Hyderabad Surges, NCR Slips, Mumbai Holds Firm: Premium Housing Leads Everywhere
India’s housing market is undergoing a sharp transformation, according to property consultant Knight Frank India. Total sales in 2025 stood resilient at 3.48 lakh units. Notably, homes priced above Rs 1 crore now account for 50% of sales, indicating a significant shift towards premium housing. Conversely, the demand for affordable housing fell by 17% year-over-year (YoY) in 2025.
Mumbai, known for its high property values, recorded 97,188 units sold in 2025, marking a 1% YoY increase. The second half of the year saw a 3% rise in sales despite higher ticket sizes, reflecting the robust demand for premium housing in India’s costliest market.
Bengaluru and Pune are experiencing mixed trends. Bengaluru maintained sales at 55,373 units in 2025, while Pune saw a 3% annual dip in overall sales. Despite these fluctuations, the trend towards premium housing continues, even as demand in the mid-segment softens.
The National Capital Region (NCR) is facing the sharpest pressure. Sales in the NCR dropped by 9% in 2025, with affordable housing sales plummeting by 25% YoY. The slowdown is particularly evident in the lower ticket segments, where buyers are becoming more cautious.
Hyderabad has emerged as a standout performer, posting a 12% annual sales growth. In the second half of 2025, sales surged by 13% YoY, driven by robust momentum in the premium housing segment. This growth underscores Hyderabad’s growing appeal as a prime real estate market.
Ahmedabad and Kolkata have also shown resilience. Ahmedabad saw a 4% growth in sales in 2025, while Kolkata recorded a modest 2% annual rise. Both cities have maintained stable demand across various segments, reflecting their strong local economies.
Chennai, however, shows a divergence in its performance. While it saw a 7% growth in the second half of 2025, full-year sales declined by 3%. The trend towards premium housing continues in Chennai, despite the softer annual numbers.
For homebuyers, these trends mean that affordable supply is tightening across cities. Premium inventory, especially in metros, is expanding, which may limit the availability of homes priced below Rs 50 lakh in the future. This shift highlights the need for buyers to carefully consider their options in the evolving real estate landscape.
