(Source: Poll of Polls)
New Housing Launches Dip 5% In H1 2025, But Luxury Sales Drive Revenue Growth: Report
Despite this dip in new launches, housing sales value across Tier 1 cities continued to climb, touching nearly Rs 3.6 lakh crore in H1 CY25—an increase of 9 per cent recorded in the previous year
India's residential real estate sector experienced a moderation in new project launches during the first half of calendar year 2025 (H1 CY25), with developers exercising greater caution in response to shifting demand dynamics. According to the latest edition of CREDAI’s India Housing Report, compiled in partnership with data analytics firm CRE Matrix, only around 2.6 lakh residential units were introduced across the country during this period. This marks a nearly 5 per cent decline from the approximately 3 lakh units launched in H1 CY24.
Despite this dip in new launches, housing sales value across Tier 1 cities continued to climb, touching nearly Rs 3.6 lakh crore in H1 CY25—an increase of 9 per cent over the Rs 3.3 lakh crore recorded in the corresponding period of the previous year.
The National Capital Region (NCR) significantly increased its share of overall revenue, moving from 23 per cent in H1 CY24 to 26 per cent in H1 CY25. The report notes that luxury homes priced above Rs 3 crore contributed 73 per cent of NCR’s total sales value, despite the relatively low volume of 25,000 units sold.
The Mumbai Metropolitan Region (MMR) was the second-highest contributor, accounting for 23 per cent of total revenue. MMR witnessed the sale of 75,000 units—a 9 per cent rise in sales value—driven largely by a 16 per cent increase in average ticket size.
Mixed Performance In Southern Cities
Chennai stood out in the south with a 23 per cent rise in sales value, supported by the sale of 11,000 units and a 12 per cent rise in average ticket size. New project launches in the city also expanded, rising from 14,000 to 19,000 units. However, the share of homes priced below Rs 70 lakh declined from 23 per cent to 17 per cent, reflecting a shift toward mid-to-premium housing.
Bengaluru maintained its growth trajectory, recording a 4 per cent increase in sales value from 30,000 units sold. However, homes priced between Rs 70 lakh and Rs 1.5 crore saw a reduction in share from 38 per cent to 32 per cent, despite a 17 per cent jump in ticket size.
Hyderabad's Divergence: Fewer Sales, More Launches
Hyderabad's market dynamics diverged notably from the broader trend. Although the city registered a modest 2 per cent increase in overall sales value, the number of units sold declined by 11 per cent, totaling 30,000. Interestingly, developers ramped up supply significantly, with new launches doubling from 23,000 to 42,000 units—indicating strong supply-side optimism despite a slowdown in absorption.
Across India, the average price per home rose sharply. The average ticket size jumped from Rs 1.13 crore in H2 CY23 to Rs 1.42 crore in H1 CY25, highlighting sustained consumer demand in higher price brackets.
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