Premium Homes Drive India Housing Market in H1 2025

Housing sales across India’s top eight cities witnessed a marginal 2 percent year-on-year decline in the first half of 2025, totaling 1,70,201 units, according to Knight Frank India’s latest report.

Despite the overall dip, the premium housing segment (Rs. 1 crore and above) recorded a notable 17% YoY growth, with nearly half (49 percent) of all home sales in this category. Mumbai led in overall volume with 47,035 units sold, followed by Delhi-NCR (26,795) and Bengaluru (26,599). Interestingly, NCR overtook Mumbai in ultra-luxury sales, leading in all brackets above Rs. 10 crore, including 159 homes sold above Rs. 50 crore. Chennai was the only city to register positive sales growth (12 percent) YoY.

Key Highlights

• Rs. 1 crore+ homes rose 17 percent YoY, making up 49 percent of total sales
• NCR surpassed Mumbai in sales of homes priced above Rs. 10 crore
• New launches outpaced sales, with 179,740 new units across 8 cities

The Rs. 1–5 crore price band emerged as the most active, contributing 75,042 units, while homes priced below Rs. 50 lakh accounted for 37,796 units. Mumbai dominated affordable housing (<Rs. 50 lakh) with 18,604 units sold. Bengaluru led the Rs. 1– Rs. 5 crore category.

New residential launches across the eight cities stood at 1,79,740 units, continuing to outpace sales, indicating a build-up in inventory. Weighted average prices rose across markets, with NCR and Bengaluru recording a 14 percent YoY increase. Mumbai’s average prices reached Rs. 8,532 per sq ft with an 8% rise.

The report underscores the premiumisation trend shaping India’s residential real estate, with increasing buyer preference for high-value homes and sustained momentum in new project launches. This signals investor confidence in luxury housing despite a slowdown in lower-end segments.

Also Read: Greater Noida Surpasses NCR! Records 98% Property Price Jump in 5 Years

“Mumbai has traditionally held the distinction of being India’s most expensive housing market, with some of the country’s highest-priced apartments sold here. However, over the past year, Delhi appears to have taken the lead in premium apartment sales across categories. Be it the Rs. 10–20 crore, Rs. 20–50 crore, or Rs. 50+ cr segments—Delhi is now clearly setting the pace,” said Gulam Zia, Senior Executive Director - Research, Advisory, Infrastructure, and Valuation, Knight Frank India.