India’s residential real estate market witnessed a broad-based increase in home prices in the first half of 2025, led by surging demand for premium homes. With a growing share of high-value transactions and sustained end-user appetite for upscale living, the pricing momentum has clearly shifted upward.
Average housing prices rose across all major cities, with the National Capital Region (NCR) and Bengaluru posting the steepest year-on-year gains of 14%, followed by Hyderabad at 11% and Mumbai at 8%, showed data from Knight Frank India.
This upswing in pricing was largely driven by a rise in the share of high-ticket home sales and a growing shift in supply toward premium inventory. Developers launched a larger proportion of homes in the Rs 1-5 crore and Rs 5-10 crore segments, pushing up weighted average prices across the board.
Mumbai remained the most expensive market, while Ahmedabad continued to be the most affordable among the top eight cities.
Of the 1.7 lakh housing units sold across the top eight markets, nearly half or 49% were priced above Rs 1 crore. Sales in the Rs 1-2 crore bracket rose 17% year-on-year, while those in the Rs 2-5 crore range surged by 29%, underscoring the shift in homebuyer preferences toward larger, better-located, and more amenity-rich residences.
Mumbai, NCR and Bengaluru led the premium segment by volume. NCR saw 81% of its sales in the Rs 1 crore-plus category, while Bengaluru recorded 70% and Mumbai 36%, the data showed.
In contrast, affordable housing, particularly homes priced below Rs 50 lakh, continued to lose steam, with sales down 18% year-on-year. New supply in this segment also dropped by 31%, highlighting limited developer interest in lower-margin offerings.
Still, the affordable and mid-income housing segments could see a turnaround in the coming quarters. The Reserve Bank of India’s cumulative 100-basis-point cut in policy rates over the past six months has lowered borrowing costs and may revive demand in the mass market, especially among first-time buyers.
Despite a 4% rise in unsold inventory to 5.05 lakh units, the overall market remained healthy with the Quarters-to-Sell (QTS) ratio steady at 5.8. Notably, the QTS for homes in the ?2–5 crore category was much healthier at 3.9 quarters, reflecting strong traction in the mid-premium range.
Average housing prices rose across all major cities, with the National Capital Region (NCR) and Bengaluru posting the steepest year-on-year gains of 14%, followed by Hyderabad at 11% and Mumbai at 8%, showed data from Knight Frank India.
This upswing in pricing was largely driven by a rise in the share of high-ticket home sales and a growing shift in supply toward premium inventory. Developers launched a larger proportion of homes in the Rs 1-5 crore and Rs 5-10 crore segments, pushing up weighted average prices across the board.
Mumbai remained the most expensive market, while Ahmedabad continued to be the most affordable among the top eight cities.
Of the 1.7 lakh housing units sold across the top eight markets, nearly half or 49% were priced above Rs 1 crore. Sales in the Rs 1-2 crore bracket rose 17% year-on-year, while those in the Rs 2-5 crore range surged by 29%, underscoring the shift in homebuyer preferences toward larger, better-located, and more amenity-rich residences.
Mumbai, NCR and Bengaluru led the premium segment by volume. NCR saw 81% of its sales in the Rs 1 crore-plus category, while Bengaluru recorded 70% and Mumbai 36%, the data showed.
In contrast, affordable housing, particularly homes priced below Rs 50 lakh, continued to lose steam, with sales down 18% year-on-year. New supply in this segment also dropped by 31%, highlighting limited developer interest in lower-margin offerings.
Still, the affordable and mid-income housing segments could see a turnaround in the coming quarters. The Reserve Bank of India’s cumulative 100-basis-point cut in policy rates over the past six months has lowered borrowing costs and may revive demand in the mass market, especially among first-time buyers.
Despite a 4% rise in unsold inventory to 5.05 lakh units, the overall market remained healthy with the Quarters-to-Sell (QTS) ratio steady at 5.8. Notably, the QTS for homes in the ?2–5 crore category was much healthier at 3.9 quarters, reflecting strong traction in the mid-premium range.
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