India has secured a position among the top ten global markets, witnessing a significant 9.6% year-on-year increase in residential prices. The real estate services firm Knight Frank’s report attributed this growth to strong domestic demand, enhanced affordability, and a stable macroeconomic environment. Residential sales in the top eight cities remained steady in 2025, surpassing 3.48 lakh units, with the second half of the year marking the highest volumes since 2013.
Market health indicators remained balanced, with the quarters-to-sell ratio holding at 5.8 quarters, despite a surge in unsold inventory primarily due to the launch of higher-value projects. Price growth was widespread, with the National Capital Region leading at 19%, followed by Hyderabad at 13%, Bengaluru at 12%, and Mumbai at 7%. The report noted that this price surge was driven by premium and mid-to-premium housing segments, supported by interest rate cuts, low inflation, and increasing household incomes.
The report highlighted a structural shift in the market, with homes priced above Rs 1 crore constituting approximately 50% of total residential sales. Developers have been focusing on execution efficiency, offering financing incentives, and avoiding price cuts to sustain absorption momentum. Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, emphasized India’s unique position in the global housing market, characterized by strong economic growth and end-user-driven demand.
Looking ahead to 2026, the market is expected to witness stable absorption, selective price appreciation, and disciplined supply, moving away from speculative practices. Globally, housing markets experienced a modest strengthening in price growth in Q3 2025, supported by easing monetary conditions.
