India’s residential market has firmly tilted towards higher-value homes, with properties priced above ₹1 crore accounting for 50% of total housing sales in 2025, according to a new report released by Knight Frank India on Friday. 

Of 3,48,247 residential units sold across the top eight cities during the year, 1,75,091 homes were in the ₹1 crore-plus category, marking a 14% year-on-year growth. The premium segment’s share has risen sharply from 44% in 2024 to 50% in 2025, highlighting a clear shift in buyer preference. 

Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “Demand is increasingly being led by financially secure end-users upgrading to better-quality homes. Improved affordability metrics, rising incomes and long-term urban confidence have enabled buyers to move up the value curve, reshaping the composition of demand.”  

Affordable and mid-segment demand weakens 

In contrast, demand at the lower end of the market continued to weaken. Sales in the sub-₹50 lakh segment fell 17% year-on-year to 73,694 units, reducing its share to 21% of total transactions. The mid-segment, priced between ₹50 lakh and ₹1 crore, also declined 8% to 99,422 units, further underlining pressure in the affordable and lower mid-income categories. 

Supply, prices, and inventory remain stable 

The premium tilt has also been supported by steady price appreciation across major cities. Weighted average residential prices rose across leading markets in 2025, led by NCR with a 19% year-on-year increase, followed by Hyderabad (13%), Bengaluru (12%) and Mumbai (7%). 

On the supply side, total launches during the year stood at 3,62,184 units, a marginal 3% decline compared with 2024. While launches outpaced sales in some markets, overall inventory levels remain stable. Unsold inventory across the top eight cities stood at 5,09,815 units at the end of 2025. The quarters-to-sell ratio remained steady at 5.8 quarters, indicating balanced absorption and disciplined supply additions. 

Inventory data also shows strong traction in higher ticket sizes. The ₹2–5 crore segment recorded a 40% rise in unsold inventory, though it maintained a healthy quarters-to-sell ratio of 3.9. Ultra-luxury categories above ₹10 crore saw inventory growth, but volumes remain limited relative to the broader market. 

Baijal said, “Premium housing has emerged as the principal anchor of India’s residential market. Larger cities continue to demonstrate strong absorption in higher ticket-size segments, while lower priced segments remain under pressure.” 

With half of all sales now coming from homes above ₹1 crore, the residential market appears to be entering a consolidation phase, driven more by value than volume. Stable absorption levels and selective price growth are expected to shape market dynamics in 2026.