Residential Sales Hold Momentum in 2025; Over 348,000 Units Sold: Knight Frank India

Residential Sales Hold Momentum in 2025; Over 348,000 Units Sold: Knight Frank India

Mumbai, Jan 10: Knight Frank India’s flagship report, India Real Estate: Office and Residential Market July to December 2025 (H2 2025), highlights that the country’s residential real estate market maintained steady momentum in 2025, closing the year with approximately 348,247 units sold across India’s top eight cities a marginal 1% decline year-on-year (YoY).

H2 2025 Performance:
The second half of 2025 saw 178,406 units sold, marking the highest H2 performance since 2013. Despite rising unsold inventory, the quarters-to-sell (QTS) ratio remained stable at 5.8, indicating healthy market absorption.

City-wise Highlights:

• Mumbai retained its leadership with 97,188 units sold, up 1% YoY.

• NCR sales declined 9% YoY to 52,452 units due to selective market activity and elevated base effects.

• Chennai and Hyderabad posted robust growth, with sales up 12% and 4% YoY, respectively.

• Bengaluru remained broadly stable, while Pune saw a 3% YoY contraction.

Residential Price Trends:
Prices continued to rise across major markets, led by NCR with 19% YoY growth, followed by Hyderabad (13%), Bengaluru (12%), and Mumbai (7%). Price appreciation was driven by the launch of higher-value properties, rising construction and land costs, and growing demand for premium homes.

Shift Toward Higher-Value Housing:

• Homes priced above INR 1 crore accounted for 50% of total sales in 2025, totaling 175,091 units—a 14% YoY increase.

• Mid-segment homes (INR 50 lakh–1 crore) declined 8% YoY.

• Affordable housing (under INR 50 lakh) recorded a sharp 17% decline, reflecting structural constraints, limited availability, and selective buyer demand.

This trend indicates a polarization in the market, with end-users increasingly opting for higher-quality, higher-value homes, while lower-ticket segments face subdued activity.

Inventory and Market Health:
Supply remained active, with new launches outpacing sales in most cities. Despite this, market health remained stable, supported by manageable inventory levels and efficient absorption. Key metrics:

• Mumbai: 155,604 units unsold (-6% YoY), QTS 6.4

• NCR: 104,969 units unsold (-2% YoY), QTS 7.6

• Bengaluru: 67,518 units unsold (+25% YoY), QTS 4.9

Expert Insights:
Shishir Baijal, International Partner, Chairman & MD, Knight Frank India, said,

“India’s residential market in 2025 has entered a phase of consolidation at elevated levels. Sales reflect genuine end-user demand rather than episodic spikes. While the affordable segment faces pressure, stable inventory levels and low quarters-to-sell indicate a structurally balanced market moving into 2026.”

Gulam Zia, International Partner and Senior Executive Director, Knight Frank India, added,

“Growth appears to be peaking, with premium homes now dominating sales. Cities like Chennai and Hyderabad are growing rapidly, while larger markets like Mumbai and Bengaluru continue absorbing supply steadily. Overall, the sector remains active, disciplined, and structurally sound.”

Outlook for 2026:
While rapid volume expansion may be limited after two years of peak sales, selective price appreciation, stable absorption, and disciplined supply additions are expected to define residential market activity in 2026. Premium segments are likely to continue supporting overall volumes, even as affordable housing segments remain under pressure.