January 8, 2026: India’s residential housing market saw mixed trends in 2025, with home prices continuing to rise even as overall sales remained largely stagnant, according to Knight Frank India’s latest data. Across eight major cities, housing sales fell slightly by 1% to 3,48,207 units, while average property prices increased by up to 19%. The report covers the primary residential market only.
During a virtual press conference, Shishir Baijal, CMD of Knight Frank India, highlighted that factors such as declining home loan interest rates, robust economic growth, and lower inflation helped sustain demand despite fears of a market correction. “The contribution of NRIs in housing sales has risen to 12-15% from single digits a decade ago,” he noted, emphasizing the growing role of overseas buyers in India’s urban housing markets.
Baijal added, “We are cautiously optimistic for the residential market in 2026. I think the lowering of interest rates and improving affordability should hopefully continue to promote residential sales.”
City-wise, Mumbai recorded a modest 1% rise in residential sales to 97,188 units, while average property prices increased 7% to Rs 8,856 per sq ft. Bengaluru sales remained flat at 55,373 units, with prices up 12% to Rs 7,388 per sq ft. Pune experienced a 3 per cent decline in sales to 50,881 units, but prices rose 5% to Rs 5,016 per sq ft.
Delhi-NCR saw a sharper 9% drop in sales to 52,452 units, though prices surged 19 per cent to Rs 6,028 per sq ft. Hyderabad’s housing market grew 4% in sales to 38,403 units, with prices up 13 per cent to Rs 6,721 per sq ft. Ahmedabad recorded a 2 per cent increase in sales to 18,752 units, while prices rose 3% to Rs 3,197 per sq ft. Chennai and Kolkata saw contrasting trends, with Chennai posting a 12% rise in sales to 18,262 units and a 7% price increase to Rs 5,135 per sq ft, whereas Kolkata’s sales fell 3% to 16,896 units, and prices climbed 6% to Rs 4,037 per sq ft.
The data indicates that while demand remains cautious, rising affordability and interest rate cuts could help stabilise sales and sustain price growth in 2026.
Source: ABP Live English
