India’s residential real estate market entered a more mature, value-driven phase in 2025, moving away from volume-led growth, according to a recent report by the Indian Chamber of Commerce and ANAROCK.

Housing sales across the top seven cities declined 14 per cent year-on-year to around 3.96 lakh units. However, total transaction value increased six per cent, crossing Rs 6 trillion, underlining the growing dominance of higher ticket-size and premium housing.

This divergence reflects a structural shift in the market. After a muted price phase between 2015 and 2019, residential prices rose nearly 54 per cent during 2019–24, supported by post-pandemic recovery, infrastructure investment and consolidation among large developers. In 2025, price growth moderated to a healthier eight per cent, signalling a more sustainable, end-user-driven cycle.

Commenting on the trend, Anuj Puri, Chairman, ANAROCK Group, said demand composition has changed sharply. Homes priced below Rs 7.5 million, which accounted for nearly 60 per cent of sales in 2021, now represent about 32 per cent of the market, while luxury and ultra-luxury segments continue to expand.

Luxury homes priced above Rs 4 million now contribute around 18–20 per cent of total sales in the top seven cities, compared to just one to two per cent before the pandemic. The ultra-luxury segment, comprising homes priced at Rs 400 million and above, recorded a sharp 66 per cent rise in sales in 2025, with the Mumbai Metropolitan Region accounting for over 70 per cent of these transactions.