Housing Sales Rise by 0.7% Across 8 Cities to 1.71 Lakh Units in January-June: Report

After four consecutive years of rapid growth following the COVID-19 pandemic, the Indian housing market is officially entering a phase of stabilization, according to the latest report by Knight Frank India. Between January and June of this year, housing sales across the country’s eight major cities recorded a marginal year-on-year growth of 0.7%, reaching a total of 1,71,471 units. While key metropolitan markets including Mumbai, Bengaluru, Hyderabad, Pune, Chennai, Ahmedabad, and Kolkata witnessed positive sales momentum, the Delhi-NCR region registered a 7% decline in overall sales. Despite the modest sales growth, developers remain optimistic about future demand, reflected in a 4% increase in new housing project launches, which stood at 1,87,350 units during the same period.

The Luxury Boom and the Affordable Housing Slump
The most striking trend emerging from the report is the massive shift in buyer preferences toward high-end real estate. Premium and luxury homes priced above ₹1 crore are currently dominating the market, accounting for a staggering 54% share of all residential sales. While the luxury segment is operating in top gear, the market for low and middle-income housing has been highly disappointing. Primarily due to a severe lack of new project supply, sales of budget homes priced under ₹50 lakh plummeted by a massive 15% compared to the previous year. Similarly, the mid-segment housing bracket, comprising homes priced between ₹50 lakh and ₹1 crore, also experienced a 5% decline in sales volume.

Market Fundamentals Remain Strong
Analyzing these shifting market dynamics, Knight Frank India Chairman and Managing Director Shishir Baijal stated that even though the headline growth rate appears to have moderated, the underlying market fundamentals remain exceptionally strong. He explained that the surging demand for luxury real estate is directly fueled by rising annual household incomes and a fundamental shift in consumer aspirations, with buyers increasingly seeking larger living spaces equipped with comprehensive, modern amenities. Furthermore, he highlighted that ongoing urban expansion and rapid infrastructure development across major cities are playing a crucial role in maintaining overall market stability.