NEW DELHI: The premium housing sector has taken the lead in India’s residential real estate market during the first half of 2025, with nearly 50% of homes sold exceeding ₹1 crore. A report by Knight Frank India indicates that 49% of the 1.7 lakh housing units sold across the top eight cities from January to June 2025 were in this premium category, despite a slight year-on-year dip of 2% in overall housing sales.
This trend highlights a shift in buyer preferences due to limited supply of affordable housing and an increase in demand from mid-to-high-income buyers. The National Capital Region (NCR) recorded the highest share of premium housing sales, with 81% of residential transactions in the region involving homes priced above ₹1 crore. Bengaluru followed with 70% in this bracket, while Mumbai saw 36% of its home sales at similar prices.
Sales of luxury housing—properties priced between ₹20 crore and ₹50 crore—spiked by 29% during this period. Conversely, sales of homes below ₹50 lakh plummeted by 18% year-on-year to 37,796 units, marking a significant 43% decline compared to H1 2018. Bengaluru experienced the steepest drop in affordable housing demand, with an 85% decrease in the under-₹50 lakh segment from 2018 levels.
The supply of affordable homes remained low, with new launches in the sub-₹50 lakh category down 31% year-on-year to 30,806 units, signaling challenges in terms of availability and pricing.
Sales by Price Category (H1 2025)
| 50 L – 1 Cr | 1 – 5 Cr | 5 – 10 Cr | 10 – 20 Cr | 20 – 50 Cr | > 50 Cr | TOTAL | ||
| Mumbai | 18,604 | 11,729 | 15,270 | 1,075 | 199 | 124 | 34 | 47,035 |
| NCR | 1,815 | 3,152 | 16,416 | 4,158 | 1,055 | 40 | 159 | 26,795 |
| Bengaluru | 1,583 | 6,387 | 18,299 | 325 | 5 | – | – | 26,599 |
| Pune | 6,708 | 11,375 | 6,175 | 52 | 18 | 1 | – | 24,329 |
| Hyderabad | 909 | 5,332 | 11,931 | 673 | 189 | 14 | – | 19,048 |
| Ahmedabad | 2,962 | 4,247 | 2,097 | 57 | 7 | – | – | 9,370 |
| Chennai | 1,930 | 4,040 | 2,796 | 135 | 34 | – | – | 8,935 |
| Kolkata | 3,285 | 2,710 | 2,058 | 35 | – | 2 | – | 8,090 |
| INDIA | 37,796 | 48,972 | 75,042 | 6,510 | 1,507 | 181 | 193 | 170,201 |
Despite lower overall sales volumes, residential prices have continued to rise in most major cities. NCR and Bengaluru saw the highest growth with a 14% year-on-year increase in average prices, while Hyderabad and Chennai followed with 11% and 9% increases, respectively. Mumbai remains the most expensive market, averaging ₹8,532 per sq ft, reflecting an 8% rise from the previous year.
Unsold inventory in India’s top eight residential markets has remained stable, increasing by 4% year-on-year to 5.05 lakh units. The quarters-to-sell (QTS) ratio, an important indicator of market health, remained steady at 5.8 quarters. Homes costing between ₹2–5 crore showed the quickest absorption at 3.9 quarters, whereas ultra-luxury properties priced between ₹20–50 crore had a QTS of 17.1 quarters.
Chennai was the only metro city to defy the overall sales trend, recording a year-on-year growth of 12% in total residential sales. In contrast, cities like Kolkata and NCR experienced double-digit declines, highlighting the uneven recovery across regions.
