India Housing Market 2025 Sees Premium Surge, Affordable Demand Slips

India’s housing market is entering a new phase marked by steady volumes and a decisive tilt toward higher-ticket homes. Total residential sales in 2025 held firm at 3.48 lakh units, highlighting stability despite higher prices. The significant shift, however, is structural. Homes priced above Rs 1 crore now account for half of all transactions, while affordable housing demand declined 17 percent year on year.

In Mumbai, the country’s most expensive market, momentum remains intact. The city recorded 97,188 units sold in 2025, up 1 percent from the previous year. Sales in the second half rose 3 percent even as ticket sizes climbed, reflecting sustained appetite for premium inventory.

Bengaluru posted a stable performance with 55,373 units sold, largely flat year on year. Pune experienced a modest 3 percent annual decline. In both markets, demand is shifting toward larger and higher-priced homes, while mid-segment activity shows signs of fatigue.

The sharpest decline occurred in Delhi NCR, where sales dropped 9 percent in 2025. Affordable housing in the region fell 25 percent, indicating stress in the lower ticket category. Developers appear cautious in launching sub-Rs 50 lakh inventory amid cost pressures and thinner margins.

Hyderabad emerged as a standout performer with 12 percent annual growth. Second-half sales surged 13 percent, supported by strong traction in premium projects. Ahmedabad and Kolkata recorded moderate growth of 4 percent and 2 percent, respectively, reflecting stable end-user demand.

Chennai presented a mixed picture. While second-half sales rose 7 percent, full-year sales slipped 3 percent.

For buyers, the implications are clear. Affordable supply is tightening across major cities, while premium inventory continues to expand. The market is not slowing uniformly, but it is shifting upward in price.