Hyderabad Surges, NCR Slips: Premium Housing Leads the Indian Real Estate Market
India’s housing market is undergoing a significant transformation, according to property consultant Knight Frank India. The total sales in 2025 stood resilient at 3.48 lakh units. Notably, homes priced above Rs 1 crore now account for 50% of sales, marking a clear trend towards premium housing. Conversely, the demand for affordable housing has fallen by 17% year-over-year (YoY) in 2025.
Mumbai, India’s costliest real estate market, recorded 97,188 units sold in 2025, a marginal 1% increase YoY. The city saw a 3% rise in sales in the second half of the year, despite the high ticket sizes. The premium segment continues to drive demand in Mumbai, reflecting the city’s status as a hub for high-net-worth individuals.
Bengaluru and Pune have shown mixed trends. Bengaluru's sales were flat at 55,373 units in 2025, while Pune experienced a 3% annual dip in overall sales. Despite these challenges, the trend towards premium housing is evident in both cities, with mid-segment demand softening.
The National Capital Region (NCR) faces the sharpest pressure, with sales dropping 9% in 2025. Affordable housing sales in the region fell by 25% YoY, indicating a significant slowdown in the lower-ticket segments. This decline is particularly visible in areas like Gurgaon and Noida, where the affordable housing market has traditionally been strong.
Hyderabad has emerged as a standout performer, posting a 12% annual sales growth. The city saw a 13% YoY increase in sales in the second half of 2025. The momentum in the premium housing segment remains robust, driven by the city's growing IT and tech industries.
Ahmedabad and Kolkata have also shown resilience. Ahmedabad recorded a 4% growth in 2025, while Kolkata saw a modest 2% annual rise. Both cities have maintained stable demand across all segments, indicating a well-balanced market.
Chennai presents a mixed picture. The city saw a 7% growth in sales in the second half of 2025, but full-year sales declined by 3%. The trend towards premium housing continues, even as annual numbers soften.
For homebuyers, the shift towards premium housing means that affordable supply is tightening across cities. While premium inventory is expanding, especially in metros, homebuyers may find fewer options priced below Rs 50 lakh going forward. This trend underscores the need for buyers to carefully consider their budget and preferences in the evolving real estate landscape.
