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As affordable housing segment continues to see dip in demand, significant surge in premium housing sales establishes the structural shift in housing demand.
In its recent India reportKnight Frank, has reinforced the structural shift in India’s housing market. Homes priced above INR 1 cr now account for 50% of total residential sales across the top eight cities in 2025, underscoring the growing dominance of premium housing in overall market activity.
India ticket size split comparison of sales
| Year | <50 lacs | 50 lacs – 1 cr | >1 cr |
| 2024 | 25% | 31% | 44% |
| 2025 | 21% | 29% | 50% |
Source: Knight Frank Research
In contrast, the sub-INR 50 lakh segment recorded a sharp 17% YoY decline, with volumes falling to 73,694 units in 2025. This category now accounts for just 21% of overall sales, compared with nearly 37% in 2022, highlighting the pace of structural change within the market. The mid-segment (INR 50 lakh to INR 1 crore) also saw moderation, declining 8% YoY to 99,422 units, accentuating the slack in demand in the price segments under INR crore.
Launches
| City | H2 2025 (YoY change) | 2025 (YoY change) | |||
| Mumbai | 41,663 (-16%) | 87,114 (-10%) | |||
| Bengaluru | 35,262 (16%) | 68,760 (23%) | |||
| Pune | 29,559 (-6%) | 56,118 (-6%) | |||
| NCR | 25,536 (-15%) | 50,769 (-16%) | |||
| Ahmedabad | 11,307 (-4%) | 22,041 (0%) | |||
| Kolkata | 8,098 (38%) | 15,780 (-6%) | |||
| Hyderabad | 19,775 (-9%) | 40,737 (-7%) | |||
| Chennai | 11,244 (31%) | 20,865 (20%) | |||
| Total | 182,444 (-4%) | 362,184 (-3%) |
Source: Knight Frank Research
According to Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India,the 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.”
Ticket-size Segment Health
| Ticket-size segment | Unsold Inventory (housing units) (YoY change) | Quarters-to-sell (QTS) | |||
| 0 – 50 lacs | 176,903 (-7%) | 8.7 | |||
| 50 lacs – 1 cr | 136,569 (-3%) | 5.3 | |||
| 1 – 2 cr | 129,761 (14%) | 5.5 | |||
| 2 – 5 cr | 52,322 (40%) | 3.9 | |||
| 5 – 10 cr | 9,603 (-4%) | 2.9 | |||
| 10 – 20 cr | 2,929 (27%) | 5.2 | |||
| 20 – 50 cr | 1,239 (27%) | 15.8 | |||
| >50 cr | 450 (48%) | 9.5 |
Source: Knight Frank Research
The premium tilt has also been supported by sustained price growth across major cities. Weighted average residential prices rose across all leading markets in 2025, led by NCR at 19% YoY, followed by Hyderabad (13%), Bengaluru (12%) and Mumbai (7%). A higher proportion of launches in the premium categories has further strengthened this shift.
Despite launches outpacing sales in several markets, overall market health remains stable. Unsold inventory across the top eight cities stood at 509,815 units at the end of 2025, with the quarters-to-sell (QTS) ratio steady at 5.8 quarters—indicating efficient absorption and disciplined supply additions. Larger cities continue to demonstrate strong absorption in higher ticket-size segments, while lower priced segments remain under pressure.
The current demand mix reflects a more mature, end-user driven market supported by stable inventory levels and calibrated supply.With premium housing now accounting for half of all residential transactions, the market appears to be entering a phase of consolidation sustained by higher-value demand. While rapid volume expansion may moderate, stable absorption and selective price appreciation are likely to define residential market dynamics in 2026.
