Hydabad/Mumbai, Feb 3 (TNT) : India’s residential real estate market continues to demonstrate strong business fundamentals and global competitiveness, significantly outperforming most international peers, according to Knight Frank.
As per Knight Frank’s Global House Price Index Q3 2025 and India Real Estate: Office and Residential Market – H2 2025 report, India ranked 10th globally with 9.6 per cent year-on-year growth in residential property prices, emerging as the only Asia-Pacific market in the global top-10.
This is substantially higher than the global average price growth of 2.4 percent, underlining the structural strength of India’s housing demand.
India’s outperformance is attributed to firm end-user demand, improving affordability due to cumulative interest-rate cuts, stable inflation, and rising household incomes, the report revealed.
Residential sales across the top eight Indian cities remained robust at over 348,000 units in 2025, with H2 2025 marking the highest half-yearly sales volume since 2013, a key indicator of sustained market depth, it said.
Despite an increase in unsold inventory, largely driven by higher-value project launches, overall market health remained balanced. The quarters-to-sell ratio held steady at 5.8, reflecting disciplined supply and steady absorption, the report stated.
Price appreciation was broad-based across major urban markets, led by the National Capital Region (NCR) with a 19 percent YoY increase, followed by Hyderabad (13%), Bengaluru (12%), and Mumbai (7%).
The momentum was strongest in mid-premium and premium housing, signalling a decisive shift in buyer preferences, it said.
Homes priced above ₹1 crore accounted for nearly 50 per cent of total residential sales, highlighting a structural transformation in India’s housing market toward larger, higher-quality, and better-located homes.
Developers responded by moderating new launches, prioritising execution, and offering selective financing incentives instead of price corrections—supporting long-term market stability, it said.
Commenting on the outlook, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said India’s housing market is entering a more mature and resilient cycle, driven by end-user demand rather than speculation.
Looking ahead to 2026, Knight Frank expects stable absorption, selective price appreciation, and disciplined supply growth, positioning India’s residential sector to sustain its global outperformance even as international markets recover unevenly.
With global monetary conditions turning accommodative and India’s economic fundamentals remaining strong, the country’s housing market continues to stand out as a key growth engine for real estate investors and developers alike, Baijal added.
TNT KS
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