Home sales slow but steady, prices jump up to 19% in top cities: Report

Mumbai, Delhi-NCR & Bengaluru see slower sales as home prices stay elevated

Housing demand in India’s key property markets showed signs of fatigue in 2025, even as home prices continued to climb sharply. Sales across the top eight cities dipped by 1 per cent last year, while average residential prices rose by as much as 19 per cent, according to data released by real estate consultant Knight Frank India.

 

The figures, shared during a virtual press conference on Wednesday, highlight a growing affordability challenge for homebuyers, particularly first-time purchasers, despite supportive macroeconomic conditions.

 

Sales hold up despite pressure on affordability

 

Knight Frank said housing sales stood at 348,207 units across eight major cities in 2025. The data relates only to the primary residential market. While the overall dip was marginal, it signals a phase of demand stagnation after several strong years.

 

 

The consultant noted that easing home loan interest rates, steady economic growth and lower inflation helped sustain buyer interest during the year, even as concerns around a market correction persisted.

 

Shishir Baijal, chairman and managing director of Knight Frank India, said sales momentum continued despite rising prices. He also pointed to a growing role of overseas buyers, noting that non-resident Indians now account for 12–15 per cent of housing sales, compared with single-digit levels a decade ago.

 

City-wise trends show sharp divergence

 

Housing market performance varied widely across cities, both in terms of sales and price growth:

 

·  Mumbai region: Sales rose 1 per cent to 97,188 units. Average prices increased 7 per cent to Rs 8,856 per sq ft.

 

·  Bengaluru: Sales were flat at 55,373 units, while prices jumped 12 per cent to Rs 7,388 per sq ft.

 

·  Pune: Sales declined 3 per cent to 50,881 units, with prices up 5 per cent at Rs 5,016 per sq ft.

 

·  Delhi-NCR: Sales fell sharply by 9 per cent to 52,452 units, but prices surged 19 per cent to Rs 6,028 per sq ft.

 

·  Hyderabad: Sales grew 4 per cent to 38,403 units, while prices rose 13 per cent to Rs 6,721 per sq ft.

 

·  Ahmedabad: Sales increased 2 per cent to 18,752 units, with a modest 3 per cent rise in prices to Rs 3,197 per sq ft.

 

·  Chennai: Sales jumped 12 per cent to 18,262 units, and prices climbed 7 per cent to Rs 5,135 per sq ft.

 

·  Kolkata: Sales dropped 3 per cent to 16,896 units, while prices increased 6 per cent to Rs 4,037 per sq ft.

 

What this means for buyers

 

For homebuyers, the data suggests a market where prices are running ahead of volumes. While lower interest rates offer some relief, sustained price growth could stretch budgets further in 2026. Buyers may need to be more selective on location and project quality, while developers could face pressure to balance pricing with demand as affordability becomes a key concern.

 

(with inputs from PTI)