Real Estate Mumbai
India's Housing Market Surges 9.6%: A Global Outperformer
2026-02-03 · Geosquare
India has emerged as one of the top ten global markets for residential property, with a remarkable 9.6% year-on-year increase in housing prices, significantly outperforming the global average. According to a recent report from real estate services firm Knight Frank, this growth is supported by firm domestic demand, improving affordability, and a stable macroeconomic environment.
Residential sales across the top eight cities in India remained steady in 2025, with over 3.48 lakh units sold. The second half of 2025 saw the highest sales volumes since 2013, indicating a strong market momentum. Market health indicators remained balanced, with the quarters-to-sell ratio holding at 5.8 quarters, despite a rise in unsold inventory, primarily due to higher-value project launches.
The price growth was broad-based, with the National Capital Region (NCR) leading the pack at 19%, followed by Hyderabad at 13%, Bengaluru at 12%, and Mumbai at 7%. This growth is attributed to the strong traction in premium and mid-to-premium housing segments, supported by cumulative interest-rate cuts, benign inflation, and rising household incomes.
A notable structural shift has been observed in the market, with homes priced above Rs 1 crore accounting for around 50% of total residential sales. Developers have been moderating launches, prioritizing execution, and using financing incentives rather than price cuts to maintain absorption momentum.
Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, commented, “India’s housing market continues to stand apart in a global environment that remains uneven. The combination of strong economic growth, easing financial conditions, and a decisive shift towards end-user-led demand has created a more mature and resilient residential cycle.”
Looking ahead to 2026, the market is expected to be characterized by stable absorption, selective price appreciation, and disciplined supply, rather than speculative excess. Across global housing markets, price growth strengthened modestly in Q3 2025 as easing monetary conditions began to feed through to demand.
Mumbai, in particular, has seen a significant surge in property registrations, with over 1.5 lakh registrations recorded in 2025, the highest in 14 years. This reflects the city's enduring appeal as a major economic and financial hub, attracting both domestic and international investors.
In conclusion, India's housing market is demonstrating resilience and growth, driven by a combination of favorable economic conditions and robust domestic demand. As the market continues to mature, it is likely to attract further investment and maintain its position as a global outperformer.