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India's top eight property markets witnessed a marginal 2 per cent decline in residential sales during January to June 2025, totalling 1,70,201 units, as per data released by Knight Frank. In contrast, office space leasing registered a 41 per cent surge, reaching 48.9 million square feet in the same period. The consultant highlighted that 49 per cent of residential sales were for properties priced above INR 1 crore, with prices rising by up to 14 per cent. Bengaluru, Delhi-NCR, Pune, and Kolkata led the commercial leasing recovery, with Bengaluru alone more than doubling its leased area.
India's top eight real estate markets recorded a 2 per cent annual decline in residential housing sales between January and June 2025, according to data released by Knight Frank during a webinar. Total residential sales stood at 1,70,201 units in this period. However, the commercial office segment displayed considerable momentum, with office space leasing surging 41 per cent to 48.9 million square feet. Advertisement
Knight Frank expects total office leasing activity to surpass 80-90 million square feet by year-end, building on the strong momentum of 71.9 million square feet achieved throughout 2024.
Despite the dip in residential volumes, weighted average housing prices rose between 2 per cent and 14 per cent across key cities. A notable shift was observed in buyer preference, with 49 per cent of homes sold priced above INR 1 crore. The remaining 51 per cent were priced up to INR 1 crore, indicating a stable demand in both premium and affordable segments.
Among individual cities, housing sales in Mumbai and Ahmedabad remained unchanged at 47,035 units and 9,370 units, respectively. Hyderabad witnessed a modest 3 per cent uptick, recording 19,048 units sold. Chennai reported a 12 per cent increase with 8,935 units sold. In contrast, Delhi-NCR experienced an 8 per cent decline to 26,795 units, Bengaluru's sales slipped by 3 per cent to 26,599 units, and Pune's dropped 1 per cent to 24,329 units. Kolkata saw the sharpest fall, with sales dropping 11 per cent to 8,090 units.
Knight Frank's Chairman and Managing Director, Shishir Baijal, observed that the first half of 2025 highlighted a distinct shift towards premium and luxury housing, while the budget segment continued to show signs of moderation.
The office market performed strongly across several metros. Bengaluru led the growth, with gross leasing more than doubling to 18.2 million square feet. Delhi-NCR followed with a 27.5 per cent rise to 7.2 million square feet. Hyderabad's leasing activity climbed 16 per cent to 5.9 million square feet, and Chennai posted a 68 per cent increase to 5.1 million square feet. Pune registered a 17 per cent growth with 5.1 million square feet leased, while Kolkata's absorption jumped 60 per cent to 1.1 million square feet.
Mumbai saw a 5 per cent decline in office leasing to 5.5 million square feet, while Ahmedabad recorded the steepest fall of 51 per cent, with leasing reducing to 0.8 million square feet.
Baijal attributed the record performance in the commercial segment to India's robust economic fundamentals and its emerging role as a global business destination. He stated that sustained demand for quality office infrastructure reflected occupiers' confidence, with expectations of continued growth supported by India's strategic positioning and innovation-led development.
The growing preference for high-end homes and consistent demand in office leasing reaffirmed the resilience of urban markets. Knight Frank's projections suggest that the commercial segment may witness a record-breaking year, underscoring the continued confidence of corporate occupiers and investors. The data also points to evolving buyer behaviour in the residential space, where aspirational and premium housing continues to command attention despite macroeconomic shifts.
Source - PTI
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