Curation Team
NEW DELHI: Premium housing continued to dominate India’s residential real estate market in the first half of 2025, with nearly every second home sold priced above ₹1 crore. According to Knight Frank India’s latest report, 49% of the 1.7 lakh housing units sold across the top eight cities during January–June 2025 were in the premium category, even as overall housing sales recorded a marginal 2% decline year-on-year.
The trend reflects a shift in buyer preference amid a constrained supply of affordable housing and an uptick in mid-to-high-income demand. NCR reported the highest concentration of premium housing sales, with 81% of all residential transactions in the region comprising homes priced over ₹1 crore. Bengaluru followed with 70% of its total sales in this category, while Mumbai, traditionally the most expensive residential market, saw 36% of its homes sold in the same price bracket.
Luxury housing—properties priced between ₹20 crore and ₹50 crore—also gained traction, registering a 29% increase in sales during the period. In contrast, homes priced below ₹50 lakh saw sales fall 18% year-on-year to 37,796 units, with a sharper 43% decline when compared to H1 2018. Bengaluru witnessed the steepest drop in affordable housing demand, with sales in the under-₹50 lakh segment plunging by 85% from 2018 levels.
Supply in the affordable segment remained constrained. New launches in the sub-₹50 lakh category fell 31% year-on-year to 30,806 units, indicating challenges in both availability and pricing feasibility.
Price category wise sales (H1 2025)
Despite subdued overall sales volumes, residential prices continued to firm up across most major cities. NCR and Bengaluru led the growth with a 14% year-on-year increase in average prices, followed by Hyderabad at 11% and Chennai at 9%. Mumbai remained the costliest market with an average price of ₹8,532 per sq ft, reflecting an 8% increase over the same period last year.
Unsold inventory across India’s top eight residential markets remained largely stable, rising 4% year-on-year to 5.05 lakh units. The quarters-to-sell (QTS) ratio, a key gauge of market health, held steady at 5.8 quarters. Homes in the ₹2–5 crore category demonstrated the fastest absorption at 3.9 quarters, while ultra-luxury inventory in the ₹20–50 crore range had a QTS of 17.1 quarters.
Chennai was the only metro to buck the broader sales trend, registering a 12% year-on-year growth in total residential sales. Cities like Kolkata and NCR posted double-digit declines, underscoring the uneven recovery across geographies.
