Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, captured the essence of this shift: “The progress made in 2025 has reaffirmed our belief in the underlying strength of India’s real estate sector. What we are witnessing is not just a cyclical upswing, but a structural realignment built on genuine demand, better governance, maturing capital, and a deepening trust in India’s long-term economic trajectory.”

The Premium Housing Surge: Luxury Becomes the New Normal

If there’s one story that defined 2025 for homebuyers, it’s the unstoppable rise of premium and luxury properties. Homes priced above INR 10 million didn’t just perform well—they dominated, accounting for more than half of all sales across major cities. This isn’t about flashy speculation anymore; it’s driven by financially secure end-users who are investing in their dream lifestyles. Think spacious apartments with sustainable features, top-notch privacy, and smart tech integrations that make everyday living feel futuristic.

In hotspots like Bengaluru, Hyderabad, Chennai, and Delhi NCR, prices jumped by double digits, reflecting a perfect storm of limited high-quality supply and unwavering buyer confidence. Developers responded by doubling down on branded projects that emphasize eco-friendly designs and digital amenities, turning homes into personalized sanctuaries. For instance, sales figures for the first nine months of 2025 showed a robust 268,395 units sold, up from 260,349 in the same period of 2024, with launches keeping pace at 273,880 units compared to 257,804 the year before.

But this premium boom isn’t confined to the big cities. Tier-2 and Tier-3 markets are emerging as the unsung heroes of 2025’s real estate narrative. Improved infrastructure, rising household incomes, and state-level reforms have drawn buyers to places like Jaipur, Lucknow, and Coimbatore, where premium offerings are now viable. This decentralization is one of the decade’s biggest structural changes, making quality living more accessible beyond the metros and potentially easing urban pressures.

For aspiring homeowners eyeing that upscale upgrade, 2025’s trends suggest now might be the time to act—before prices climb even higher. Yet, this success story comes with a caveat: the very factors propelling premium homes are leaving the affordable segment in the dust.

The Affordable Housing Challenge: A Call for Policy Lifelines

While luxury pads flew off the shelves, affordable housing—typically aimed at middle- and lower-income families—faced headwinds that could stall broader market inclusivity. Rising input costs, from construction materials to labor, combined with limited financing options, squeezed developers and buyers alike. Knight Frank’s report flags this as a critical gap, urging targeted policy interventions to revive the segment and ensure real estate growth benefits all Indians.

Imagine a first-time buyer in a growing family, scouring for a modest home under INR 50 lakhs. In 2025, such options were harder to come by, overshadowed by the premium push. Without reforms—like subsidies, easier loans, or incentives for builders—the divide could widen, pricing out a huge swath of the population from homeownership. Baijal’s outlook underscores this: trust in the sector’s future hinges on bridging these gaps through better governance and execution.

Beyond Residential: Commercial and Emerging Sectors Fuel the Fire

The residential story is compelling, but 2025’s real estate triumph was sector-wide. The office market roared back with gross absorption projected to surpass 80 million square feet, led by global capability centers (GCCs) that cemented India’s role as a tech and innovation powerhouse. Multinationals, tech giants, and consultancies flocked to flexible workspaces, which saw record expansions into managed offices and specialized hubs. GCCs alone drove 37% of end-user demand in the first nine months, up from 31% in 2024, while flex spaces jumped to 21% from 19%.

Retail bounced back vibrantly, with malls and high streets evolving into experiential destinations—think curated dining spots, wellness zones, and interactive entertainment that boosted foot traffic and sales. Meanwhile, logistics, warehousing, and data centers emerged as investment darlings, attracting institutional funds amid e-commerce booms and digital infrastructure pushes. Warehousing transactions leaped to 66.7 million square feet in the first nine months, a 24% increase from 53.7 million in 2024, with premium Grade A spaces claiming 61% of the pie, up from 58%.

These trends paint a picture of a maturing market where every corner—from sleek offices to vast warehouses—is buzzing with opportunity, supported by India’s economic momentum.

Looking Ahead: 2026 and Beyond

Knight Frank anticipates the premium residential wave to continue into 2026, boosted by higher incomes and global ties. A potential dip in interest rates could spark a wave of first-time buyers, but the affordable and mid-income segments will need focused support to catch up. Commercial spaces will thrive on GCC and tech demand, with Tier-2 cities playing a bigger role in decentralizing growth.

For everyday readers and homebuyers, 2025’s lessons are clear: the real estate game favors the prepared. Whether you’re splurging on luxury or hunting for value, staying informed on policy shifts and market shifts could make all the difference. As Baijal puts it, the opportunities are “exciting and transformative”—but only if the sector grows inclusively.

Also Read: Affordable housing derailed, 6.1 lakh homes impacted

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Remarkably, sales of homes priced above INR 1 crore grew by 35% year-on-year, contributing 21% of all registrations by volume and a dominant 51% share by value. This reflects Hyderabad’s ongoing premiumization trend, with affluent buyers favoring larger, high-quality residences.

