Housing Market Balances Demand Amidst Rising Prices in Major Indian Cities

Housing sales in eight major Indian cities dropped by 1% in 2025 due to climbing prices, despite factors like reduced home loan interest rates. The average price rise was up to 19%. Nonetheless, NRIs increasingly contributed to sales, and experts remain cautiously optimistic about the future market.

Housing sales in India experienced a slight decline of 1% in 2025, translating to over 3.48 lakh units sold across eight major cities, according to real estate consultant Knight Frank. This stagnation comes amidst an average price hike of up to 19%, putting pressure on the primary residential market.

During a virtual press conference, Shishir Baijal, CMD of Knight Frank India, highlighted that despite these price increases, the market benefitted from lower interest rates and rising NRI contributions, sustaining demand. The economic growth and reduced inflation played a crucial role in keeping the housing market afloat.

Looking ahead to 2026, stakeholders remain cautiously optimistic, with Baijal emphasizing the potential impact of affordable housing and continued interest rate cuts. Regional variations were noted with cities like Mumbai seeing a 1% rise in sales and others like Delhi-NCR experiencing declines, reflecting diverse market dynamics.

(With inputs from agencies.)