NEW DELHI: Housing sales in the top seven cities experienced a 14% decline year-on-year, totaling approximately 3.96 lakh units in 2025, according to a report from the Indian Chamber of Commerce (ICC) and Anarock. Despite the drop in sales volume, the overall transaction value grew by 6%, exceeding ₹6 lakh crore. This trend highlights a significant shift in urban housing demand.
After a period of stagnant price growth from 2015 to 2019, residential prices surged nearly 54% from 2019 to 2024 due to post-pandemic recovery, infrastructure enhancements, and consolidation among major developers. In 2025, price growth moderated to an estimated 8%.
Homes priced below ₹75 lakh, which represented almost 60% of sales in 2021, now account for only about 32% of transactions. Conversely, residences priced above ₹4 crore comprise around 18–20% of total sales across the top seven cities, compared to just 1–2% before the pandemic.
Anuj Puri, chairman of Anarock Group, stated, “Sales in the ultra-luxury segment—homes priced at ₹40 crore and above—saw a remarkable ~66% increase in 2025, with the Mumbai Metropolitan Region (MMMR) responsible for over 70% of these transactions.”
The share of 3BHK and larger units has risen to nearly 45–50%, up from about 30% in 2018. Since 2021, the average unit size across major cities has grown by around 40%, with the National Capital Region (NCR) experiencing one of the most significant increases, where home sizes have nearly doubled from 2022 to 2025.
On the supply side, the residential market is becoming increasingly institutionalized, with listed and grade-A developers now representing about 45% of the total residential supply, a rise from 28% five years ago. Over the last five years, approximately 12,700 acres of land have been transacted nationwide, with nearly 60% allocated for residential development.
The report emphasizes that macroeconomic fundamentals remain supportive of the sector’s long-term prospects. Private consumption makes up nearly 60% of India’s GDP, government capital expenditure has tripled since FY19, and the banking sector maintains stability with net NPAs at multi-decade lows. Furthermore, India’s mortgage-to-GDP ratio is roughly 11%, significantly lower than that of global peers, indicating considerable potential for growth in housing finance.
