Housing Sales Decline 1% in Top 8 Cities, Prices Surge by 19%: Knight Frank

Housing sales in India's top eight cities experienced a slight decline of 1% in 2025, settling at just over 348,000 units. According to real estate consultant Knight Frank, the average housing price grew by up to 19% during the same period. This data pertains to the primary residential market only.

In a virtual press conference on January 7, Knight Frank India highlighted that despite the rise in weighted average prices, the sales momentum continued. The decline in interest rates on home loans, strong economic growth, and lower inflation were key factors that helped sustain housing demand during the 2025 calendar year, despite fears of an impending correction.

Shishir Baijal, CMD of Knight Frank India, noted that the contribution of Non-Resident Indians (NRIs) in housing sales has risen to 12-15% from single digits a decade ago. This indicates a growing interest from overseas investors in the Indian real estate market.

Among the cities, the Mumbai region saw a 1% increase in residential property sales, reaching 97,188 units. The average housing price in the country's financial capital rose by 7% to ₹8,856 per sq ft. This growth is significant given the city's status as a major economic hub.

In Bengaluru, housing sales remained flat at 55,373 units, but the average price grew by 12% to ₹7,388 per sq ft. This indicates a steady market with a moderate price increase.

Pune experienced a 3% dip in sales to 50,881 units, but prices appreciated by 5% to ₹5,016 per sq ft. This suggests that while demand may have slightly decreased, the market remains stable.

Delhi-NCR saw a more pronounced decline in sales, with a 9% drop to 52,452 units. However, prices appreciated by 19% to ₹6,028 per sq ft, indicating a strong upward trend in property values despite the decline in sales volume.

Hyderabad recorded a 4% growth in housing sales to 38,403 units, with prices rising by 13% to ₹6,721 per sq ft. This growth is a positive sign for the city's real estate market.

Ahmedabad also saw an increase in housing sales, with a 2% rise to 18,752 units. Prices in the Gujarat capital grew by 3% to ₹3,197 per sq ft, reflecting a steady and gradual growth in the market.

Chennai experienced a 12% growth in housing sales to 18,262 units, with a 7% rise in average housing price to ₹5,135 per sq ft. This indicates a strong recovery and demand in the southern city.

Kolkata, however, saw a 3% decline in housing sales to 16,896 units. Despite this, the average price of residential properties in the West Bengal capital increased by 6% to ₹4,037 per sq ft, suggesting that the market remains resilient.

Overall, the data from Knight Frank provides a nuanced view of the Indian real estate market, highlighting both the challenges and opportunities in different regions.