The average home price in India’s top seven cities surged by 23% year-on-year (YoY) during the first half of FY25, reaching ₹1.23 crore, compared to ₹1 crore in the same period last year, according to a report by real estate consultancy firm Anarock. The significant rise is attributed to a growing demand for luxury properties post-pandemic, alongside increased launches of high-value homes.
Overall Market Performance
- Units Sold: 2,27,400 homes were sold across the top seven cities between April and September 2024, down 3% from 2,35,200 in FY24.
- Total Value: Despite fewer units, the total sales value rose by 18%, from ₹2,35,800 crore in H1 FY24 to ₹2,79,309 crore in H1 FY25.
City-Wise Analysis
| City | Avg. Price (H1 FY24) | Avg. Price (H1 FY25) | YoY Growth | Units Sold (H1 FY25) | Sales Value (₹ Cr) |
| NCR | ₹93 lakh | ₹1.45 crore | 56% | 32,120 | ₹46,611 |
| Bengaluru | ₹84 lakh | ₹1.21 crore | 44% | 31,380 | ₹37,863 |
| Hyderabad | ₹84 lakh | ₹1.15 crore | 37% | 27,820 | ₹31,993 |
| Mumbai Metropolitan | ₹1.47 crore | ₹1.47 crore | 0% | 77,735 | ₹1,14,529 |
| Pune | ₹87 lakh | ₹1 crore | 15% | 40,190 | ₹34,033 |
| Chennai | ₹82 lakh | ₹94 lakh | 15% | N/A | N/A |
| Kolkata | ₹77 lakh | ₹88 lakh | 14% | N/A | N/A |
NCR Leads Growth
The National Capital Region (NCR) registered the highest average price increase, jumping 56% from ₹93 lakh in H1 FY24 to ₹1.45 crore in H1 FY25. Notably, while the number of units sold in NCR dropped marginally from 32,315 to 32,120 YoY, the total sales value rose sharply by 55%, from ₹30,154 crore to ₹46,611 crore.
Other Cities
- Bengaluru: Average ticket size grew 44% to ₹1.21 crore, with sales value climbing to ₹37,863 crore.
- Hyderabad: Home prices saw a 37% rise to ₹1.15 crore, backed by a total sales value of ₹31,993 crore.
- Mumbai Metropolitan Region (MMR): The region maintained its average ticket size of ₹1.47 crore, leading all cities with ₹1,14,529 crore in sales value.
Drivers of Growth
Anarock’s report attributes the rise in home prices to several factors:
- Luxury Segment Expansion: Increased interest in high-end homes, fueled by a surge in disposable income and changing lifestyle aspirations.
- Supply of Premium Properties: Developers launched costlier homes to cater to the growing demand in metro cities.
- Rising Demand Among NRIs: Affluent Indians abroad contributed significantly to luxury home sales, with their share expected to rise to 20% by 2025.
Conclusion
The demand for premium homes shows no signs of abating, with developers continuing to expand offerings in this segment. While the number of units sold saw a slight dip, the rise in average ticket sizes and total sales value underscores the robust health of India’s real estate market. As luxury housing becomes a dominant trend, the next half of FY25 may witness further consolidation in the market, driven by both domestic and international buyers.