India’s real estate market continues to showcase strong post-pandemic resilience, with a notable increase in average ticket sizes across the top seven cities during the first half of FY25. Driven by robust demand for premium and luxury housing, the sector has demonstrated its potential for sustained growth amidst economic uncertainties.

Rising Ticket Sizes in H1 FY25

The average ticket size for homes sold in these cities increased to Rs. 1.23 crore (US$ 145,734), compared to Rs. 1 crore (US$ 120,000) in H1 FY24. This reflects a significant shift towards higher-value properties as more buyers opt for upgraded living spaces and premium features.

Noteworthy city-specific trends include:

• NCR: The highest growth, with a 56% surge in ticket size, reaching Rs. 1.45 crore (US$ 174,000) from Rs. 0.93 crore (US$ 112,000).
• Bengaluru: A 44% increase to Rs. 1.21 crore (US$ 146,000), highlighting its appeal as a hub for tech professionals and investors.
• Hyderabad: A 37% rise to Rs. 1.15 crore (US$ 138,000), driven by its burgeoning IT and commercial sectors.
• Chennai and Pune: Both cities reported significant growth in average ticket sizes, reflecting a broader preference for luxury housing options.
• Kolkata: Although recording a modest 16% increase, ticket sizes reached Rs. 0.61 crore (US$ 73,000), indicating steady demand in the region.

Unit Sales vs. Value Growth

While the number of units sold saw a slight decline, the total value of homes sold rose by 18% in H1 FY25, emphasizing the market’s shift towards value-driven sales. Over 2,27,400 units worth Rs. 2.79 lakh crore (US$ 33.5 billion) were sold across the top cities, with Bengaluru and Hyderabad emerging as key contributors to this growth.

Key Drivers of Growth

1. Demand for Luxury Homes: The increasing preference for spacious homes equipped with modern amenities has pushed up ticket sizes, particularly in cities like NCR and Bengaluru.
2. Post-Pandemic Shifts: With remote work and hybrid models becoming the norm, homebuyers are prioritizing comfort and premium locations.
3. Economic Growth and Urbanization: Rising incomes, urban migration, and robust infrastructure development in these cities have significantly boosted demand for high-value properties.

Challenges and Opportunities

While the sector has demonstrated resilience, challenges such as declining unit sales and regional disparities in growth persist. Kolkata, for instance, experienced a significant drop in unit sales despite its rise in ticket sizes. Additionally, interest rate fluctuations and economic uncertainties remain potential hurdles.

On the flip side, these challenges open up opportunities for developers to innovate and cater to evolving consumer preferences. Investments in smart city projects, green buildings, and integrated townships are likely to drive long-term growth.

The Road Ahead

India’s real estate sector is poised for sustained growth, bolstered by rising demand for luxury housing and strategic investments in infrastructure development. With increasing sales values and the resilience of top cities like NCR, Bengaluru, and Hyderabad, the sector is set to maintain its upward trajectory.

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