Hyderabad Shines, NCR Falters, and Mumbai Remains Steady in India's Premium Housing Market
India’s housing market is undergoing a significant transformation, according to property consultant Knight Frank India. In 2025, the total sales stood resilient at 3.48 lakh units, but the landscape has shifted dramatically. Homes priced above Rs 1 crore now account for 50% of sales, while affordable housing demand fell by 17% year-over-year (YoY).
Mumbai, India’s costliest market, recorded 97,188 units sold in 2025, marking a 1% YoY increase. Despite the high ticket sizes, H2 sales rose by 3%, indicating that premium demand remains strong in the city. This resilience is particularly notable given the economic challenges faced by many other regions.
Bengaluru and Pune, two major cities in the south, saw mixed trends. Bengaluru’s sales remained flat at 55,373 units in 2025, while Pune experienced a 3% annual dip in overall sales. Despite these challenges, premiumisation continues in both cities, even as mid-segment demand softens.
The National Capital Region (NCR) faced the sharpest pressure, with sales dropping by 9% in 2025. The decline was most pronounced in the affordable housing segment, where sales fell by 25% YoY. This slowdown is particularly visible in the lower ticket segments, reflecting the economic pressures faced by many residents in the region.
Hyderabad emerged as a standout performer, posting a 12% annual sales growth. H2 2025 sales surged by 13% YoY, driven by robust momentum in the premium housing market. The city’s strong economic growth and attractive lifestyle have made it a preferred destination for both domestic and international buyers.
Ahmedabad and Kolkata also demonstrated resilience, with Ahmedabad’s sales growing by 4% in 2025 and Kolkata’s sales rising by a modest 2%. Demand in these cities remains stable across all segments, indicating a well-balanced market.
Chennai, on the other hand, showed a divergence in its performance. While the city saw a 7% growth in H2 2025, full-year sales declined by 3%. Despite the softer annual numbers, the premium shift continues, reflecting a growing preference for higher-end properties.
For homebuyers, the tightening supply of affordable housing across cities is a significant concern. Premium inventory is expanding, especially in metros, which means that homebuyers may find fewer options priced below Rs 50 lakh in the coming years. This trend highlights the need for policymakers and developers to focus on creating more affordable housing options to meet the diverse needs of the market.
In summary, India's housing market is witnessing a clear premiumisation trend, with some cities outperforming others. Hyderabad’s strong growth, NCR’s challenges, and Mumbai’s steady performance are key highlights. As the market continues to evolve, it will be crucial to monitor these trends and their implications for both buyers and the broader economy.
