Unprecedented Growth in Real Estate Value Across Major Indian Cities

Mumbai, 20th November 2024: The Indian real estate market is witnessing a remarkable surge in luxury housing demand, with average home prices in the top 7 cities climbing to ₹1.23 crore in the first half of FY25. This marks a 23% year-on-year increase, driven by the post-pandemic shift toward high-end homes, according to the latest report by ANAROCK Research.

Key Highlights of H1 FY25 Real Estate Trends

Total Units Sold: Approx. 2,27,400 units worth ₹2,79,309 crore.

Year-on-Year Comparison: A 3% dip in unit sales compared to H1 FY24 (2,35,200 units), but an 18% increase in total sales value.

NCR Leads the Pack: National Capital Region recorded a massive 56% growth in average ticket size, from ₹93 lakh in H1 FY24 to ₹1.45 crore in H1 FY25.

Anuj Puri, Chairman of ANAROCK Group, commented, “Despite a slight decline in unit sales, the significant increase in sales value underscores the growing dominance of luxury homes in the Indian market.”

City-Wise Analysis

NCR: The Luxury Leader

Average Ticket Size: Grew 56%, from ₹93 lakh to ₹1.45 crore.

Units Sold: 32,120 (down 1% from 32,315 in H1 FY24).

Sales Value: Jumped by 55%, from ₹30,154 crore to ₹46,611 crore.

Bangalore: Tech Hub Sees 44% Price Growth

Average Ticket Size: Increased from ₹84 lakh to ₹1.21 crore.

Sales Value: Soared to ₹37,863 crore (from ₹26,274 crore in H1 FY24).

Units Sold: Nearly unchanged at 31,380.

Hyderabad: High-End Housing on the Rise

Average Ticket Size: Rose by 37%, from ₹84 lakh to ₹1.15 crore.

Units Sold: Dropped to 27,820 from 29,940 in H1 FY24.

Sales Value: Increased by 27%, reaching ₹31,993 crore.

Chennai: Steady Luxury Growth

Average Ticket Size: Grew 31%, from ₹72 lakh to ₹95 lakh.

Sales Value: Rose to ₹9,015 crore (up from ₹7,516 crore).

Pune: Moderate yet Strong Growth

Average Ticket Size: Increased by 29%, from ₹66 lakh to ₹85 lakh.

Sales Value: Jumped to ₹34,033 crore from ₹28,590 crore.

Kolkata: Slower but Positive Trends

Average Ticket Size: Saw a 16% rise, from ₹53 lakh to ₹61 lakh.

Units Sold: Dropped to 8,620 (from 11,095 in H1 FY24).

Sales Value: Declined marginally to ₹5,265 crore.

MMR (Mumbai Metropolitan Region): Steady Market Leader

Average Ticket Size: Unchanged at ₹1.47 crore.

Units Sold: Increased to 77,735 (from 76,410).

Sales Value: Reached ₹1,14,529 crore, up from ₹1,12,356 crore.

Driving Factors Behind the Boom

1. Luxury Homes Take Center Stage: Rising disposable incomes and a preference for spacious, high-end homes have shifted buyer focus to the premium segment.
2. Post-Pandemic Lifestyle Changes: Demand for larger homes with modern amenities has escalated post-COVID-19.
3. Record Launches: Developers have focused on introducing luxury and high-value projects, catering to the evolving market demand.

Future Outlook

With a clear preference for high-end housing, real estate experts predict sustained growth in the premium and luxury segments. Cities like NCR and Bangalore are expected to continue their upward trajectory, while markets like Pune and Hyderabad show promising potential.

This surge reflects India’s growing affluence and its increasing appeal as a global real estate investment hub. The evolving dynamics highlight a significant shift in the Indian housing market—one where luxury isn’t just a segment but a prevailing trend.