Sales Momentum Holds Firm Despite Expectations of Correction
Mumbai, October 07, 2025 — India’s residential real estate market maintained steady growth in the third quarter of 2025, driven by strong demand for premium homes. According to Knight Frank India’s quarterly update, 87,603 housing units were sold across the top eight cities in Q3 2025 — a 1% year-on-year (YoY) increase, defying expectations of a slowdown.
Supply remained stable, with 88,655 new units launched, a marginal 2% YoY decline. Price growth persisted across all markets, underpinned by easing inflation, improved liquidity, and supportive macroeconomic conditions.
Inflation cooled to 2.07% in August 2025, down from 3.65% a year ago. The RBI’s FY 2026 GDP forecast was raised to 6.8%, and the repo rate stood 100 bps lower than end-2024 — factors that bolstered end-user confidence and homebuying sentiment.
City-wise Residential Sales Performance — Q3 2025
| City | Q3 2025 Sales | YoY % Change | Jan–Sep 2025 (YTD) Sales | YTD % Change |
|---|---|---|---|---|
| Mumbai | 24,706 | 2% | 71,741 | 0% |
| Bengaluru | 14,538 | 0% | 41,538 | -2% |
| NCR | 12,955 | 0% | 39,750 | -5% |
| Pune | 12,118 | -8% | 36,447 | -3% |
| Hyderabad | 9,601 | 5% | 28,649 | 3% |
| Ahmedabad | 4,694 | 3% | 14,064 | 1% |
| Chennai | 4,617 | 12% | 13,552 | 12% |
| Kolkata | 4,374 | 2% | 12,464 | -7% |
| Total | 87,603 | 1% | 257,804 | -1% |
Mumbai led with 24,706 units sold, contributing 28% of total sales. Chennai stood out with 12% YoY growth, its highest post-pandemic performance. NCR and Bengaluru maintained steady volumes, while Pune was the only laggard with an 8% decline.
Premium Housing Emerges as Growth Driver
Premium housing continued its upward trajectory, marking a structural shift in buyer demand. Units priced below ₹1 crore saw their share of sales decline to 48% in Q3 2025 from 54% a year earlier. In contrast, sales of homes priced over ₹1 crore rose to 52%, growing 15% YoY.
The ₹1–2 crore segment accounted for 28% of total sales, making it the largest by volume. Ultra-luxury categories like ₹10–20 crore recorded a 170% surge YoY, albeit on a lower base.
Ticket-Size Segment Sales — Q3 2025
| Ticket Size | Units Sold | YoY % Change |
|---|---|---|
| < ₹50 L | 17,463 | -16% |
| ₹50 L – 1 Cr | 24,693 | -5% |
| ₹1 – 2 Cr | 24,944 | 17% |
| ₹2 – 5 Cr | 14,982 | -2% |
| ₹5 – 10 Cr | 4,539 | 33% |
| ₹10 – 20 Cr | 860 | 170% |
| ₹20 – 50 Cr | 101 | 34% |
| > ₹50 Cr | 20 | -36% |
| Total | 87,603 | 1% |
Gulam Zia, Senior Executive Director – Valuation, Advisory and Research, Knight Frank India, observed that premium housing has “decisively taken centre stage,” reflecting changing urban aspirations for larger, better-quality homes.
New Launches See Mixed Trends
New residential launches across the top eight markets dipped slightly by 2% YoY to 88,655 units. Growth was led by Chennai (+44%) and Bengaluru (+28%), while Mumbai and NCR saw sharp declines of 19% each, weighing on overall supply.
| City | Q3 2025 Launches | YoY % Change | YTD Launches | YTD % Change |
|---|---|---|---|---|
| Mumbai | 19,145 | -19% | 64,596 | -9% |
| Bengaluru | 17,817 | 28% | 51,315 | 30% |
| NCR | 10,657 | -19% | 35,890 | -18% |
| Pune | 15,234 | 1% | 41,793 | -3% |
| Hyderabad | 9,764 | -10% | 30,726 | -7% |
| Ahmedabad | 5,797 | 2% | 16,531 | 4% |
| Chennai | 6,172 | 44% | 15,793 | 20% |
| Kolkata | 4,069 | 8% | 11,751 | -20% |
| Total | 88,655 | -2% | 268,395 | -2% |
Price Growth Remains Broad-Based
Average residential prices rose across all markets in Q3 2025, led by NCR (+19%), followed by Bengaluru (+15%) and Hyderabad (+13%). Even with moderate sales growth, robust price appreciation points to sustained demand and limited immediate supply pressures.
| City | YoY Price Change | QoQ Change |
|---|---|---|
| NCR | 19% | 3% |
| Bengaluru | 15% | 4% |
| Hyderabad | 13% | 5% |
| Chennai | 9% | 2% |
| Kolkata | 8% | 1% |
| Mumbai | 7% | 1% |
| Pune | 5% | 1% |
| Ahmedabad | 2% | 0% |
Inventory Health Stays Stable
The Quarters to Sell (QTS) — a key indicator of market health — remained stable at 5.8 quarters, equivalent to less than 18 months of inventory. Unsold inventory rose 4% YoY to 506,400 units, but stable sales velocity over the past eight quarters indicates healthy absorption.
Notably, unsold inventory in higher ticket-size segments (above ₹2 crore) has risen faster than in the affordable categories, particularly in the ₹20–50 crore range where QTS stretched to 14.4 quarters, indicating slower absorption in ultra-luxury homes.
Market Outlook: Plateau Phase Likely Ahead
Shishir Baijal, Chairman & Managing Director, Knight Frank India, noted that India’s housing market is now in its fifth year of an upcycle, and the YoY growth rates are beginning to rationalise. He indicated the market may be entering a prolonged plateau phase, supported by stable macroeconomic conditions and evolving buyer preferences.
Financing innovations, subvention schemes, and fiscal incentives continue to channel demand toward higher-value segments, ensuring resilience even amid geopolitical uncertainties.
Also Read: Home Sales Up By 12% In India.
