NEW DELHI: Housing sales in the top eight Indian cities reached 348,207 units, reflecting a slight 1% year-on-year decline, according to a recent report from Knight Frank India.
Despite the minor annual decrease, the total sales for the second half of the year stood at 178,406 units, the highest performance recorded for H2 since 2013.
In 2025, new housing launches totaled 362,184 units, down 3% year-on-year, but still surpassed sales figures, demonstrating developers’ confidence in long-term demand.
Shishir Baijal, Chairman and Managing Director, noted that the residential market is consolidating at elevated levels, driven primarily by genuine end-user demand rather than speculative investments. Knight Frank anticipates that residential market activity in 2026 will be characterized by steady absorption, selective price increases, and disciplined supply growth.
Market Health Remains Stable
Key indicators of market health have remained stable, with the quarters-to-sell (QTS) ratio at 5.8 quarters in H2 2025, despite a gradual increase in unsold inventory.
Average residential prices rose across all cities, with the National Capital Region (NCR) experiencing a significant 19% year-on-year increase, the highest among major markets. Other cities such as Hyderabad (13%), Bengaluru (12%), and Mumbai (7%) also saw strong price gains, driven by higher-value launches and increased land and construction costs, alongside sustained demand.
City-wise Performance Mixed
Mumbai, the largest residential market in India, accounted for 29% of total sales, with 97,188 units sold in 2025, reflecting a 1% year-on-year growth. Sales momentum picked up in the second half, with a 3% year-on-year rise in H2 2025.
Chennai emerged as a standout performer with a 12% year-on-year increase in annual sales, while Bengaluru remained stable due to steady end-user demand and a balanced supply pipeline. Conversely, NCR saw a 9% year-on-year decline in sales, largely attributed to a high base and selective activity in premium corridors, while Pune experienced a 3% year-on-year contraction.
Premium Housing Dominates Demand
A notable trend in 2025 was the ongoing premiumization of housing demand. Homes priced above ₹1 crore constituted almost 50% of total residential sales, with 175,091 units sold, marking a 14% year-on-year increase. In contrast, the sub-₹50 lakh segment witnessed a 17% year-on-year decline, resulting in 73,694 units sold, which accounted for only 21% of total transactions, down from nearly 63% in 2022. The mid-range segment (₹50 lakh–₹1 crore) also saw an 8% decline year-on-year, underscoring the growing polarization in buyer preferences.
