October 21, 2025: India’s residential real estate market maintained strong momentum in Q3 2025, with a total of 87,603 units sold across the top eight markets, according to Knight Frank India. Despite expectations of a price correction, sales recorded a 1% year-on-year growth, while year-to-date (YTD) figures were marginally lower by 1%. New launches saw a slight dip to 88,655 units, down 2% from the same period last year, yet the market continued to demonstrate healthy demand and inventory levels.
Mumbai led the sales charts, with 24,706 units sold (+2% YoY), accounting for 28% of total sales. Chennai showed the strongest growth at 12% YoY, with 4,617 units—the city’s highest post-pandemic sales. Bengaluru (14,538 units) and the National Capital Region (12,955 units) remained steady, while Pune recorded an 8% YoY decline. India’s residential market in Q3 2025 has demonstrated an impressive ability to sustain momentum, and the market is now in its fifth year of an upcycle. Consequently, the year-on-year growth rate is beginning to rationalise, and we may be entering a prolonged plateau phase,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
The quarter saw a decisive shift towards premium housing, with sales of homes priced above Rs 1 crore rising to 52% of total sales, up 15% YoY. “Premium housing has decisively taken centre stage, accounting for more than half of all sales this quarter. The strength of the Rs 1–2 crore segment, now the largest by volume, underscores a structural shift in buyer demand,” said Gulam Zia, Senior Executive Director (Valuation, Advisory, and Research). The Rs 1–2 crore segment accounted for 28% of total sales, while luxury units in the Rs 10–20 crore range recorded a 170% YoY growth.
The market remained healthy, with quarters to sell steady at 5.8 quarters (less than 18 months of inventory). Although unsold units rose 4% YoY to 506,400, the sales velocity over the past eight quarters indicates sustained demand, particularly in higher-ticket categories.
Source: ET Realty
