88,000+ Homes Sold in Q1 2025: Pune, Chennai Lead Residential Sales, Bengaluru Tops Price Growth

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India’s Housing Market Sees Over 88,000 Units Sold in Q1 2025: Pune and Chennai Lead Sales Surge While Bengaluru Tops Price Growth

India’s residential real estate sector began 2025 on a steady footing with 88,274 homes sold across the top eight cities in Q1 (January–March), according to Knight Frank India’s latest report. The numbers reflect a 2% year-on-year (YoY) increase in housing demand, led by Pune and Chennai, while Bengaluru emerged as the leader in price appreciation.

The report, India Real Estate: Residential and Office (January–March 2025), presents an optimistic outlook for the real estate sector amid rising premiumisation, evolving buyer aspirations, and continued infrastructure-led growth across metros.

op Cities by Sales Volume: Pune and Chennai Drive the Momentum

Among the eight key residential markets, Pune led with a remarkable 20% YoY increase in sales, reaching 14,231 units, while Chennai recorded 10% growth with 4,357 units sold in Q1 2025. These cities demonstrated strong end-user demand backed by improved infrastructure, affordable pricing, and growing interest in larger living spaces.

Here’s a city-wise breakdown of residential sales performance in Q1 2025:

- Mumbai: 24,930 units (↑5%)

- Pune: 14,231 units (↑20%)

- Chennai: 4,357 units (↑10%)

- Delhi-NCR: 14,248 units (↓8%)

- Bengaluru: 12,504 units (↓5%)

- Hyderabad: 9,459 units (↓1%)

- Kolkata: 3,858 units (↓2%)

- Ahmedabad: 4,687 units (flat)

Overall, five of the eight cities witnessed growth in primary home sales, indicating a market shift toward Tier 1 and Tier 2 markets like Pune and Chennai.

Luxury Segment Fuels Market: ₹1 Cr+ Homes Account for 46% of Sales

One of the most prominent trends in Q1 2025 has been the rise of premium housing. Homes priced above ₹1 crore accounted for 46% of total housing sales, compared to 40% in the same quarter last year—a 16% YoY growth.

In fact, ultra-luxury homes priced above ₹50 crore saw an astounding 483% YoY surge, rising from 29 units in Q1 2024 to 169 units in Q1 2025. These transactions reflect a continued shift in homebuyer preferences towards lifestyle, space, and exclusivity.

On the other hand, the sub-₹50 lakh segment saw a 9% YoY decline, reinforcing the idea that affordable housing is facing pricing and demand headwinds.

Bengaluru Tops Residential Price Growth at 16%

While Pune and Chennai led in volume, Bengaluru registered the highest YoY price growth at 16%, followed by Delhi-NCR at 12%. This surge is attributed to a rise in premium high-rise developments, improved infrastructure, and investor confidence in long-term value creation.

Across all cities, residential prices either remained steady or increased, indicating sustained demand and limited unsold inventory, particularly in well-located micro-markets.

City-Wise Price Trends: Premium Homes in Demand

- Bengaluru: 16% YoY price rise (highest)

- Delhi-NCR: 12% YoY rise

- Pune, Mumbai, Hyderabad: Moderate growth, driven by mid-to-premium segment

- Chennai, Ahmedabad, Kolkata: Price levels remained stable with marginal appreciation

As per Knight Frank, buyers are prioritizing well-designed projects with modern amenities, especially in suburban pockets offering value-for-money and connectivity advantages.

NCR Dominates Ultra-Luxury Home Sales

Interestingly, Delhi-NCR emerged as the top market for homes priced between ₹2 crore and ₹50 crore, particularly in Gurgaon, South Delhi, and Noida. The region led sales in four luxury categories:

- ₹2 crore–₹5 crore

- ₹5 crore–₹10 crore

- ₹10 crore–₹20 crore

- ₹50 crore+ segmen

These numbers show a consolidation of luxury demand in NCR, driven by NRIs, entrepreneurs, and C-suite professionals seeking lifestyle upgrades.

New Launches Rise for 10th Straight Quarter: Bengaluru Leads at 26%

Supply outpaced demand yet again in Q1 2025, with 96,309 new residential units launched—a 3% YoY increase. Bengaluru led with 26% YoY growth in launches, followed by Mumbai, Pune, and Hyderabad.

Notably, Mumbai and Bengaluru together accounted for 44% of all new launches, indicating sustained developer confidence in these markets despite high input costs and RERA compliance pressures.

Premium Units Drive Launches: ₹1–₹2 Cr Segment Most Active

New launches were most concentrated in the ₹1 crore–₹2 crore segment, aligning with the rising preference for larger homes with premium features.

Developers are adapting to shifting consumer preferences by offering:

- 3BHK+ configurations

- Amenities like clubhouses, EV charging stations, and co-working zones

- Location advantages near metro corridors and business districts

This is evident in markets like Mulund, Hinjewadi, Whitefield, and Medavakkam, where mid-to-high-end launches are gaining rapid traction.

Market Health Remains Stable: Quarters-to-Sell at 5.9

Despite the uptick in supply, market health indicators remain stable. The Quarters-to-Sell (QTS) ratio—indicating the time required to clear unsold inventory—stood at 5.9 quarters, reflecting balanced demand and supply dynamics.

This means developers are unlikely to face liquidity pressure in the short term, keeping price corrections at bay and fostering gradual, stable growth.

Expert View: Premiumisation and Buyer Confidence Drive Growth

According to Shishir Baijal, CMD of Knight Frank India:

> “The real estate market has remained strong despite concerns of overheating in certain segments. Premiumisation is not just a trend—it’s a reflection of the evolving aspirations of homebuyers who seek larger spaces and better lifestyles.”

Industry analysts believe that the rise in premium home sales, even as affordable housing faces slowdown, reflects:

- Increasing disposable income among urban buyers

- NRI interest in Indian luxury real estate

- More discerning homebuyer choices post-pandemic

Conclusion: Steady Start to 2025 with Momentum in Premium Segment

The Indian residential real estate market closed Q1 2025 with solid numbers, driven by strong demand in premium housing, steady price growth, and robust new launches. Pune and Chennai stole the spotlight in terms of volume growth, while Bengaluru led on pricing strength.

The rise of ₹1 crore+ transactions—especially in Mumbai, Delhi-NCR, and Bengaluru—indicates that Indian homebuyers are increasingly focused on value, size, and long-term investment potential. Meanwhile, the affordable segment continues to face challenges, requiring policy support and financial innovation.

As we head into the next quarter, developers and stakeholders can expect a positive trajectory, provided that interest rates remain stable and infrastructure development continues at its current pace.