India’s residential market witnessed a slight 1% increase in sales during the first half of this year, with 171,471 units sold across eight major cities. According to a report by Knight Frank India, developers launched 1,87,350 units, marking a 4% rise compared to the previous year. The market has shifted towards premium housing, with homes priced above Rs 10 million constituting 54% of total sales, reflecting a demand from higher-income households.
Stable economic fundamentals, infrastructure development, and steady employment conditions have supported the residential sector in India’s key markets. Despite evolving buyer preferences and higher prices, developers have maintained a balanced approach to new supply. The market has seen a stabilization phase rather than significant growth after four years of recovery, indicating a mature market scenario.
The report highlighted that the residential market has remained historically active, with a narrowing buyer base due to constrained new supply at lower price points. Premium homes now dominate sales, representing over half of all residential transactions. The rise in prices across markets has been more moderate compared to previous years, with Mumbai retaining its position as the most expensive residential market.
