India's real estate turns premium: US$ 112,688+ homes form 52% of Q3 home sales
- IBEF
- October 8, 2025
India’s housing market showed resilience in Q3 2025, with 87,603 homes sold across the top eight cities, up 1% YoY, driven by strong demand for premium homes, which now account for 52% of total sales, according to Knight Frank India. New launches dipped 2% YoY to 88,655 units. At the same time, prices rose sharply across major markets, the National Capital Region (NCR) up 19%, Bengaluru 15%, and Hyderabad 13%. Mumbai remained the largest market with 24,706 units sold (+2% YoY), contributing 28% of total sales, while Chennai recorded the fastest growth at 12% YoY with 4,617 units, marking its highest post-pandemic sales. Other cities such as NCR (12,955 units) and Bengaluru (14,538 units) maintained steady sales. The report attributes market resilience to easing inflation at 2.07% in August 2025 and a 1% repo rate cut by the RBI, which improved liquidity and supported financing innovations.
Premium housing continues to drive the sector’s upcycle, now in its fifth consecutive year. Homes priced above Rs. 1 crore (US$ 112,688.75) accounted for over half of all sales, with the Rs. 1-2 crore (US$ 112,688-225,377) segment rising 17% YoY and the Rs. 10-20 crore (US$ 1.13-2.25 million) luxury bracket surging 170% YoY, reflecting strong urban demand for larger, higher-quality properties. Despite a 4% YoY increase in unsold inventory to 5.06 lakh units, the market remains balanced, with Quarters to Sell (QTS) at 5.8, or less than 18 months of stock. Price growth remains robust in NCR, Bengaluru, and Hyderabad at 19%, 15%, and 13% YoY, respectively. Chairman & Managing Director, Knight Frank India, Mr. Shishir Baijal, noted that the market’s momentum underscores evolving buyer aspirations and the continued centrality of premium housing in driving growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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