India 2025 Housing Market Report
Analysis based on 7 articles · First reported Jan 07, 2026 · Last updated Jan 07, 2026
The report by Knight Frank indicates a mixed but generally stable housing market in India, with sales slightly down but prices appreciating significantly. This suggests continued investor interest and potential for growth in the real estate sector, despite some stagnation in demand. The outlook for 2026 is cautiously optimistic, driven by anticipated lower interest rates and improved affordability, which could further stimulate residential sales.
Knight Frank released a report detailing the performance of the housing market in eight major cities across India for the 2025 calendar year. The report indicates a 1% decline in overall housing sales, totaling over 3.48 lakh units, while average housing prices increased by up to 19%. Key factors sustaining demand included lower interest rates on home loans, strong economic growth, and reduced inflation. Shishir Baijal, CMD of Knight Frank India, noted the rising contribution of NRIs to housing sales (12-15%) and expressed cautious optimism for the 2026 residential market, anticipating continued sales growth due to lower interest rates and improved affordability. City-specific data showed varied performance: India — Mumbai sales rose 1% with a 7% price increase; India — Bengaluru sales were flat with a 12% price increase; India — Pune sales dipped 3% but prices rose 5%; India — Delhi-NCR sales fell 9% but prices surged 19%; India — Hyderabad sales grew 4% with a 13% price increase; India — Ahmedabad sales rose 2% with a 3% price increase; India — Chennai sales grew 12% with a 7% price increase; and India — Kolkata sales declined 3% with a 6% price increase.
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