India’s housing market in 2025: Where demand held and why?

India’s housing market in 2025: Where demand held and why?


In NCR, Gurugram continued to dominate the regionโ€™s luxury housing landscape, accounting for nearly nine out of every ten luxury home sales in NCR.

New Delhi:

The year 2025 did not unfold as a year of exuberance for Indiaโ€™s residential real estate, but it marked something far more meaningful- consolidation. Developers, too, displayed greater balance-sheet discipline, favouring calibrated launches and execution over aggressive expansion. The overall sentiment through the year remained cautiously optimistic, underpinned by steady demand and improving confidence.ย 

H1 2025 Overview

JLL reported that the first half of 2025 (H1 2025) showed a clear divergence in Indiaโ€™s residential market. While overall housing sales declined by about 13 per cent year-on-year to nearly 1.35 lakh units, demand at the upper end of the market remained resilient and, in parts, accelerated. Homes priced at Rs 1 crore and above continued to gain traction, with the Rs 3-5 crore segment recording a 14 per cent rise in demand, and properties priced above Rs 5 crores seeing an 8 per cent increase compared to H1 2024. Indiaโ€™s top seven cities clocked nearly 69,600-unit sales in Q2 alone, led by Bengaluru, Mumbai, Pune and Delhi-NCR, which together accounted for over three-fourths of the quarterโ€™s volumes.ย 

In NCR, Gurugram continued to dominate the regionโ€™s luxury housing landscape, accounting for nearly nine out of every ten luxury home sales in NCR. Buyer interest remained sharply focused on infrastructure-led corridors, particularly the Southern Peripheral Road and the Dwarka Expressway, which together drove over 60 per cent of Gurugramโ€™s luxury housing demand.ย 

According to Umang Jindal, CEO of Homeland Group, NCR continues to offer depth, but Gurugram stands out as the market where demand, infrastructure, and buyer intent converge most clearly.ย 

โ€œAs someone expanding in this region, we see Gurugram benefiting from a rare combination โ€” strong luxury housing demand, global connectivity, and visible infrastructure progress across key corridors. Buyer conversations this year were far more mature; families and investors are thinking long-term, evaluating livability, access and community planning rather than just pricing. But the real driver has been sustained wealth creation and employment growth. Looking ahead to 2026, we see Gurugram offering a scalable opportunity, not just for individual projects, but for thoughtfully planned residential developments that can grow with the city. Thatโ€™s where we believe the next phase of NCRโ€™s housing story will unfold,โ€ Jindal said.

Noida and Greater Noida, meanwhile, strengthened their position on the back of sustained price appreciation and improving market depth. As per Anarock, average residential prices in Greater Noida nearly doubled over the past five years, rising from around Rs. 3,340 per sq. ft. in early 2020 to about Rs. 6,600 per sq. ft. by Q1 2025, translating into a 98 per cent increase. Noida followed closely, recording a 92 per cent rise over the same period, reinforcing both marketsโ€™ evolution into credible long-term residential and investment destinations.

According to Salil Kumar, Director- Marketing and Business Management, CRC Group, Infrastructure has been the real catalyst in Noida-Greater Noida.ย 

“The progress around the Noida International Airport has significantly strengthened buyer confidence, not just for investors but for end-users looking at long-term livability. We saw growing interest in larger, well-planned luxury homes, driven by professionals, business owners and NRIs who see the regionโ€™s connectivity and future potential clearly. Improved expressways, metro links and social infrastructure have narrowed the gap with more established markets. Importantly, this demand has been measured and end-user driven. As we look toward 2026, with airport-led development gaining momentum, Noidaโ€“Greater Noida is likely to see sustained luxury housing growth, supported by infrastructure visibility, improving lifestyle ecosystems and a more confident, long-term buyer mindset,โ€ Kumar added.

H2 2025 Overview

The second half of 2025 (H2 2025) saw residential momentum in the NCR regain pace, driven by a sharp pickup in launches and sustained demand for well-located housing. Data from JLL shows that the September quarter alone witnessed over 10,200 new residential units being introduced across the region, with Gurugram once again emerging as the epicentre of activity. Emerging sub-markets such as New Gurugram and the Dwarka Expressway together accounted for almost half of the cityโ€™s quarterly supply, underlining the growing importance of infrastructure-ready corridors.ย 

Karan Malik, Regional Director, Realistic Realtors, is of the view that NCRโ€™s housing market has finally outgrown the idea of a single destination.ย 

โ€œGurugram remains the benchmark for luxury living, but it no longer operates in isolation. Noidaโ€“Greater Noida has stepped into its own, with infrastructure like the Noida International Airport materially reshaping residential choices and buyer confidence. At the same time, Faridabad is no longer a peripheral afterthought; steady end-user demand and the rise of township-led developments have given it a clear residential identity. Buyers today are far more decisive; their choices are based on readiness, connectivity and long-term livability, not just price appreciation. The RBIโ€™s cumulative 125 basis points rate cut supported this confidence, but the real shift is behavioural. Heading into 2026, NCRโ€™s housing growth will be selective and layered, rewarding markets that offer genuine infrastructure depth and livable ecosystems,โ€ he said

Pricing, meanwhile, mirrored this preference for location and access, with average launch prices rising sharply quarterly. Thus, rather than marking a peak, 2025 laid the groundwork for the next phase of Indiaโ€™s residential cycle.



Leave a Reply

Your email address will not be published. Required fields are marked *