Housing sales slip 1% in 2025; NCR sees biggest decline among major cities: Knight Frank

Housing sales across India’s top eight cities dipped 1% year-on-year in 2025 to 3.48 lakh units as average residential prices rose by as much as 19% in key markets, according to a report by real estate consultant Knight Frank.

The report said that despite sustained concerns around a potential correction following a strong post-pandemic upcycle, particularly in the premium segment, market fundamentals remained resilient during the year.

Sales in the second half of 2025 edged up 0.4% year-on-year to 0.18 million units, marking the highest H2 sales volume since the end of 2013.

As per the data, the housing sales declined 1% in 2025 to 3,48,207 units across eight major cities of the country.

Knight Frank India CMD Shishir Baijal said the sales momentum continued last year despite rise in weighted average prices.

"The contribution of NRIs in housing sales has risen to 12-15 per cent from single digit a decade ago," he said at a virtual press conference.

On the outlook for 2026, Baijal said, "We are cautiously optimistic" for the residential market.

"I think the lowering of interest rates and the improving affordability should hopefully continue to promote residential sales," he said.

Among cities, four of the eight tracked markets reported annual sales growth.

Chennai led with a 12% increase, followed by Hyderabad at 4%.

Mumbai remained the largest market in absolute terms, with 97,188 units sold in 2025, including 47,035 units in the second half.

Sales declined in the National Capital Region (NCR) by 9% while prices appreciated 19% to Rs 6,028 per sq ft.

“NCR has historically been characterized by a higher degree of speculative activity and a relatively larger share of investor-driven demand,” the report said.

“Along with very low inventory availability in the mid and affordable segments in well-located micro-markets, this constrained overall sales momentum in 2025,” it added.

In Pune, the sales dipped 3% to 50,881 units, but prices appreciated 5% to ₹5,016 per sq ft.

Sales in Hyderabad grew 4% to 38,403 units, while prices rose 13% to ₹6,721 per sq ft.

In Ahmedabad, housing sales rose 2% to 18,752 units. Prices in the Gujarat capital grew 3% to ₹3,197 per sq ft.

On the supply side, new residential launches fell 3% year-on-year to 0.36 million units in 2025, though this was still the second-highest annual launch volume since 2014.

Supply continued to be skewed towards higher ticket sizes, with launches priced above ₹1 crore rising 12%, while launches below ₹50 lakh declined 28% and those in the ₹50 lakh–₹1 crore range fell 9%.

Sales in lower ticket segments also weakened, with units priced below ₹50 lakh and between ₹50 lakh and ₹1 crore declining 17% and 8%, respectively.

On the other hand, homes priced above ₹1 crore recorded 14% growth and accounted for 50% of total annual sales and 52% of sales in the second half of 2025.