Premium
housing demand strengthens as affordable sales fall 17% YoY in 2025: Knight
Frank India
·
Premium segments (INR 10 mn+) now
constitute 50% of total annual sales
·
New launches in sub-INR 5 mn category
witnessed a sharp contraction of 28% YoY
National, February 16, 2026: Knight Frank India, in its flagship report, India Real Estate: Office
and Residential Market H2 2025, highlighted an intensifying
shift in India’s residential landscape. While the overall market remained
resilient with 3,48,207 units sold in 2025 and sales of units priced over INR
10 mn rose by 14% year-on-year (YoY), the affordable housing segment– homes priced
under INR 5 mn experienced a significant decline of 17% YoY. An overall
India ticket size split comparison of sales
Source: Knight Frank Research
The
report notes that the slowdown is largely confined to lower ticket segments. In
fact, annual sales in the INR 5–10 mn category also shrunk by 8% YoY.
Consequently, homes priced above INR 10 mn now dominate the landscape leaving a
comparatively much smaller footprint of affordable housing sales across India.
This trend was particularly evident in cities like Delhi-NCR, which saw a 9%
decline in overall sales, and the affordable category sales fell by 25%
YoY in the region
Sales
|
City |
H2
2025 Units (YoY change) |
2025- Units (YoY change) |
|
Mumbai |
50,153 (3%) |
97,188 (1%) |
|
Bengaluru |
28,774 (3%) |
55,373 (0%) |
|
Pune |
26,592 (-4%) |
50,921 (-3%) |
|
NCR |
25,657 (-10%) |
52,452 (-9%) |
|
Ahmedabad |
19,355 (5%) |
38,403 (4%) |
|
Kolkata |
9,382 (3%) |
18,752 (2%) |
|
Hyderabad |
9,327 (13%) |
18,262 (12%) |
|
Chennai |
8,806 (7%) |
16,896 (-3%) |
|
Total |
178,046 (0%) |
348,247 (-1%) |
Source: Knight Frank Research
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “The overall residential market continues to exhibit underlying resilience, supported by a stable macroeconomic backdrop and recent repo rate cuts. However, the affordable housing segment faces pronounced pressures, with demand declining 17% YoY and supply contracting more sharply by 28% YoY.
This divergence signals a
structural shift in the market, as capital allocation and buyer preference
increasingly gravitate toward higher-value homes. The marked slowdown in new
affordable launches highlights developers’ reluctance to commit capital to this
segment, as they focus on premium housing, which is shaping the current housing
cycle.”
Ticket-size Segment
Health
|
Ticket-size segment |
Unsold
Inventory (housing
units) (YoY change) |
Quarters-to-sell (QTS) |
|
0
– 5 mn |
176,903 (-7%) |
8.7 |
|
5 – 10 mn |
136,569 (-3%) |
5.3 |
|
10 - 20 mn |
129,761 (14%) |
5.5 |
|
20 – 50 mn |
52,322 (40%) |
3.9 |
|
50 – 100 mn |
9,603 (-4%) |
2.9 |
|
100 – 200 mn |
2,929 (27%) |
5.2 |
|
200 – 500 mn |
1,239 (27%) |
15.8 |
|
>500 mn |
450 (48%) |
9.5 |
Source:
Knight Frank Research
In
2025, the affordable housing sector faced a significant supply crunch as well,
as developers pivoted away from lower-ticket projects, leading to a 28% YoY
drop in new launches for units priced under INR 5 mn and an 9% decline in
the INR 5–10 mn category. This lack of fresh supply resulted in 7%
contraction of unsold inventory in the sub-INR 5 mn segment, even as the
broader market underwent a major structural shift toward premiumisation.
INDIA
MARKET SUMMARY
|
Parameter |
2025 |
2025 Change (YoY) |
H2 2025 |
H2 2025 Change (YoY) |
|
Launces (housing units) |
362,148 |
-3% |
182,444 |
-4% |
|
Sales (housing units) |
348,247 |
-1% |
1,78,046 |
0% |
Source: Knight Frank Research
About Knight Frank
Knight Frank LLP is a leading independent, global property consultancy. Headquartered
in London, Knight Frank has more than 27,000 people operating from over 704
offices across 50+ markets. The Group advises clients ranging from individual owners and buyers to
major developers, investors, and corporate tenants. For
further information about the Company, please visit www.knightfrank.com
Knight Frank India is headquartered in Mumbai and has more than 1,900
experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad
and Indore. Backed by strong research and analytics, our experts offer a
comprehensive range of real estate services across advisory, valuation and
consulting, transactions (residential, commercial, retail, hospitality, land & capitals),
facilities management and project management. For more
information, visit www.knightfrank.co.in
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