Thursday, 5 March 2026
India’s residential property market finished 2025 with mixed results, showing relative stability in sales values but a continued shift in buyer preference toward higher-priced homes. Recent industry reports suggest that although total unit sales were flat or slightly lower compared with 2024, housing prices increased across several major cities and the composition of new launches is moving increasingly toward premium segments.
According to a Knight Frank India report, total residential sales across the top eight cities reached around 348,000 units for the full year 2025, representing a marginal decline of about 1% compared with 2024. Despite the slight dip in volume, homes priced above ₹1 crore accounted for around half of all transactions, reflecting a noticeable tilt toward higher-value properties. This premium segment also saw year-on-year growth in absolute terms, while sales of more affordable units declined significantly.
Prices across many markets showed consistent growth in 2025. The National Capital Region recorded the highest year-on-year price increase of approximately 19%, followed by cities such as Hyderabad and Bengaluru, which also posted double-digit gains. Markets including Mumbai and Chennai recorded more moderate price rises, with improvements tied closely to demand for quality and location.
Information from Anarock Group indicates that in some markets, sales volumes declined more sharply — by as much as 14% year-on-year when viewed across seven major cities, while total sales value increased by an estimated 6%, supported by traction in higher-ticket homes.
Sales activity in the fourth quarter of 2025 softened across most regions, with home registrations and transactions slowing toward year-end. Meanwhile, new project launches also moderated compared with earlier periods, with industry analysts noting that developers increasingly focused on mid-to-high end segments where demand remains more resilient.
In the NCR region, the number of new project launches increased year-on-year in late 2025, a trend that market observers interpret as laying the groundwork for supply entering in 2026. Other major hubs such as Mumbai, Bengaluru and Hyderabad are also expected to see fresh launches in 2026, with developers targeting both premium corridors and expanding peripheral locations to capture evolving demand patterns.
Market data shows a continued divergence between price tiers. Homes in the high-value category have taken up a larger share of overall sales compared with lower-priced segments. Transactions for homes priced below ₹50 lakh (approx. 46,644 Euro) declined both in absolute numbers and as a share of total sales, while mid-market and luxury segments accounted for a growing portion of activity.
Industry analysts point to several factors underlying these shifts, including rising land and construction costs, tightening availability of well-located affordable inventory in certain micro-markets, and buyers’ growing preference for larger, better-amenitised homes. Demand conditions in urban centres are also influenced by broader economic factors such as income growth, household savings and urbanisation trends.
Looking ahead, developers and market watchers expect housing demand to remain concentrated in the mid-to-premium tiers, driven by end-user buyers and long-term residential needs. Affordable housing segments may see renewed policy support and supply initiatives, but price pressures and limited inventory have constrained activity in lower ticket categories.
As India’s residential real estate sector adjusts to changing demand dynamics, continued monitoring of price trends, inventory levels and affordability indicators will be critical in assessing market health and alignment with broader economic growth.
Source: CIJ.World India Research & Analysis Team
