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What happened
Housing sales in 2025 fell 1% to 3,48,207 units across eight major Indian cities in the primary residential market, according to Knight Frank India. Weighted average housing prices rose by as much as 19% and demand stagnated. Knight Frank India said lower home-loan interest rates, strong economic growth, and lower inflation helped sustain demand during 2025.
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Key insights
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1
NRI share of housing sales increased: Shishir Baijal said NRI contribution to housing sales rose to 12–15% from single digits a decade ago.
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2
2026 outlook tied to rates and affordability: Shishir Baijal said he was cautiously optimistic for 2026 and said lower interest rates and improving affordability should promote residential sales.
Takeaways
Knight Frank India reported a small decline in 2025 housing sales across eight major cities alongside broad-based price increases and cited lower interest rates and macroeconomic conditions as factors supporting demand.