H1CY’25 Snapshot from CRE Matrix
India’s Tier 1 housing market recorded an all-time high of ₹3.6 lakh Cr. in primary residential sales during H1CY’25, reflecting robust demand despite a dip in overall unit volumes. Approximately 2.54 lakh units were sold during the period, down ~6% from 2.70 lakh units in H1CY’24. This decline in sales volume was more than offset by a sharp rise in average ticket sizes from ₹1.24 Cr. to ₹1.42 Cr. in H1CY’25 pointing to a clear consumer shift toward larger, higher-value homes.
NCR led the market in revenue terms, contributing ~₹92,000 Cr., or 26% of pan-India Tier 1 city sales in value terms in H1CY’25. The region also recorded the highest value growth, at approximately 21%, largely driven by luxury housing in Gurugram. High-value transactions above ₹3Cr. bracket were concentrated in emerging corridors such as Dwarka Expressway and Golf Course Extension Road, where infrastructure upgrades and brand-driven launches have reshaped buyer preferences.
MMR followed closely with a 23% market share, continuing its dominance in the upper-mid and luxury segments. While launches in the region remained muted, deal sizes stayed elevated, supported by end-user demand. Hyderabad and Bengaluru came in next, contributing 16% and 14% of the national Tier 1 cities’ revenue, respectively. Hyderabad recorded one of the highest average deal sizes at ₹1.84 Cr., second only to NCR, which had an average deal size of ₹3.66 Cr. in H1CY’25. Bengaluru’s shift toward apartments in the ₹1.5–3 Cr. range kept both markets active and resilient.
Despite strong demand, new launches across Tier 1 cities declined for the second consecutive cycle. However, not all cities followed this trend — markets like NCR, Chennai, Hyderabad, and Bengaluru bucked the pattern, recording either stable or increased launch activity. Around 2.78 lakh units were launched in H1CY’25 — down ~8% from 3.02 lakh units in H1CY’24. Developers appear to be exercising caution, focusing on execution and inventory absorption rather than aggressive expansion. This tightening of fresh supply, combined with rising ticket sizes, is likely to keep inventory levels in check through H2.
The widening gap between volume and value makes one thing clear: India’s top housing markets are no longer chasing numbers — they are chasing quality. Buyers are willing to spend more, but they are also more selective, preferring projects with trusted developers, better locations, and full- stack amenities. This premiumization trend, already visible in cities like Gurugram, Mumbai, and Hyderabad, is setting the tone for the rest of 2025.
With the festive season ahead, H2CY’25 is expected to hold steady, supported by a pipeline of high-value launches and continued urban housing demand. However, signs of a cooling market are beginning to emerge — with moderated launch activity, fewer units sold, and buyers becoming more selective. The shift from affordable volume to value-led growth is evident, but sustaining this momentum will require careful market calibration.
Abhishek Kiran Gupta
CEO, CRE Matrix
abhishekkirangupta@crematrix.com
