In 2025, home sales in India’s top eight cities hit 3.48 lakh units, a 1% drop from the year before. Demand stayed firm even as prices climbed. NCR saw the biggest jump at 19% year-on-year. Hyderabad followed with 13%. Bengaluru got 12%. Mumbai and Chennai each rose 7%, per a Knight Frank report from January 7.
Knight Frank India pointed to lower home loan rates, solid economic growth, and tame inflation as reasons demand held up in 2025. Fears of a market drop did not shake it.
The firm’s key report, India Real Estate: Office and Residential Market – July to December 2025, showed Mumbai sales up 1% to 97,188 units. Average price there climbed 7% to ₹8,856 per sq ft. Bengaluru sales stayed even at 55,373 units. Prices rose 12% to ₹7,388 per sq ft.
In Pune, sales fell 3% to 50,881 units. Prices gained 5% to ₹5,016 per sq ft. Delhi-NCR sales dropped 9% to 52,452 units. High base and focus on luxury areas hurt volume. Prices jumped 19% to ₹6,028 per sq ft. Hyderabad sales grew 4% to 38,403 units. Prices increased 13% to ₹6,721 per sq ft.
Prices rose across cities. New high-end projects lifted averages. Strong demand, higher build and land costs helped. More launches in pricey ranges fueled it, the report said.
Market balance stayed good. Quarters-to-sell held at 5.8 in late 2025. Buyers kept pace.
Homes over ₹1 crore made up half of all sales. That segment grew 14% year-on-year. It hit 175,091 units. Luxury now rules the market, the report said.
Homes under ₹50 lakh shrank fast. Sales fell 17% to 73,694 units. They took just 21% of total deals. Back in 2022, they were 63%. Mid-range from ₹50 lakh to ₹1 crore dipped 8%. Demand splits more by price now.
Shishir Baijal, chairman and managing director at Knight Frank India, said: India’s home market settled at high levels in 2025. Sales reached about 3.48 lakh units. Demand proved real from true buyers, not short bursts.
Cheap homes still struggle. Affordability got better in big cities. Many buyers stepped up to pricier homes. But the market split. Low-end under ₹1 crore, especially under ₹50 lakh, saw weak demand and supply.
Gulam Zia, senior executive director for research at Knight Frank India, said: Growth may top out now. City and price differences stand out. High-end over ₹1 crore is half of sales. Chennai and Hyderabad grew well. Mumbai and Bengaluru take stock steady amid price gains.
Cheap homes lag as prices rise and buyers pick carefully. Low stock and quick sales show a healthy market, he added.
For 2026, premium homes may hold sales steady. Big volume jumps look unlikely after peak years. Even uptake, some price gains, and controlled new supply should shape the year.