Residential sales 2025: 3.48 lakh homes sold as buyers move up the price ladder in premium segment

India’s residential real estate market may be past its post-pandemic surge, but 2025 proved that demand remains resilient — just in a different shape. According to Knight Frank India’s latest report, India Real Estate: Office and Residential Market – July to December 2025, home sales across the top eight cities touched 348,207 units, a marginal 1% dip year-on-year, signalling consolidation at elevated levels rather than a slowdown. The real surprise came in the second half of the year. H2 2025 clocked 178,406 unit sales, the highest second-half performance since 2013, underlining steady end-user confidence even as prices continued to rise.

Mumbai leads, Chennai shines

Mumbai retained its crown as the country’s largest residential market, accounting for 29% of total sales with 97,188 units sold, up 1% from 2024. Bengaluru held steady at 55,373 units, while Chennai emerged as a standout, recording a robust 12% jump in annual sales.

In contrast, the National Capital Region (NCR) saw volumes fall 9% to about 52,000 units, reflecting a combination of elevated base effects and selective buyer activity in high-value corridors.

Residential sales in top cities in 2025

City    Units sold    YoY change
Mumbai    97,188    +1%
Bengaluru    55,373    0%
NCR    52,452    -9%
Pune    50,921    -3%
Hyderabad    38,403    +4%
Ahmedabad    18,752    +2%
Chennai    18,262    +12%
Kolkata    16,896    -3%
All India    3,48,247    -1%

Source: Knight Frank Research

Premium homes now dominate

The most striking trend of 2025 was the market’s decisive tilt towards premium housing. Homes priced above Rs 1 crore made up nearly half of all residential sales, with 1.75 lakh such units sold — a 14% jump year-on-year.

Meanwhile, the affordable end of the market continued to thin out. Sales of homes priced below ₹50 lakh dropped 17% to just under 74,000 units, reducing their share of transactions to 21%, compared with nearly 63% as recently as 2022. The mid-income bracket (₹50 lakh–₹1 crore) also cooled, posting an 8% decline.

Price-segment wise sales trend

Price segment    2024 units    2025 units    YoY change

Below ₹50 lakh    89,040    73,694    -17%

₹50 lakh–₹1 crore    1,08,363    99,422    -8%

Above ₹1 crore    1,53,209    1,75,091    +14%

Source: Knight Frank Research

Prices rise, steady market

Rising prices were another defining feature of the year. Weighted average home prices increased across every major city, led by NCR at 19%, followed by Hyderabad (13%), Bengaluru (12%) and Mumbai (7%). Higher land costs, construction inflation and a growing share of premium launches pushed averages upward.

Yet, despite new launches outpacing sales — developers launched 3.62 lakh homes, 3% fewer than last year but still ahead of absorption — market health indicators stayed firm. Unsold inventory across the top cities rose just 3% to about 5.1 lakh units, while the quarters-to-sell ratio held steady at 5.8, signalling disciplined supply and steady demand.Shishir Baijal, Chairman and Managing Director of Knight Frank India, said the sector has entered a phase of “consolidation at elevated levels. “Demand in 2025 reflects genuine end-user depth rather than speculative spikes. The market is transitioning from rapid expansion to a more calibrated trajectory, supported by strong household balance sheets and long-term urban fundamentals,” he noted.

Gulam Zia, Senior Executive Director at Knight Frank India, added that the growing dominance of high-value housing marks a structural shift. “Homes priced above Rs 1 crore now account for half of all sales. While cities like Chennai and Hyderabad are gaining momentum, affordable segments remain under pressure as prices rise and buyer preferences evolve.”

Aakash Ohri, Managing Director & Chief Business Officer, DLF Homes said, "NCR, led by Gurugram, continues to anchor residential demand, driven by buyers across India and NRIs seeking quality developments from trusted brands in India. Despite evolving market cycles and variability in new launches across quarters, higher transaction values reflect sustained buyer confidence. Strong sell-outs in Gurugram, including Privana North, along with successes in markets such as Mumbai and Panchkula, reaffirm that well-planned products remain in demand. Measured supply and pricing discipline further indicate a maturing market positioned for stable growth. The entry of developers from other cities and regions also reinforces Gurugram’s position as a highly attractive and competitive residential market going forward."

Looking ahead to 2026, Knight Frank expects the sector to remain stable rather than explosive. While rapid volume growth may be limited after two peak years, steady absorption, disciplined supply additions and selective price appreciation are likely to define the next phase of India’s residential real estate cycle.