Indian Housing Market: A Shift Towards Premium Properties

The Indian housing market has witnessed a significant shift in homebuyer preferences, with a growing demand for larger, better-located, and more premium homes. According to a report by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and Commercial Real Estate Matrix (CRE Matrix), housing sales fell 5% to 2.53 lakh units during the first six months of 2025, but increased 9% in value terms to Rs 3.59 lakh crore across eight major cities.

Key Highlights of the Report

• Housing sales declined 5% to 2,53,119 units during January-June 2025 from 2,67,219 units in the year-ago period.
• Appreciation in prices of residential properties led to an increase of 9% in sales in value terms to Rs 3,59,373 crore in the first half of 2025.
• The average ticket size rose 14% to Rs 1.42 crore from Rs 1.24 crore during the period under review.

Shifting Homebuyer Preferences

CREDAI National President Shekhar Patel noted that homebuyers are now prioritizing quality and location over quantity. “We are witnessing a decisive shift in homebuyer preferences across India. The demand is clearly moving towards larger, better-located, and more premium homes — reflecting rising aspirations and improved purchasing power,” he said.

Regional Market Trends

The report highlighted significant regional market trends, including a 21% growth in National Capital Region’s housing value, despite lower volumes. Delhi-NCR’s market share in value terms has increased to 26% from 23% during the period under review.

Luxury Housing Sales on the Rise

Gurugram-based property consultant InfraMantra founder Shiwang Suraj noted that Gurugram and Noida markets have dominated the luxury housing sales in Delhi-NCR. “The region’s growing lifestyle aspiration, massive infrastructure development and demand for bigger homes have led to this surge in luxury housing,” he added.

Premiumisation of the Housing Market

Bhavesh Kothari, founder and chief executive officer of Property First Realty LLP, said the housing market is witnessing ‘premiumisation’ across major cities. “Bengaluru’s real estate market has grown multifold over the last decade and generated high capital appreciation and rental yields for property owners,” he noted.

For Indian investors and homebuyers, this shift towards premium properties presents new opportunities for growth and investment. As the housing market continues to evolve, it’s essential to stay informed about the latest trends and developments.

Conclusion

In conclusion, the Indian housing market is undergoing a significant transformation, driven by shifting homebuyer preferences and a growing demand for premium properties. As the market continues to grow and evolve, it’s crucial for investors and homebuyers to stay ahead of the curve and make informed decisions.

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