Whalesbook
Market Stabilizes, Premium Segment Dominates
India’s residential market has plateaued in 2025, with sales volumes remaining steady at approximately 348,204 units across the top eight markets. This figure represents a marginal 1% year-on-year decline following a strong performance in 2024. New property launches also contracted by 3% to 362,184 units, suggesting developers are proceeding with caution despite robust demand.
Premium Homes Surge, Affordability Shrinks
A significant shift occurred in the market's price segmentation. Homes priced above ₹1 crore now constitute 50% of total residential sales, marking a substantial 14% increase year-on-year. This concentration in higher-value properties contrasts sharply with the affordable segment. Sales in the sub-₹50 lakh category plummeted by 17% year-on-year, accounting for only 21% of transactions, a steep drop from 63% in 2022.
Price Appreciation and Market Resilience
Weighted average prices across key cities showed strong year-on-year growth, led by the National Capital Region (NCR) with a 19% surge. Hyderabad and Bengaluru also recorded double-digit price appreciation. This overall price increase is attributed to the launch of higher-value properties and rising construction and land costs.
Outlook for 2026
Despite the polarization, market health indicators remain firm. The quarters-to-sell ratio held steady at 5.8, signaling efficient inventory absorption. Experts suggest the market is transitioning to a more calibrated growth phase, supported by healthy household balance sheets and long-term urban fundamentals. While rapid volume expansion may be limited, stable absorption and disciplined supply additions are expected to define activity in 2026.