Ultra-luxury home sales grow 483%, affordable segment falls: Knight Frank

Knight Frank says premium housing drove sales in Q1CY25

Primary residential sales in India reached 88,274 units in the first quarter (Q1) (January-March) of calendar year (CY) 2025, rising 2 per cent year-on-year (Y-o-Y) over the Q1CY24, according to Knight Frank India. 

 

While overall sales remained steady, performance varied across key markets. 

 

Five of the top eight Indian cities saw a growth in sales, with Pune and Chennai leading with 20 per cent and 10 per cent Y-o-Y growth in primary unit sales, respectively. 

 

Mumbai remained the largest residential market, recording its highest quarterly sales volume since Q1CY18, reaching 24,930 units – a 5 per cent Y-o-Y rise in Q1CY25.

   

Cities including the National Capital Region (NCR), Bengaluru, Hyderabad, and Kolkata saw a decline in sales by 1-8 per cent Y-o-Y. Sales in Ahmedabad remained more or less unchanged.

 

Premium housing (priced ₹1 crore and above) was the key market driver, accounting for 46 per cent of total sales, up from 40 per cent in Q1CY24. This segment saw a 16 per cent Y-o-Y growth, with 40,432 units sold in Q1CY25.

 

Ultra-luxury homes (₹50 crore and above) recorded the highest Y-o-Y growth at 483 per cent, increasing from 29 units in Q1CY24 to 169 units in Q1CY25.

 

In contrast, sales in the sub-₹50 lakh category declined by 9 per cent Y-o-Y.

 

Supply of new units outpaced demand for the tenth consecutive quarter, with 96,309 units launched in Q1CY25, reflecting a 3 per cent Y-o-Y increase. Bengaluru saw the highest growth in launches at 26 per cent Y-o-Y. Mumbai and Bengaluru together accounted for 44 per cent of all units launched during the quarter.

 

As of Q1CY25, the overall inventory in the market will need 5.9 quarters to be sold. However, the quarters to sell (QTS) level is higher at 7.3 quarters in the ₹50 crore and above segment and significantly elevated at 18.1 quarters in the ₹20-50 crore segment in Q3CY25.

 

Shishir Baijal, chairman and managing director, Knight Frank India, said, “While some cities, like NCR and Bengaluru, saw a dip in sales due to a 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.”

 

Price levels continued a strong run across all markets in Y-o-Y terms. Sequentially, they grew steadily in all markets. Price levels in Bengaluru and NCR saw exceptional growth at 16 per cent and 12 per cent Y-o-Y as the focus intensified toward the development of premium, high-rise properties. Prices in Mumbai grew by 6 per cent Y-o-Y.

 

Office segment continues to thrive

 

On the other hand, India’s top eight office markets witnessed an unprecedented surge in transactions, reaching 28.2 million square feet (msf) in Q1CY25 – the highest ever recorded in a single quarter. This marks a 74 per cent Y-o-Y growth, surpassing the previous peak in Q3CY24 by 48 per cent.

 

Bengaluru led office market expansion in Q1CY25 by recording 12.7 msf in transactions comprising 45 per cent of the total office space take-up.

 

The growth was led by space taken up by global capability centres, flex operators, third-party information technology services, and India-facing businesses.

 

Vacancy levels improved to 14.3 per cent, while rents increased 2-9 per cent across markets.