Mumbai, Feb 27: Knight Frank India, in its flagship report India Real Estate: Office and Residential Market, has highlighted a decisive structural shift in the country’s housing landscape. Homes priced above INR 1 crore now account for 50% of total residential sales across the top eight cities in 2025, underscoring the growing dominance of premium housing.
Out of 3,48,247 units sold during 2025, 175,091 units were in the INR 1 crore-plus category, marking a 14% year-on-year (YoY) growth. While overall annual sales remained broadly stable at elevated levels, the demand mix has clearly tilted toward higher-value homes.
Ticket Size Split Reflects Structural Transition
| Year | < INR 50 lakh | INR 50 lakh – 1 cr | > INR 1 cr |
|---|---|---|---|
| 2024 | 25% | 31% | 44% |
| 2025 | 21% | 29% | 50% |
Source: Knight Frank Research
The sub-INR 50 lakh segment recorded a sharp 17% YoY decline to 73,694 units in 2025, reducing its share to 21% of overall sales—down significantly from nearly 37% in 2022.
The mid-segment (INR 50 lakh to INR 1 crore) also moderated, declining 8% YoY to 99,422 units, highlighting weaker traction in price categories below INR 1 crore.
Launch Activity Remains Measured
Despite selective moderation, developers continued calibrated supply additions across key markets:
Total Launches (Top 8 Cities)
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H2 2025: 182,444 units (-4% YoY)
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Full Year 2025: 362,184 units (-3% YoY)
Bengaluru and Chennai recorded notable annual launch growth at 23% and 20% respectively, while Mumbai, NCR, Pune and Hyderabad saw moderation.
Leadership Commentary
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said:
“The fact that homes priced above INR 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. Improved affordability metrics, rising incomes and long-term urban confidence have enabled buyers to move up the value curve, reshaping the composition of demand.”
He further added:
“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.”
Market Health Remains Stable
Unsold inventory across the top eight cities stood at 509,815 units at the end of 2025, with the quarters-to-sell (QTS) ratio steady at 5.8 quarters—indicating efficient absorption and disciplined supply.
Premium segments showed healthy absorption despite rising inventory levels in select high-value categories. Meanwhile, the affordable segment recorded a 7% YoY decline in unsold stock, though demand softness persists.
Price Growth Supports Premium Momentum
Weighted average residential prices rose across all leading markets in 2025:
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NCR: +19% YoY
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Hyderabad: +13%
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Bengaluru: +12%
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Mumbai: +7%
A higher proportion of launches in premium categories has further reinforced the shift toward higher ticket-size homes.
Outlook
With premium housing now accounting for half of all residential transactions, India’s residential market is entering a consolidation phase driven by higher-value demand. While rapid volume expansion may moderate, stable absorption, selective price appreciation, and disciplined supply are expected to define market dynamics in 2026.