1.7 lakh homes sold across top eight cities in H12025; NCR overtakes Mumbai in ultra luxury housing segment

Mumbai remained the largest residential market by volume, with sales holding steady year-on-year. NCR recorded an 8% decline, while sales in Kolkata dropped 11%. Chennai was the only city to buck the trend, posting a 12% increase in sales, according to Knight Frank India’s India Real Estate: Office and Residential Market – January to June 2025 (H1 2025) report.

The ₹1–5 crore bracket emerged as the most active, accounting for 75,042 units, followed by 48,972 units in the ₹50 lakh– ₹1 crore range, and 37,796 units priced below ₹50 lakh, a report by Knight Frank India said on July 3.

NCR also recorded the highest sales in the ultra-luxury segments, with 1,055 homes sold in the ₹10– ₹20 crore range and 159 homes priced above ₹50 crore, overtaking Mumbai in this segment. Mumbai led the ₹20– ₹50 crore segment with 124 units sold, the report noted.

The trend that prevailed is the premiumisation of the residential segment across the markets. Almost 49% of all home sales were for homes costing ₹1 crore and above which saw sales of 83,433 units across the key markets, while 51% was in the category of up to ₹1 crore with sales amounting to 86,768 units in H1 2025, the Knight Frank India report noted. 

New launches at 179,740 units continued to exceed sales during the period, the report noted.

The eight cities included Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad and Pune.

Also Read: Chennai only city to see increase in housing demand as overall sales drop 20% in April–June quarter

As for real estate prices, the weighted average prices across the markets saw a rise in H1 2025 both in YoY terms as well as sequentially over the preceding 6 months period. Mumbai saw a rise of 8% with the weighted average going up to ₹8,532 per square feet (sq ft).  NCR ( ₹5,535 per sq ft) and Bengaluru ( ₹7,052 per sq ft) both registered a rise of 14% YoY. The Hyderabad market saw a rise of 11% in weighted average prices for the city which was recorded at ₹6,326 per sq ft. 

Mumbai highest contributor in less than ₹1 crore sales

In the housing segment costing less than ₹1 crore, Mumbai was the highest contributor with sales of 30,333 units followed by Ahmedabad which recorded sales of 18,083 homes in this price category, the report noted. 

NCR overtakes Mumbai in the ultra-luxury segment

NCR takes the lead in sales of homes costing more than ₹1 crore recording sales of 21,828 units (81% of all sales in the city) in the first half of the year. Bengaluru recorded sales of 18,629 units (70% of the total sales) in this segment. Mumbai, even though considered to be India’s most expensive residential market based on weighted average prices, saw sales of 16,702 units costing more than ₹1 crore making up a modest 36% of the sales. 

In the affordable segment (under ₹50 lakh), Mumbai dominated with 18,604 sales, followed by NCR (1,815) and Bengaluru (1,583).

Mumbai also topped the ₹50 lakh– ₹1 crore housing sales category with 11,729 units sold, while Bengaluru and NCR recorded 6,387 and 3,152 sales, respectively.

Bengaluru led the ₹1– ₹5 crore segment with 18,299 units sold, followed by NCR (16,416) and Mumbai (15,270).

In the ₹5– ₹10 crore housing segment, NCR led with 4,158 sales, followed by Mumbai with 1,075 units. NCR also topped the ₹10– ₹20 crore category with 1,055 sales, while Mumbai recorded 199.

Mumbai led the ₹20– ₹50 crore segment with 124 sales, whereas NCR took the lead in the ultra-luxury category of homes priced above ₹50 crore, registering 159 deals, followed by Mumbai with 34.

“The residential market in H1 2025 reflected a nuanced shift where premium and luxury segments continued to thrive, even as lower value segments showed signs of continued moderation. Homes priced above ₹10 mn now constitute nearly half of all sales—an indicator of changing buyer priorities and rising aspirations. Besides, RBI’s cumulative 100 bps policy rate cut, and improved liquidity will further help in supporting housing demand, especially at the lower and mid value categories,” said Shishir Baijal, chairman and managing director, Knight Frank India.

Unsold inventory increased by 4% to 5,05,377 units in H1 2025. However, the marginal rise in this inventory may not be seen as a challenge as overall Quarters-to-Sell (QTS) ratio held steady at 5.8 quarters, depicting a still healthy market. Notably, the QTS in the ₹2 to ₹5 crore segment remained better than the market average at 3.9 quarters, while ultra-luxury units in the ₹20 to ₹50 crore recorded a QTS of 17.1 quarters, indicating slower absorption rate.

Affordable homes see a decline in sales

Homes costing less than ₹50 lakh saw a steady decline in sales. On a pan- India basis, in H1 2025, sales of homes costing up to ₹50 lakh were recorded at 37,796 units, lower by 18% YoY and by 43% since H1 2028. 

In Bengaluru, this category recorded sales of only 1,583 units indicating a drop of 18% YoY for H1 2025 but when compared to H1 2018, the decline is a significant 85%. Mumbai (albeit on a much larger base than most other markets) recorded the least amount of decline in this category at -11% YoY in H1 2025 and has seen an increase of 10% in volume of sales when compared to H1 2018. 

The primary challenge for this category has been the declining supply of new homes. H1 2025 saw a total supply of 30,806 units registering a YoY decline of 31%. This is lower than sales by a significant 23% and corroborates the rationale that the dearth of viable supply is a major challenge here, the report added.