Premium homes account for 50% of sales in top 8 cities: Knight Frank India

Knight Frank says 175,091 units priced above Rs 1 crore were sold in 2025, up 14% YoY, even as sub-Rs 50 lakh segment saw a 17% decline

Homes priced above Rs 1 crore accounted for 50 per cent of total residential sales across the top eight Indian cities in 2025, reflecting the growing dominance of premium housing in overall market activity, according to a report by Knight Frank India.

 

Out of 348,247 units sold during the year, 175,091 units were in the Rs 1 crore-plus category, marking a 14 per cent year-on-year (YoY) increase. The share of premium homes rose from 44 per cent in 2024, indicating a clear shift in buyer preference towards higher-value properties.

 

In contrast, the sub-Rs 50 lakh segment recorded a 17 per cent YoY decline, with sales falling to 73,694 units in 2025. This category now accounts for 21 per cent of overall sales, compared with nearly 25 per cent in 2024. The mid-segment, priced between Rs 50 lakh and Rs 1 crore, declined 8 per cent YoY to 99,422 units.

 

Shishir Baijal, International Partner, Chairperson and Managing Director, Knight Frank India, said the shift towards premium housing marks a defining milestone for the sector.

 

“The fact that homes priced above Rs 1 crore now constitute half of total residential sales is a defining milestone for the sector. Demand is increasingly being led by financially secure end-users upgrading to better-quality homes,” he said.

 

Prices and launches support premium tilt

 

The premium skew has been supported by sustained price growth across major cities. Weighted average residential prices rose across leading markets in 2025, led by the National Capital Region (NCR) at 19 per cent YoY, followed by Hyderabad (13 per cent), Bengaluru (12 per cent) and Mumbai (7 per cent).

 

A higher proportion of new launches in premium categories has reinforced this trend.

 

Despite launches outpacing sales in some markets, overall market health remains stable, the report said. Unsold inventory across the top eight cities stood at 509,815 units at the end of 2025. The quarters-to-sell (QTS) ratio remained steady at 5.8 quarters, indicating efficient absorption and disciplined supply additions.

 

Baijal added that premium housing has emerged as the principal anchor of India’s residential market.

 

“Larger cities continue to demonstrate strong absorption in higher ticket-size segments, while lower-priced segments remain under pressure. The current demand mix reflects a more mature, end-user-driven market supported by stable inventory levels and calibrated supply,” he said.

 

With premium housing now accounting for half of all residential transactions, the market appears to be entering a phase of consolidation, driven by higher-value demand. Knight Frank said that while rapid volume expansion may moderate, stable absorption and selective price appreciation are likely to define residential market dynamics in 2026, the report said.