment alone contributes nearly 83% of this value, estimated at around ₹19.5 trillion, highlighting the sector’s central role in urban development, employment generation and capital formation.

Metropolitan markets continued to anchor overall performance. In terms of sales value, Greater Mumbai led the market with ₹1,33,005 crores, followed by Hyderabad (₹1,08,406 crores), Gurgaon (₹1,07,096 crores), Bangalore (₹1,02,240 crores), and Noida & Greater Noida (₹42,267 crores). These markets continue to benefit from strong employment ecosystems, infrastructure expansion and sustained demand from both end-users and investors.

The report also notes steady price appreciation across several markets. Bangalore recorded the highest growth in the House Price Index (HPI) in 2025, followed by strong performance in Hyderabad, Ahmedabad, Pune and Greater Mumbai, reflecting robust demand and sustained absorption across key urban markets.

Commenting on the report, Shekhar Patel, President, CREDAI, said: “The 2025 numbers mark more than a statistical milestone, they reflect a fundamental shift in how India lives, invests and aspires. When 78% of sales value comes from homes priced above ₹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 such as Gati Shakti. Tier-2, 3 and 4 cities are no longer peripheral; they are emerging as engines of economic opportunity. At CREDAI, we see this premium-led, infrastructure-backed growth as the foundation for sustainable urbanisation that will define the next decade. Our industry stands ready to partner with policymakers to ensure this momentum translates into quality homes, organised development and inclusive cities for every aspiring Indian family.”

Commenting on the report, Pankaj Kapoor, Managing Director, Liases Foras, said: “Top metro cities continue to dominate India’s housing market in 2025 in sales, value and supply. However, Tier-2 cities are increasingly emerging as important growth centres in the residential real estate sector. Better connectivity, expanding employment hubs, and infrastructure-driven initiatives like the government’s City Economic Regions (CERs) are boosting housing demand in these markets for both end-users and investors. With relatively buoyant supply pipelines and steady price appreciation, Tier-2 cities present attractive opportunities for developers and investors, positioning them as key contributors to India’s next phase of urban housing growth.”

The report further highlights that expanding urban infrastructure, improving connectivity and strong economic growth across cities are reshaping India’s residential real estate landscape. As aspirational homeownership continues to rise and demand increasingly shifts toward larger and premium homes, both metropolitan hubs and emerging cities are expected to play a significant role in driving the sector’s next phase of growth.