Residential Sales in Top 8 Indian Cities Dip 1% in 2025, NCR Leads Price Hike

In 2025, residential sales in India’s top eight cities reached 3.48 lakh units, marking a 1% year-on-year (YoY) decline. Despite this slight drop, the sales momentum remained steady, driven by rising prices in key markets. According to a Knight Frank report released on January 7, the National Capital Region (NCR) led with a 19% YoY price increase, followed by Hyderabad (13%), Bengaluru (12%), and Mumbai and Chennai (7% each).

Real estate consultant Knight Frank India noted that the decline in interest rates on home loans, robust economic growth, and lower inflation were key factors that helped sustain housing demand during the 2025 calendar year, despite fears of an impending correction.

In its flagship report, 'India Real Estate: Office and Residential Market – July to December 2025 (H2 2025)', Knight Frank India reported that residential property sales in the Mumbai region rose 1% to 97,188 units. The average housing price in Mumbai increased by 7% to ₹8,856 per square foot. Bengaluru’s housing sales remained flat at 55,373 units, while the average price grew 12% to ₹7,388 per square foot.

In Pune, sales dipped 3% to 50,881 units, but prices appreciated 5% to ₹5,016 per square foot. Delhi-NCR experienced a 9% fall in sales to 52,452 units, largely due to the elevated base effect and selective market activity in high-value corridors, while prices appreciated 19% to ₹6,028 per square foot. Sales in Hyderabad grew 4% to 38,403 units, with prices rising 13% to ₹6,721 per square foot.

Prices rose across the markets, primarily due to the launch of higher-value properties, sustained demand, rising construction and land costs, and an increasing concentration of launches in higher ticket-size categories. The report noted that the market health remained stable, with the quarters-to-sell (QTS) ratio steady at 5.8 in H2 2025, indicating sustained absorption.

Properties priced above ₹1 crore constituted approximately 50% of total residential sales across the top markets in 2025, registering a 14% year-on-year increase. In absolute terms, 175,091 units were sold in the ₹1 crore-plus category, underscoring the growing dominance of higher-value housing in overall market activity. In contrast, the sub-₹50 lakh segment recorded a sharp contraction, with sales declining 17% YoY to 73,694 units, accounting for just 21% of total residential transactions in 2025. The mid-range segment (₹50 lakh to ₹1 crore) also witnessed moderation, with volumes declining 8% YoY, reflecting increasing polarization within the demand spectrum.

Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, said, “India’s residential market in 2025 has clearly entered a phase of consolidation at elevated levels. With approximately 3,48,000 homes sold during the year, demand has held steady after an exceptional multi-year run. This reflects genuine end-user depth rather than episodic spikes.”

While housing affordability has improved across most major markets, enabling a sizeable cohort of buyers to move up the value curve, the residential market has simultaneously become more polarized across price categories. Homes priced below ₹1 crore, and particularly those under ₹50 lakh, continued to face pressure through 2025, marked by a concurrent softening of demand and supply. Supply trends in this segment have largely mirrored subdued buyer interest, indicating an absence of speculative overhang.

Gulam Zia, International Partner, Senior Executive Director, Research, Advisory, Infrastructure, and Valuation at Knight Frank India, said, “The current trajectory increasingly looks like growth is peaking while city and segment-specific nuances are emerging. Homes priced above ₹1 crore now constitute half of total sales, highlighting the decisive tilt toward higher-value products. Cities such as Chennai and Hyderabad have delivered notable growth, while larger markets like Mumbai and Bengaluru continue to absorb supply steadily despite price appreciation.”

Looking ahead, the residential sector stands at a possible inflection point. It remains to be seen if the premium segments will continue to support market volumes in 2026. While rapid volume expansion may remain limited after two years of peak sales, stable absorption, selective price appreciation, and disciplined supply additions are likely to define market activity in 2026.