Premium homes account for half of India’s housing sales in 2025: Knight Frank

In contrast, demand at the lower end of the market continued to weaken. Sales in the sub-₹50 lakh segment fell 17% year-on-year to 73,694 units, reducing its share to 21% of total transactions. The mid-segment, priced between ₹50 lakh and ₹1 crore, also declined 8% to 99,422 units, further underlining pressure in the affordable and lower mid-income categories.

Supply, prices, and inventory remain stable

The premium tilt has also been supported by steady price appreciation across major cities. Weighted average residential prices rose across leading markets in 2025, led by NCR with a 19% year-on-year increase, followed by Hyderabad (13%), Bengaluru (12%) and Mumbai (7%).

On the supply side, total launches during the year stood at 3,62,184 units, a marginal 3% decline compared with 2024. While launches outpaced sales in some markets, overall inventory levels remain stable. Unsold inventory across the top eight cities stood at 5,09,815 units at the end of 2025. The quarters-to-sell ratio remained steady at 5.8 quarters, indicating balanced absorption and disciplined supply additions.