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India’s residential real estate market remained resilient in the first quarter of 2025, witnessing a 2% year-on-year (YoY) increase in housing sales across eight major cities. According to Knight Frank India's latest report, a total of 88,274 housing units were sold between January and March 2025, reflecting continued strong demand despite market fluctuations.
Steady Growth in Housing Sales in Q1 2025
The Knight Frank report titled "India Real Estate: Residential and Office (January-March 2025)" highlights stability in the primary residential sales market. The slight increase in overall sales numbers is in contrast to recent reports from PropEquity and Anarock, which suggested a 23-28% decline in housing demand.
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City-Wise Housing Sales Performance
The real estate performance in Q1 2025 varied across the top eight cities, with some registering growth and others witnessing a decline:
| City | Housing Sales (Jan-Mar 2025) | YoY Change |
| Mumbai | 24,930 units | ↑ 5% |
| Pune | 14,231 units | ↑ 20% |
| Chennai | 4,357 units | ↑ 10% |
| Delhi-NCR | 14,248 units | ↓ 8% |
| Bengaluru | 12,504 units | ↓ 5% |
| Hyderabad | 9,459 units | ↓ 1% |
| Kolkata | 3,858 units | ↓ 2% |
| Ahmedabad | 4,687 units | No Change |
Premium Housing Segment on the Rise
A notable trend in Q1 2025 is the rise of premium housing (homes priced above ₹1 crore), which accounted for 46% of total sales, marking a 16% YoY growth. This surge highlights homebuyers’ preference for larger, high-end living spaces.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated:
"The real estate market has remained strong despite concerns of overheating in certain segments. The premiumization trend reflects homebuyers' aspirations for better lifestyles and larger homes."
Factors Driving Housing Sales Growth
Several factors contributed to the increase in housing sales in Q1 2025:
- Urban Demand Surge: Growing urbanization and increased job opportunities in metro cities.
- Stable Home Loan Rates: Competitive interest rates on home loans made purchasing more attractive.
- Luxury Home Demand: Premium housing segment continues to grow, with more buyers seeking high-end residences.
- Government Policies: Housing incentives and regulatory reforms have boosted homebuyer confidence.
Challenges in the Housing Market
Despite the overall positive trend, some cities witnessed a decline in sales, primarily due to:
- Higher Property Prices: Rising real estate prices in cities like Delhi-NCR and Bengaluru impacted affordability.
- Market Saturation: In certain areas, high inventory levels led to slower demand.
- Economic Uncertainty: Fluctuations in income and employment rates affected buying decisions.
Outlook for Housing Sales in 2025
As we move further into 2025, the housing market is expected to remain stable, driven by:
- Continued demand in premium housing
- Sustained economic growth
- Stable interest rates
- Improved infrastructure developments
However, cities with declining sales trends will need strategic interventions, such as affordable housing projects and policy support, to boost demand.
Final Thought
The 2% rise in housing sales in Q1 2025 demonstrates the resilience of India's real estate sector. While challenges persist, the strong performance of premium housing and growth in key cities like Pune, Chennai, and Mumbai indicate a positive outlook for the residential market. Homebuyers continue to invest in larger, premium homes, making Q1 2025 a stable quarter for the Indian housing sector.
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Ans 1. India’s residential housing market saw a 2% year-on-year (YoY) increase in sales across the top 8 cities in Q1 2025, with 88,274 units sold from January to March 2025.
Ans 2. 1. Pune: 20% YoY growth2. Mumbai: 5% YoY growth3. Chennai: 10% YoY growth
Ans 3. 1. Delhi-NCR: ↓ 8%2. Bengaluru: ↓ 5%3. Hyderabad: ↓ 1%3. Kolkata: ↓ 2%4. Ahmedabad: No change
Ans 4. While Knight Frank India reported a 2% increase, other sources like PropEquity and Anarock suggested a 23–28% decline—indicating market performance varies based on data sources and segments analyzed.
Ans 5. Now is a good time to explore housing options, especially in the premium segment, with stable loan rates and strong project launches in key metro cities.