Divergent Trends in India's Real Estate: Housing Sales Dip, Office Lease Soars

Knight Frank reported a 2% decline in Indian housing sales during January-June 2025, while office space leasing surged 41%. Despite a slowdown in residential sales, notably in major cities like Delhi-NCR, the commercial real estate sector thrived, particularly in cities like Bengaluru and Delhi-NCR.

In the latest real estate report by Knight Frank, India's top property markets experienced divergent trends in the initial half of 2025, with a 2% annual decline in housing sales while office space leasing surged by 41% compared to the previous year.

The office leasing sector, buoyed by robust demand from both Indian and foreign companies, witnessed considerable growth in cities like Bengaluru, which saw its gross leasing more than double to 18.2 million square feet.

Meanwhile, the residential market faced challenges in major cities like Delhi-NCR and Mumbai, indicating a nuanced shift towards premium and luxury segments according to Shishir Baijal, Knight Frank India's Chairman and Managing Director.

(With inputs from agencies.)