Over 88,000 homes sold in Q1 2025, 46% of houses sold are above Rs 1 crore

Residential sales across India reached 88,274 units in the first quarter of 2025 ( January-March), a 2% year-on-year (YoY) increase and the premium housing segment with homes priced above Rs 1 crore was the key market driver, accounting for 46 per cent of the sales, shows data analysed by property consulting firm Knight Frank India. 

 

 Pune and Chennai lead the sales with 20% and 10% year on year growth in primary unit sales, respectively. Mumbai remained the largest residential market recording its highest quarterly sales volume since Q1 2018, reaching 24,930 units—a 5% year on year rise in Q1 2025.

 

 

 Notably, ultra-luxury homes (Rs 5 crore and above) recorded the highest yearly growth at 483%, increasing from 29 units in Q1 2024 to 169 units in Q1 2025. 

 

In contrast, sales in the sub-Rs 50 category declined by 9% on year, reflecting a shift in homebuyer preferences towards larger and more premium residences.

 

Supply of new units outpaced demand for the tenth consecutive quarter, with 96,309 units launched in Q1 2025, reflecting a 3% YoY increase.  

 

Bengaluru saw the highest launch growth at 26% YoY. Together, Mumbai and Bengaluru accounted for 44% of all units launched during the quarter. The market health remained stable as the quarters-to-sell (QTS) remained 5.9 quarters in Q1 2025. 

"The real estate market has remained resilient in the face of rising concerns of overheating in certain segments. The sustained premiumization trend reflects homebuyers’ aspirations for better lifestyles and larger living spaces. While some cities, like NCR and Bengaluru, saw a dip in sales due to significant rise in prices, the top end of the market remains robust. The interplay between developers and homebuyers in this evolving landscape will shape market trends for the remainder of the year," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

 

Mumbai retained its position as India’s largest residential market, marking a significant milestone by recording its highest sales volume since the first quarter of 2018. The city sold   24,930 units in Q1 2025, representing 28% of the total sales nationwide. Despite a dynamic market, Mumbai continues to dominate, reinforcing its status as the country’s real estate hub.

 

Pune, meanwhile, experienced the highest year-on-year (YoY) growth at 20%, while the National Capital Region (NCR) and Bengaluru saw modest declines in sales by 8% and 5%, respectively. However, NCR led the charge in premium property sales, dominating categories priced between Rs 2 crore and above, including Rs 2–5 crore, Rs 5–10 crore, Rs 10–20 crore, and Rs 50 crore and above in Q1 2025.

 

In terms of residential development, the market has outpaced sales since late 2022, as new projects have increasingly catered to higher-end categories. The Rs 1–2 crore segment saw the highest number of new launches, registering a notable 15% YoY increase from 24,927 units in Q1 2024 to 28,571 units in Q1 2025. On the other hand, launches in the sub-Rs 50 lakh and Rs 50–100 lakh categories declined by 19% and 8%, respectively, reflecting the shift in homebuyer preferences toward more premium properties.

 

One standout category in the first quarter of 2025 was the Rs 50 crore and above segment, which witnessed an extraordinary 341% surge in launches. This category, which saw only 75 units launched in Q1 2024, exploded to 331 units in Q1 2025, the highest growth rate among all price segments.

 

Sales Breakdown by Price Category

Below Rs 50 Lakh

The sub-Rs 50 lakh segment accounted for 24% of total sales, with 21,010 units sold in Q1 2025. However, sales in this category saw a 9% decline compared to the previous year, as higher property prices and a growing preference for premium properties dampened demand. Mumbai emerged as a major contributor, accounting for nearly 50% of sales in this segment with 10,121 units sold.

 

Rs 50–100 Lakh

Despite a 6% YoY dip, the INR 50–100 lakh segment recorded the highest sales traction, with 26,832 units sold across the country. This segment made up 30% of total residential sales volume. Pune led in this category with the largest market share, selling 6,690 units in 2024.

 

Rs 1–2 Crore

The Rs 1–2 crore segment was the second-highest in terms of sales volume, with 22,330 units sold, making up approximately 25% of total sales in Q1 2025. Mumbai and Bengaluru were the leading contributors to this category, with Mumbai accounting for 22% of the sales (4,865 units) and Bengaluru 20% (4,507 units).

 

Rs 2–5 Crore

An emerging category in the residential market, sales in the Rs 2–5 crore segment grew by 28% YoY, from 10,725 units in Q1 2024 to 13,735 units in Q1 2025. This category accounted for 16% of the total sales across the eight major markets. NCR emerged as the leader in this premium segment, contributing 36% of total sales with 4,968 units sold in Q1 2025.