The Indian residential real estate market displayed a tale of resilience and rising costs in the year 2025, according to a recent report. While sales volume saw a marginal contraction, the average price of homes witnessed a significant upward climb, highlighting a complex market dynamic.
A Market of Contrasts: Sales Dip Versus Price Surge
Data from the leading global property consultant Knight Frank India reveals a nuanced picture for the country's top eight residential markets. Housing sales registered a slight decline of 1% over the course of the last year. This minor dip occurred against a backdrop of consistent economic activity and sustained buyer interest in key urban centers.
In a striking contrast to the sales trend, the financial commitment for homebuyers increased substantially. The report indicates that the weighted average price of residential properties grew by up to 19% across these major cities. This double-digit appreciation underscores the strong underlying value and demand for quality housing, even as transaction numbers softened slightly.
Leadership Insight on Sustained Momentum
Commenting on these divergent trends, Shishir Baijal, Chairman and Managing Director of Knight Frank India, provided crucial context. He stated that the sales momentum in the residential sector continued robustly throughout the year. This persistence came despite the notable rise in weighted average prices that could have potentially dampened purchaser activity.
Baijal's observation suggests that the Indian housing market is being driven by fundamental, long-term demand from end-users and investors alike. The willingness to absorb higher prices points towards confidence in the asset class and a perception of real estate as a stable store of value amidst broader economic conditions.
Implications for Buyers and the Market Outlook
The current market scenario, characterized by stable sales and rising prices, presents specific implications for different stakeholders. For potential homebuyers, the environment signals the importance of strategic decision-making. While choices remain available, the cost of acquisition is on a clear upward trajectory, which could influence budgeting and location preferences.
For the industry and developers, the data validates the strength of demand in prime urban markets. The ability to achieve price growth with only a minimal impact on sales volume is a positive indicator of market health. It suggests that well-located projects with good amenities continue to command premium valuations.
The report, dated 07 January 2026, encapsulates the performance of the previous calendar year. The top eight cities, which typically include major hubs like Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad, form the core of this analysis. The sustained activity in these markets is often seen as a bellwether for the national real estate sentiment.
In conclusion, the Indian residential real estate landscape in 2025 demonstrated its maturity. The market absorbed price increases without a major fall in sales, pointing to a balanced and demand-driven phase. The insights from Knight Frank India, led by Shishir Baijal, confirm that momentum remains a key feature, setting the stage for the trends to watch in 2026.
