Housing mkt turns value-driven in 2025 as luxury homes gain ground: Report

India’s residential real estate market entered a decisive new phase in 2025, transitioning from a volume-driven expansion to a more mature, value-led growth cycle, according to a latest joint report by the Indian Chamber of Commerce (ICC) and ANAROCK. The report noted that housing sales across the top seven cities declined 14 per cent year-on-year to around 3.96 lakh units. However, despite the fall in volumes, the total transaction value rose 6 per cent to cross Rs6 lakh crore, signalling a clear shift towards higher ticket sizes and the growing dominance of premium and luxury housing.

This divergence between sales volume and transaction value reflects a deeper structural transformation in the Indian housing market. Following a prolonged phase of muted price growth between 2015 and 2019, residential prices surged nearly 54 per cent during the 2019–24 period, driven by post-pandemic recovery, increased infrastructure investments and consolidation among large, organised developers. In 2025, price growth moderated to a healthier average of around 8 per cent, indicating a more sustainable and end-user-driven market environment.

Anuj Puri, Chairman of ANAROCK Group, said one of the most significant changes has been the shift in demand composition.