For the first time, homes priced above Rs 1 crore have crossed the halfway mark in the residential market, making up 52% of all units sold in the third quarter of this calendar year. According to a report by Knight Frank India, the premium housing segment now clearly drives market sentiment, shaping trends in both new launches and price growth.
“These segments (over Rs 1 crore) now constitute 52% of sales, 58% of launches and 37% of the inventory. They continue to influence the overall market health and price trajectory,” the consultancy said.
How much did sale of premium homes grow?
Sales of homes priced above Rs 1 crore grew 15% year-on-year, even as demand in the sub-Rs 1 crore segment weakened. Units priced below Rs 1 crore saw their share of total sales decline to 48% in Q3 2025 from 54% a year ago. Within the premium bracket, homes priced between Rs 1 crore and Rs 2 crore were the most popular, accounting for 28% of total sales. At the very top end, properties in the Rs 10–20 crore range, though starting from a smaller base, witnessed a remarkable 170% surge in sales compared to the same quarter last year.
Overall, residential property prices across major cities rose by an average of 10% in the third quarter, despite a modest 1% decline in total sales volumes. Cities such as the National Capital Region (NCR), Bengaluru and Hyderabad recorded the sharpest year-on-year price increases — 19%, 15 % and 13% respectively. Interestingly, while NCR and Bengaluru did not report any uptick in sales, Hyderabad stood out with a 5% rise in transactions during the period.
What did Gulam Zia Say?
“New project launches in recent months have been coming in at higher price points, which is why prices have firmed up sharply in some markets,” Gulam Zia, senior executive director at Knight Frank India, said.
Even as prices climbed, unsold housing stock edged up 4% to 506,429 units in Q3. The rise was more pronounced in higher ticket-size categories. Unsold inventory in the Rs 2–5 crore range was up 47% year-on-year, while that in the Rs 20–50 crore segment rose 19%. The consultancy attributed the increase to a combination of fresh launches and slower absorption in some pockets. “Some segments have seen a slowdown even as new projects have come in, leading to a build-up of unsold stock,” Zia said.
Despite the rise in inventory, the overall market remains stable. The quarters to sell (QTS) ratio, a measure of how long it would take to clear existing unsold stock at the current pace of sales, stayed steady at 5.8 quarters, or less than 18 months, indicating a balanced market. The luxury and super-luxury segments (homes priced above Rs 20 crore), though still niche, showed significant variation in QTS. The Rs 20–50 crore category recorded a QTS of 14.4 quarters, while properties above Rs 50 crore stood at 9 quarters, reflecting the segment’s volatility but also its growing depth.