**
New Delhi – India’s housing market continues its remarkable growth trajectory, with the third quarter of 2025 posting robust gains in residential sales across the nation’s top eight cities. A comprehensive new report by leading property consultant Knight Frank confirms that India’s housing market grows in Q3 2025, but the defining trend is the overwhelming dominance of the luxury and premium segments.
According to Knight Frank India’s latest analysis, the July-September period saw a healthy 12% year-on-year increase in housing sales. However, the premium segment, consisting of homes priced above ₹1 crore, witnessed a staggering 28% surge in sales volume. This disproportionate growth highlights a fundamental shift in homebuyer preferences and an increase in purchasing power, cementing the trend where premium homes dominate the market.
What’s Driving the Demand for Premium Homes?
Analysts attribute this flight to quality to several converging factors. The post-pandemic era has permanently altered the homebuyer’s psyche, creating a sustained demand for larger living spaces, modern amenities, and integrated lifestyles that include home offices, private green areas, and enhanced security.
“We are witnessing a structural change in the market,” the Knight Frank report states. “This is no longer just about buying a property; it’s about investing in a superior quality of life. The rise of a new class of affluent millennials, strong performance in the equity markets, and stable home loan interest rates have collectively empowered buyers to upgrade their homes and aspirations.”
In stark contrast, the affordable housing category (homes priced below ₹50 lakh) registered a more modest 4% growth. This growing divergence underscores challenges at the lower end of the market, such as rising construction costs and slimmer developer margins, which have led to a noticeable slowdown in new launches within this category.
Top Cities Leading the Q3 2025 Real Estate Boom
The trend of premiumisation is most pronounced in India’s major metropolitan hubs, which are driving the bulk of the sales.
-
Mumbai Metropolitan Region (MMR): As the nation’s financial capital, Mumbai continues to set the pace for luxury real estate. High-value transactions for sea-facing apartments and sprawling homes in prime localities like Bandra, Juhu, and South Mumbai have established new benchmarks for the city.
-
Delhi-NCR: The National Capital Region, especially Gurugram, has experienced phenomenal demand for high-end condominiums and independent floors. Projects along Golf Course Extension Road and new developments in Noida are attracting significant investment from high-net-worth individuals (HNIs) and senior executives.
-
Bengaluru: India’s Silicon Valley remains a hotbed for premium real estate. The city’s dynamic tech ecosystem fuels a consistent demand for luxury villas and high-end apartments in sought-after areas like Koramangala, Indiranagar, and Whitefield, catering to its well-compensated tech workforce.
The Road Ahead for the Indian Property Market
Commenting on the findings, Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted, “The Q3 2025 numbers confirm that the Indian homebuyer has matured. There is a clear willingness to pay a premium for quality, location, and amenities. While the overall market sentiment is positive, developers and policymakers must also focus on revitalising the affordable housing segment to ensure balanced and sustainable growth for the entire sector.”
As the festive season approaches—a period traditionally associated with a spike in property sales—all eyes are on whether this premium-led momentum can be sustained. If it continues, 2025 could be cemented as a landmark year for the Indian real estate sector. For now, the message from the market is clear: luxury isn’t just an option; it’s the new standard.
**