Properties sized over 2,000 sq ft accounted for 17% of all transactions, up from 14% in June 2024. The city’s Rangareddy district emerged as the most active market, representing 49% of total registrations and registering the sharpest price growth—a 20% year-on-year surge in weighted average transacted price.

Commenting on the trend, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Hyderabad is rapidly evolving as a premium residential market. High-value homes are driving overall growth even as the total number of transactions moderates. With supportive factors like home loan rates and economic sentiment, we expect the momentum to continue.”

Among the most significant deals in June were five transactions exceeding INR 5 crore, including a property in Shaikpet that sold for over INR 7.85 crore. Most of these premium sales were concentrated in West Hyderabad locations like Kondapur, Hi-Tech City, and Kokapet.

Overall, the city’s residential landscape reflects a clear preference shift toward larger, upscale properties, signaling confidence among high-net-worth buyers and steady demand for premium real estate.

Also Read: Corona may hit real estate hard

The post Hyderabad’s Premium Home Market Surges as High-Value Properties Dominate Sales appeared first on Square Feat India.

Q2 Housing Sales: MMR Tops Despite Nationwide Dip

India saw 96,285 units sold in Q2 2025, down from 1.2 lakh units in Q2 2024. MMR accounted for one-third of all sales, maintaining its lead despite a 25% annual decline.

City-wise Housing Absorption (Units Sold)

“The second quarter of 2025 was a rollercoaster for the housing sector. Global and domestic tensions led many buyers to pause. Yet, MMR remains the largest housing market,” said Anuj Puri, Chairman, ANAROCK Group.

New Launches Decline in MMR, But Remain Strong

New supply across India dropped 16% YoY, but MMR saw the highest number of units launched—28,165 units—despite an 8% drop over Q1.

City-wise New Launches (Units)

“Developers were cautious in Q2. MMR led supply but cut back compared to last year due to high inventory and price pressures,” said Puri.

Inventory & Price Trends: MMR Holds Despite Pressure

Unsold inventory across India marginally increased to 5.62 lakh units, while MMR still has one of the highest volumes. Yet, price hikes across cities continued, with NCR seeing a 27% YoY rise and Bengaluru 12%. MMR held steady with modest quarterly movement.

“If prices remain under control and interest rates stay low, we could see a rebound in Q3,” Puri added.

Segment Focus: Luxury Still Leads New Supply

• 46% of new launches were in the luxury & ultra-luxury segment (>INR 1.5 Cr)
• Mid (INR 40–80 lakh) and Premium (INR 80 lakh–1.5 Cr) segments saw 21% each
• Affordable housing contributed just 12%

MMR continues to focus heavily on mid and upper-mid segment housing, catering to aspirational buyers and investors alike.

Also Read: New Home Launches Dominate Sales in Top 7 Indian Cities in 2024

The post MMR Records Highest Home Sales in Q2 2025 Even as India Sees 20% Decline appeared first on Square Feat India.

The quarterly report reveals a notable shift towards premium properties, contributing to the increased average registered sales value, which stands at ₹0.69 crore—up 9% from the previous quarter. This trend underscores the market’s resilience and expanding appeal of high-value residential properties.

Market Leaders and Trends

Prestige Group emerged as the leading developer with the highest number of transactions, recording 255 units sold. Following closely, Godrej Properties secured 126 transactions. The Embassy Group topped the list for home sales value, amassing ₹391 crores, largely driven by their Embassy Springs project in Devanahalli. This indicates a strong demand for plotted developments in amenity-rich gated communities.

Top Developers by Transactions and Sales Value

In terms of transaction volume, the top developers for the April-June 2024 period are:

1. Prestige Group – 255 transactions
2. Godrej Properties – 126 transactions
3. Sattva Group – 113 transactions
4. Embassy Group – 108 transactions
5. Provident Housing – 107 transactions

For home sales value, the leaders are:

1. Embassy Group – ₹391 crores
2. Prestige Group – ₹264 crores
3. Godrej Properties – ₹88 crores

Micro Market Performance

North Bengaluru continues to lead the market, contributing 35% of the total transactions. Areas like Sadahalli and Devanahalli are notable hotspots, with Sadahalli recording the highest sales value and Devanahalli leading in transaction volume. South Bengaluru follows with a 30% share, where localities such as Electronic City and Jayanagar have shown strong performance.

Budget and Area-wise Trends

A significant 62% of transactions were for properties priced below ₹50 lakhs, while 23% were in the ₹50 lakhs to ₹1 crore range. Homes sized between 1,000 and 1,500 sq. ft. are in high demand, reflecting a preference for larger living spaces post-pandemic.

Outlook

Sopan Gupta, Principal Partner at Square Yards, highlighted the continued upward trajectory of Bengaluru’s residential market despite challenges like flooding and water shortages. He noted the resilience of homebuyer demand, supported by a strong IT sector and evolving work models. Gupta expressed optimism about the market’s future, driven by anticipated infrastructure upgrades and new IT parks that are expected to bolster both commercial and residential demand.

With ongoing developments and infrastructure improvements, Bengaluru’s residential real estate market is poised for sustained growth, with branded developers and quality projects set to lead the way.

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