Housing sales across eight major Indian cities experienced a marginal decline of 1% in 2025, totaling 3,48,207 units, as average property prices surged up to 19%, according to Knight Frank India's latest market analysis. The real estate consultant attributed the sustained demand despite price pressures to declining home loan interest rates, robust economic growth, and controlled inflation levels.

Market Performance Overview

The primary residential market data revealed mixed performance across key metropolitan areas, with some cities showing resilience while others faced significant demand contraction.

Regional Market Dynamics

Mumbai region maintained its position as the largest housing market, recording 97,188 unit sales with a modest 1% growth. Despite being the most expensive market at ₹8,856 per sq ft, the financial capital showed price appreciation of 7%. Bengaluru's market remained stable with 55,373 units sold, though prices increased significantly by 12% to ₹7,388 per sq ft.

Delhi-NCR faced the steepest sales decline of 9%, with only 52,452 units sold, while simultaneously experiencing the highest price appreciation of 19% to ₹6,028 per sq ft. This combination suggests significant affordability challenges in the national capital region.

Emerging Market Trends

Chennai emerged as the standout performer with 12% sales growth, reaching 18,262 units, accompanied by a 7% price increase to ₹5,135 per sq ft. Hyderabad demonstrated healthy demand with 4% sales growth to 38,403 units, though prices rose 13% to ₹6,721 per sq ft.

Industry Insights and NRI Participation

Knight Frank India CMD Shishir Baijal highlighted the sustained sales momentum despite weighted average price increases across markets. The report noted a significant shift in buyer demographics, with NRI contribution to housing sales rising substantially to 12-15% from single digits a decade ago.

Baijal expressed cautious optimism for 2026, citing potential interest rate reductions and improving affordability as key factors that could support residential sales growth. The consultant emphasized that despite fears of market correction, fundamental economic indicators remained supportive of housing demand throughout 2025.

Housing sales across eight major Indian cities declined 1% to 3.48 lakh units, even as average property prices surged up to 19%, according to Knight Frank India. The real estate consultant attributed sustained housing demand despite price increases to declining home loan interest rates, strong economic growth, and lower inflation during the year.

In a virtual press conference, Knight Frank India CMD Shishir Baijal noted that sales momentum continued despite rise in weighted average prices across markets. The data pertains to primary residential market only, indicating new project sales rather than secondary market transactions.

Market Performance Overview

The primary residential market data reveals contrasting trends across different cities, with some markets showing growth while others experienced declines:

Regional Market Dynamics

Mumbai region maintained its position as the largest market with 97,188 units sold, representing a 1% increase. The financial capital also commanded the highest average price at ₹8,856 per sq ft, with a 7% appreciation. Chennai emerged as the standout performer with 12% growth in sales volume, while Hyderabad showed resilient demand with 4% sales growth.

Delhi-NCR presented a contrasting scenario with the steepest sales decline of 9% but the highest price appreciation at 19%. This divergence suggests supply constraints or premium positioning in the National Capital Region market. Bengaluru sales remained flat at 55,373 units while experiencing significant price growth of 12%.

Market Trends and Investor Participation

A significant trend highlighted was the growing contribution of Non-Resident Indians (NRIs) to housing sales, which has risen to 12-15% from single digits a decade ago, according to Baijal. This increased NRI participation reflects growing confidence in Indian real estate markets among overseas investors.

Despite overall market challenges and price pressures, the sustained demand reflects underlying economic fundamentals supporting the residential real estate sector across major Indian cities. The data encompasses only primary residential markets, indicating new project sales rather than secondary market transactions.