Luxury Housing Demand Soars: Chennai and Bengaluru See Significant Growth

India’s real estate market experienced a remarkable surge in luxury housing demand during H1 FY2025, with Chennai and Bengaluru emerging as key contributors to this trend. The average ticket size of homes in Chennai increased by 31%, rising from ₹72 lakh in H1 FY2024 to ₹95 lakh in H1 FY2025. Similarly, Bengaluru recorded a 44% rise, with the average ticket size climbing from ₹84 lakh to ₹1.21 crore.

The rise in demand for premium properties in these cities is attributed to economic growth, post-pandemic recovery, and the increasing preference for spacious, high-end homes. Despite a slight dip in the number of units sold, the sales value in Chennai surged from ₹7,516 crore in H1 FY2024 to ₹9,015 crore in H1 FY2025. Bengaluru also saw a significant jump, with sales value increasing from ₹26,274 crore to ₹37,863 crore during the same period.

According to Anarock’s analysis, India’s top seven cities collectively witnessed an 18% increase in total sales value, even though the number of units sold dropped by 3%. The average ticket size across these cities rose from ₹1 crore in H1 FY2024 to ₹1.23 crore in H1 FY2025. Delhi NCR saw the highest growth in average ticket size, with a 56% increase, while the Mumbai Metropolitan Region (MMR) maintained the highest average ticket size at ₹1.47 crore.

Hyderabad and Pune also contributed to the luxury housing boom, with average ticket sizes rising by 37% and 29%, respectively. In contrast, Kolkata recorded a more modest 16% increase.

Anarock Chairman Anuj Puri highlighted that the surge in luxury housing sales reflects a shift in buyer preferences post-COVID-19, driven by a growing appetite for premium living spaces. With continued infrastructural development and economic expansion, cities like Chennai and Bengaluru are well-positioned to attract more investments in the luxury real estate sector.