India’s housing market continued its upward momentum in the first quarter of 2025, with property prices rising across all major cities, driven by strong demand for premium, high-rise developments, particularly in key metropolitan areas, fuelling the appreciation.
Among the top eight cities, Bengaluru and the National Capital Region (NCR) recorded the highest on-year growth at 16% and 12%, respectively. Mumbai remained the most expensive market, with average prices witnessing a 6% growth, showed data from Knight Frank India.
Hyderabad and Kolkata posted 9% annual growth, while Chennai saw a 7% increase. Ahmedabad recorded the slowest growth at 2%.
“The real estate market has remained strong 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,” Shishir Baijal, CMD, Knight Frank India.
Quarter-on-quarter, prices either remained stable or grew across markets, with Bengaluru’s 7% and NCR’s 6% again leading the pack. Experts attribute the continued rise to strong economic activity and sustained demand for high-quality residential spaces.
The current quarter-to-sell (QTS) level, indicating inventory, remains stable at 5.9 quarters, unchanged from last year, showing that sales are keeping pace with inventory growth. In the Rs 2–5 crore and R 5–10 crore segments, QTS levels are 4.0 and 3.6 quarters, indicating no immediate inventory concerns.
However, the segment with prices above Rs 50 crore has a higher QTS of 7.3 quarters, while the R 20–50 crore segment stands at 18.1 quarters. The ultra-luxury market is small, with fewer than 1,500 units in these two segments combined, making QTS highly sensitive to minor shifts in supply or sales.
The March quarter performance showed the continued stability of India's residential sector with primary residential sales touching 88,274 units, up 2% from a year ago. While overall sales remained steady, performance varied across key markets.
Five of the eight tracked cities saw growth in sales, with Pune and Chennai leading with 20% and 10% growth in primary unit sales, respectively. Mumbai remained the largest residential market recording its highest quarterly sales volume since the first quarter of 2018, reaching 24,930 units, up 5% from a year ago, the data showed.
The housing segment priced above Rs 1 crore drove the market, accounting for 46% of sales, up from 40% in the first quarter of 2024. Sales rose 16% year-on-year to 40,432 units, while ultra-luxury homes priced at Rs 50 crore and above saw a 483% surge.
In contrast, sales in the sub-Rs 50 lakh category fell 9%, reflecting a shift toward larger, premium homes. New supply outpaced demand for the tenth straight quarter, with 96,309 units launched, a 3% year-on-year rise.
Among the top eight cities, Bengaluru and the National Capital Region (NCR) recorded the highest on-year growth at 16% and 12%, respectively. Mumbai remained the most expensive market, with average prices witnessing a 6% growth, showed data from Knight Frank India.
Hyderabad and Kolkata posted 9% annual growth, while Chennai saw a 7% increase. Ahmedabad recorded the slowest growth at 2%.
“The real estate market has remained strong 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,” Shishir Baijal, CMD, Knight Frank India.
Quarter-on-quarter, prices either remained stable or grew across markets, with Bengaluru’s 7% and NCR’s 6% again leading the pack. Experts attribute the continued rise to strong economic activity and sustained demand for high-quality residential spaces.
The current quarter-to-sell (QTS) level, indicating inventory, remains stable at 5.9 quarters, unchanged from last year, showing that sales are keeping pace with inventory growth. In the Rs 2–5 crore and R 5–10 crore segments, QTS levels are 4.0 and 3.6 quarters, indicating no immediate inventory concerns.
However, the segment with prices above Rs 50 crore has a higher QTS of 7.3 quarters, while the R 20–50 crore segment stands at 18.1 quarters. The ultra-luxury market is small, with fewer than 1,500 units in these two segments combined, making QTS highly sensitive to minor shifts in supply or sales.
The March quarter performance showed the continued stability of India's residential sector with primary residential sales touching 88,274 units, up 2% from a year ago. While overall sales remained steady, performance varied across key markets.
Five of the eight tracked cities saw growth in sales, with Pune and Chennai leading with 20% and 10% growth in primary unit sales, respectively. Mumbai remained the largest residential market recording its highest quarterly sales volume since the first quarter of 2018, reaching 24,930 units, up 5% from a year ago, the data showed.
The housing segment priced above Rs 1 crore drove the market, accounting for 46% of sales, up from 40% in the first quarter of 2024. Sales rose 16% year-on-year to 40,432 units, while ultra-luxury homes priced at Rs 50 crore and above saw a 483% surge.
In contrast, sales in the sub-Rs 50 lakh category fell 9%, reflecting a shift toward larger, premium homes. New supply outpaced demand for the tenth straight quarter, with 96,309 units launched, a 3% year-on-year rise.
