India’s eight key housing markets recorded a marginal one per cent year-on-year rise in home sales during the July–September quarter of 2025, according to real estate consultancy Knight Frank India. The firm noted that while the sector shows no immediate signs of a slowdown, residential demand may be nearing its peak after several years of strong growth.

Releasing its latest India Real Estate Market Update via webinar, Knight Frank reported that housing sales across the eight major cities reached 87,603 units in the third quarter of 2025, maintaining the strong post-pandemic demand trend.

The consultant attributed the sustained momentum to lower mortgage rates, robust economic growth, and tax incentives announced in recent budgets. It also noted that the positive impact of GST rate rationalisation implemented from 22 September is yet to be fully reflected in sales figures.

“India’s residential market in Q3 (July–September 2025) has demonstrated remarkable resilience and sustained momentum. The market is now in its fifth year of an upcycle. Consequently, the year-on-year growth rate is beginning to stabilise, suggesting we may be entering a prolonged plateau phase,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

He added that interest rate cuts of up to 100 basis points and liquidity support through simplification of both direct taxes and GST have collectively boosted homebuyer confidence.

However, sales for the first nine months of 2025 fell marginally by one per cent to 257,804 units across eight major cities compared with the same period last year. These cities include Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Chennai, Hyderabad, Bengaluru, Kolkata, and Ahmedabad.

“We are not observing any real slowdown in demand at this point,” said Gulam Zia, Senior Executive Director for Research, Advisory, Infrastructure, and Valuation at Knight Frank India. He added that the modest sales rise in the September quarter came despite market concerns over potential demand fatigue.

Zia, however, cautioned that the luxury and ultra-luxury housing segments have shown early signs of demand softening. He advised developers to re-focus on affordable and mid-income housing, where long-term growth potential remains stronger.

Knight Frank said that the upcoming festive quarter would provide a clearer picture of whether the housing market has reached its demand ceiling or can sustain its current momentum into 2026.