Shift in Homebuyer Preferences Drives Value Growth in Indian Housing Market

Housing sales in India's top eight cities fell by 5% in units but rose 9% in value during the first half of 2025, reflecting a shift towards premium homes. CREDAI and CRE Matrix report indicates rising aspirations and improved purchasing power, while quality and location gain precedence over quantity.

Housing sales across India's top eight cities dipped by 5% in the first half of 2025, yet witnessed a 9% surge in value, according to a report by CREDAI and data firm CRE Matrix. This shift underscores homebuyers' evolving preferences towards larger, more premium residences.

Despite a drop in unit sales to 2.53 lakh from 2.67 lakh units year-on-year, sales values climbed to Rs 3.59 lakh crore, driven by a rise in residential property prices. 'The demand is moving steadily towards better-located and larger homes,' remarked CREDAI National President Shekhar Patel.

The report highlights a 21% rise in NCR’s housing value despite lower volumes, marking a shift towards quality over quantity. Additionally, Delhi-NCR's value market share increased to 26% from 23%, fueled by luxury housing demand in Gurugram and Noida.