Affordable segment slips with luxury units driving housing mkt for H1 2025

Sales of homes priced above ₹1 crore rose 17% year-on-year in H1 CY25, while affordable housing sales fell 18% due to demand and supply constraints, Knight Frank data shows

India’s residential real estate market recorded a shift in the first half of calendar year 2025 (H1 CY25), with premium housing units priced at ₹1 crore and above driving sales during the period.

 

According to a report by real estate analytics firm Knight Frank India, the country’s top eight cities recorded the sale of 170,201 housing units, reflecting sustained market momentum over the same period last year.

 

“Notably, the higher end of the market continued its strong run, with homes priced above ₹1 crore witnessing a robust 17 per cent year-on-year (Y-o-Y) growth in sales,” the report added.

 

This comes even as market dynamics indicate that luxury homes are being prioritised for their higher margins and faster turnaround times.

 

In terms of markets, the National Capital Region (NCR) took the lead in sales of homes costing ₹1 crore and above, recording 21,828 units—81 per cent of all sales in the city during H1 CY25.

 

Similarly, Bengaluru recorded sales of 18,629 premium units, accounting for 70 per cent of total city sales. 

 

The premium push, however, has come at the cost of affordable housing (units priced below ₹50 lakh), with the segment recording an 18 per cent Y-o-Y drop in sales—from 42,863 units in H1 CY24 to 37,796 in H1 CY25.

 

The report notes that the slide is primarily due to demand and inventory constraints. “H1 CY25 saw a total supply of 30,806 units, registering a Y-o-Y decline of 31 per cent. This is lower than affordable unit sales by a significant 23 per cent,” the report stated.

 

Shishir Baijal, Chairman and Managing Director at Knight Frank India, added that homes priced above ₹1 crore now constitute nearly half of all sales—an indicator of changing buyer priorities and rising aspirations.

 

Similarly, ultra-luxury units priced between ₹10 crore and ₹20 crore saw a 128 per cent Y-o-Y rise in sales.

 

Baijal added that the Reserve Bank of India’s cumulative 100-basis-point policy rate cut and improved liquidity will further support housing demand, especially in the lower and mid-value categories.

 

Overall, new residential launches at 179,740 units continued to exceed sales (170,201 units) during the six-month period, demonstrating developers’ continued confidence in long-term demand fundamentals.

 

“The steady activity across launches and high-value sales signals the sector’s growing maturity and the increasing appetite for quality housing,” the report stated.