Summary of this article
Housing sales cross 6 lakh units in 2025.
Premium homes dominate residential market demand.
Metro cities lead real estate sales growth.
India’s residential real estate market had witnessed a remarkable surge in 2025, with luxury and ultra-premium projects, affordable housing and Tier-II and Tier-III cities coming up as the newfound focus of homebuyers. Housing sales in the year crossed 6 lakh units and reached an estimated value of Rs 8.4 lakh crore. The performance of the sector is a signal towards a maturing market where homebuyers are reshaping their needs and wants.
This reflects a strong demand for premium and ultra-luxury housing projects across major cities in India. This is due to growing urbanisation and rising incomes. Performance like this is highlighted in a report shared by Hindustan Times, citing data shared by CREDAI in collaboration with Loases Foras.
This push in housing sales shows the resilience of India’s real estate sector, irrespective of how the global economic markets have performed. Factors like urbanisation, demographic shifts, developments in infrastructure, and rising desire for homeownership among prospective buyers are driving this surge.
The housing demand in India has been steady over the years, increasing in a humble manner. Catered by the rapid urbanisation initiatives and population growth that continue to push the need to develop more residential projects, especially in the urban areas, as they are the prime hub of employment, healthcare and education. As per the projections shared in the report, the country will require around 93 million more homes by the year 20236. This estimate is given after recognising the population growth and changing household dynamics.
Premium Housing Leads the Growth
The report shared that homes that are priced above Rs 1 crore have accounted for 78 per cent of the total sales in India in the year 2025. This underscores the changing and evolving preference for bigger and amenity-rich homes. Also, in areas that are lifestyle-driven.
Homes priced above Rs 2 crore had contributed to 51 per cent of the overall sales in 2025. The middle-income housing segment (priced between Rs 50 lakh and Rs 1 crore) shared around 16 per cent of the total housing sales. Followed by the affordable segment of housing between Rs 30 lakh and Rs 50 lakh, which marked a share of 5 per cent of the total sales value.
Metro Cities Dominate The Housing Ecosystem
Greater Mumbai led the housing sales streak, which was followed by Hyderabad, Gurugram, Bengaluru, Noida and Greater Noida. These markets continue to benefit from strong employment ecosystems, infrastructure expansion and sustained demand from both end-users and investors.
