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.

Mumbai's property market delivered its strongest performance in over a decade, with registrations in the municipal region reaching 1,50,231 units during 2025, marking a 6% increase from the previous year. This figure represents the highest level of property registrations recorded in the city in 14 years, according to data released by real estate consultant Knight Frank India.

Annual Performance Shows Strong Market Recovery

The robust performance becomes evident when comparing year-over-year figures. State government data cited by Knight Frank reveals the significant improvement in market activity:

This growth trajectory demonstrates the underlying strength of Mumbai's housing market, encompassing both primary and secondary market transactions within the BMC jurisdiction.

December 2025 Maintains Strong Momentum

The year-end performance further reinforced the positive trend, with December 2025 recording particularly strong numbers:

The 16% month-on-month growth in December registrations indicates sustained momentum, with residential properties dominating the registration landscape by accounting for four-fifths of all transactions.

Market Fundamentals Drive Performance

Shishir Baijal, Chairman and Managing Director of Knight Frank India, attributed the milestone achievement to several key factors. "2025 marked a steady and mature phase for Mumbai's housing market, with property registrations crossing 1.50 lakh, the highest level seen in the last 14 years," he stated.

The performance reflects what industry experts characterize as improved market fundamentals:

• Sustained end-user demand driving transaction volumes
• Enhanced supply-side ecosystem supporting market activity
• Market resilience demonstrated through consistent growth
• Mature market phase indicating stable, long-term growth patterns

Comprehensive Market Coverage

The registration data encompasses the complete spectrum of Mumbai's housing market, covering transactions across both primary and secondary market segments. This comprehensive coverage provides a complete picture of property market activity within the Mumbai municipal region, offering insights into overall market health and buyer sentiment across different property categories and price segments.