India's Premium Real Estate Sector Grows: ₹1 Crore+ Homes Now 52% of Q3 Sales
Knight Frank reports a 15% YoY increase in premium housing sales, while sub-₹1 Crore sales decline to 48%. The shift towards larger, high-end properties is reshaping India's real estate market.
Real EstatePremium HousingMarket TrendsProperty SalesUrban Real EstateReal EstateOct 07, 2025
While new launches dipped 2% YoY to 88,655 units, prices climbed across markets — NCR up 19%, Bengaluru 15%, and Hyderabad 13%.
Mumbai continued to lead with 24,706 units sold (+2% YoY), accounting for 28% of the overall sales. Chennai recorded the strongest growth at 12% YoY with 4,617 units, its highest sales since the pandemic. Other major markets like NCR (12,955 units) and Bengaluru (14,538 units) remained steady, while Pune was the only laggard with sales declining by 8% YoY.
In Q3 2025, prices have continued to rise even as developers are increasingly introducing financing options, including bank tie-ups and subvention schemes, to stimulate sales, said the report. The report attributes housing market resilience to a favorable macroeconomic environment.
With inflation easing to 2.07% in August 2025 (down from 3.65% a year ago) and the RBI lowering the repo rate by 1% since end-2024, liquidity conditions have improved.
India’s real estate upcycle entered its fifth consecutive year, driven by strong end-user confidence and financing innovations. Homes priced above ₹1 crore now account for 52% of all sales, up from 46% last year, with the ₹1–2 crore bracket leading growth at 17% YoY.
By contrast, homes priced below ₹1 crore saw a decline, as demand shifted toward larger, higher-quality properties. Notably, sales in the ₹10–20 crore luxury bracket surged 170% YoY, reflecting the rising appetite for ultra-premium homes in metros.
India’s residential market in Q3 2025 has demonstrated an impressive ability to sustain momentum. The market is now in its fifth year of an upcycle, said Shishir Baijal, Chairman & Managing Director, Knight Frank India. The surge in demand for premium housing reflects the evolving aspirations of urban buyers for larger and higher-quality homes, he added.
City-wise highlights include:
- Mumbai: 24,706 units sold (+2% YoY), contributing 28% to total sales.
- Chennai: Fastest-growing market with 12% YoY rise; 4,617 units sold.
- Hyderabad: Recorded 9,601 units sold (+5% YoY).
- NCR: Stable at 12,955 units sold; strongest price growth at 19%.
- Bengaluru: 14,538 units sold, maintaining steady volumes.
- Pune: Only major city to report decline, down 8% YoY to 12,118 units.
Total sales: 87,603 units (+1% YoY). YTD (Jan–Sep 2025): 2.57 lakh units (-1% YoY).
Despite a 4% YoY rise in unsold inventory to 5.06 lakh units, market health remains strong. The Quarters to Sell (QTS) metric stood steady at 5.8 quarters, or less than 18 months of stock — indicating balanced market conditions. However, unsold inventory was concentrated in higher ticket-size categories, particularly ₹2–5 crore and above segments.
Premium housing has decisively taken centre stage, accounting for more than half of all sales this quarter, said Gulam Zia, Senior Executive Director – Valuation, Advisory and Research, Knight Frank India. The strength of the ₹1–2 crore segment underscores a structural shift in buyer demand, he added. The price growth has been strong in NCR, Bengaluru and Hyderabad at 19%, 15% and 13% YoY respectively.
Frequently Asked Questions
What is the current trend in India's real estate market?
India's real estate market is experiencing a shift towards premium housing, with homes priced above ₹1 crore now accounting for 52% of all sales in Q3 2025, up from 46% last year.
Which city led in home sales in Q3 2025?
Mumbai led in home sales in Q3 2025 with 24,706 units sold, accounting for 28% of the overall sales.
What factors are driving the real estate market's resilience?
The market's resilience is attributed to a favorable macroeconomic environment, including easing inflation and improved liquidity conditions due to the RBI lowering the repo rate.
How has the demand for premium housing evolved?
Demand for premium housing has surged, with the ₹1–2 crore bracket leading growth at 17% YoY. Sales in the ₹10–20 crore luxury bracket have also surged by 170% YoY.
What is the current state of unsold inventory in the market?
Unsold inventory has risen by 4% YoY to 5.06 lakh units, but market health remains strong with a Quarters to Sell (QTS) metric of 5.8 quarters, or less than 18 months of stock.
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