India's Real Estate Market Sees Shift Towards Luxury, High-End Housing

Strategic Insights -

India's housing market has seen a significant shift towards luxury and high-end housing, with the number of home buyers decreasing. According to ANAROCK's latest Q2 2025 PAN India Residential Market Viewpoints report, housing sales in the top 7 cities of India fell by 20% to 96,300 units year-over-year, while average property prices increased by 11%. The average property price across the country has increased from Rs 8,070 per sq.ft. to Rs 8,990, an annual increase of 11%. This divergence between sales and prices points to a larger shift in India's real estate dynamics.

Key Takeaways:

  • Housing sales in the top 7 cities of India fell by 20% to 96,300 units year-over-year, while average property prices increased by 11%.
  • Cities like Mumbai and Pune saw a 25-27% drop in sales, while Hyderabad and NCR saw a 27% and 14% drop, respectively.
  • Chennai was the only city to see a 13% annual growth and a 40% increase from the previous quarter.
  • NCR recorded a 27% increase in prices, followed by Bangalore with a 12% rise.
  • Hyderabad, Chennai, and Pune also witnessed a 6-11% increase in prices.
  • The average property price across the country has increased from Rs 8,070 per sq.ft. to Rs 8,990, an annual increase of 11%.
  • Luxury housing accounted for 27% of all new launches in Q2 2025, followed by high-end and mid-end segments at 21% each.
  • Affordable housing saw stagnation, contributing just 12% to total new launches.
  • Inventory across the top 7 cities fell marginally by 3% year-over-year (YoY) to 5.62 lakh units.

Statistics:

  • Housing sales in the top 7 cities of India fell by 20% to 96,300 units year-over-year.
  • Average property prices increased by 11% from Rs 8,070 per sq.ft. to Rs 8,990.
  • NCR recorded a 27% increase in prices, followed by Bangalore with a 12% rise.
  • Luxury housing accounted for 27% of all new launches in Q2 2025.
  • Affordable housing contributed just 12% to total new launches in Q2 2025.

Sources:

  • ANAROCK's Q2 2025 PAN India Residential Market Viewpoints report (no date provided).
  • IE Online Media Services Pvt. Ltd., distributed by Contify.com (2025).