India’s residential real estate market has shown mixed trends through 2024–25, reflecting changing buyer preferences, price pressures, and evolving economic conditions. Overall sales volumes have moderated, while prices — especially in premium segments — continued to rise, indicating a market in transition rather than contraction.

1. Annual Sales Trends

According to the latest industry reports, residential property sales across India’s major cities held at around 3.48 lakh units in 2025, slightly lower than the previous year by about 1 % but indicating a consolidating market rather than a sharp slowdown.

The second half of 2025 (H2 2025) delivered 178,406 unit sales, the strongest H2 performance since 2013, underlining lingering buyer confidence.

2. Premium Segment Dominates

A defining trend is the premiumisation of housing demand. Homes priced above ₹1 crore accounted for nearly half of all residential sales in 2025, marking a significant shift from previous years. This segment saw about 1.75 lakh units sold, recording double-digit growth year-on-year.

This shift reflects rising incomes, stronger demand for larger or lifestyle-oriented properties, and greater investor interest in higher-value homes.

3. Segmental Shifts: Affordable vs Premium

While luxury and premium homes gained popularity, the affordable segment (below ~₹50 lakh) experienced a sharp contraction — declining around 17 % annually.

This trend shows polarisation in buyer preferences, with developers focusing on mid-to-high-end projects, potentially tightening supply for first-time and middle-income buyers.

4. City-Level Performance

Residential sales performance varied across cities:

  • Mumbai maintained leadership with over 97,000 units sold and modest growth.
  • Chennai recorded a 12 % rise in annual sales, emerging as a strong outperformer.
  • Hyderabad, Bengaluru, and the National Capital Region (NCR) saw mixed results: some moderation in volumes, yet continued pricing strength.

Smaller and emerging markets like Lucknow are also attracting buyers due to infrastructure expansion and rising investor interest in peripheral residential hubs.

5. Sales Value and Market Dynamics

Even where volume growth was modest, the value of homes sold continued to rise. For example, the total residential sales value across top markets is projected to reach around ₹6.65 lakh crore in FY 2026, driven by price appreciation and expanding share of high-end sales.

This indicates that prices, especially in top cities, remain firm or rising, even as buyers take a more selective approach.

6. Inventory and Developer Activity

Data suggests a rise in unsold inventory across key markets, with a slight increase in stock due to new supply outpacing sales in some regions.

Developers are increasingly balancing new launches with absorption rates, focusing on quality and strategic segments rather than aggressive volume growth.

7. Market Challenges and Buyer Sentiment

Affordability remains a concern for many buyers. Rising prices and interest costs have made entry-level homeownership more challenging, leading many prospective buyers to delay or upgrade purchase plans rather than opt for smaller or older properties.

At the same time, some smaller regional markets and affordable segments show potential as buyers seek homes in emerging cities with better infrastructure and value propositions.

Conclusion

India’s residential property market is currently consolidating at elevated levels. While sales volumes have flattened or modestly declined in some periods, demand — especially in premium and lifestyle-oriented segments — remains resilient. Price growth continues to be supported by strong fundamentals, even as affordability constraints and inventory trends shape buyer choices.

The latest data suggests that 2025 was a year of recalibration, and 2026 may see continued stability with focused supply strategies, evolving buyer preferences, and diversified city-level performance shaping the residential landscape.