Housing sales fell 1% last year to over 3.48 lakh units across eight major cities, with demand stagnating amid an average price rise of up to 19%, according to Knight Frank.
In a virtual press conference on Wednesday, real estate consultant Knight Frank India noted that the decline in interest rates on home loans, strong economic growth and lower inflation were some of the key factors that helped in sustaining the housing demand during the 2025 calendar year despite fears of an impending correction.
The data pertains to primary residential market only.
City-wise housing sales shows mixed trend
Among cities, sales of residential properties in Mumbai, Hyderabad, Chennai and Ahmedabad saw a rise. However, Pune and Delhi-NCR saw a decline while Bengaluru sales remained flat.
Sales in Mumbai region rose 1% to 97,188 units. The average housing price rose 7% in the country’s financial capital to Rs 8,856 per sq ft.
In Ahmedabad, housing sales rose 2% to 18,752 units. Prices in the Gujarat capital grew 3% to Rs 3,197 per sq ft. Sales in Hyderabad also grew 4% to 38,403 units, while prices rose 13% to Rs 6,721 per sq ft.
Chennai saw a 12 per cent growth in housing sales to 18,262 units. The Tamil Nadu capital witnessed a 7 per cent rise in average housing price to Rs 5135 per sq ft.
The housing sales in Bengaluru remained flat at 55,373 units while the average price grew 12% to Rs 7,388 per sq ft.
In Pune, the sales dipped 3% to 50,881 units, but prices appreciated 5% to Rs 5,016 per sq ft.
Delhi-NCR saw a 9% fall in sales last year to 52,452 units, while prices appreciated 19% to Rs 6,028 per sq ft.
Sales in Kolkata declined 3% annually during 2025 to 16,896 units. The average price of residential properties in the West Bengal capital increased 6 per cent to Rs 4,037 per sq ft.
Sales momentum intact despite rise in housing prices: Knight Frank
Knight Frank India CMD Shishir Baijal said the sales momentum continued last year despite rise in weighted average prices.
“The contribution of NRIs in housing sales has risen to 12-15 per cent from single digit a decade ago,” he said, according to PTI.
On the outlook for 2026, Baijal said, “We are cautiously optimistic” for the residential market.
“I think the lowering of interest rates and the improving affordability should hopefully continue to promote residential sales,” he said according to PTI.