Real Estate Trends: Mixed Signals in Major Cities as Housing Sales Dip Slightly

Housing sales declined by 1% across eight major Indian cities, totaling 3.48 lakh units, despite a price increase of up to 19%. Knight Frank cites economic factors like low interest rates, strong growth, and low inflation for sustaining demand. NRI contributions to sales increased notably.

Housing sales across eight major Indian cities experienced a 1% decline last year, with over 3.48 lakh units sold, amidst average price hikes of up to 19% according to consultancy Knight Frank.

During a virtual press conference, Knight Frank India highlighted that reduced home loan interest rates, strong economic growth, and low inflation were pivotal in sustaining housing demand in 2025 despite concerns of a market correction. These factors, alongside rising contributions from NRIs, who now account for 12-15% of sales, have mitigated the impact of rising prices.

City-wise, Mumbai observed a 1% rise in sales to 97,188 units, while prices increased 7%. Bengaluru sales plateaued at 55,373 units with a 12% price increase. Sales in Delhi-NCR dropped 9% to 52,452 units, yet prices appreciated by 19%. Pune, Kolkata, and other cities showed varied sales performances and price changes.

(With inputs from agencies.)