India's eight major housing markets saw a nominal one per cent increase in sales during the July-September quarter, Knight Frank said on Tuesday, ruling out any signs of slowdown so far but contending that demand for residential properties might be reaching its peak.
Real estate consultant Knight Frank India noted that the sales data for the current festive quarter would present a clear picture.
Releasing its report on the Indian real estate market through a webinar, Knight Frank mentioned that housing sales across eight major cities rose 1 per cent annually to 87,603 units during the third quarter of the current 2025 calendar year, sustaining the momentum of high demand being seen post the COVID pandemic.
Fall in mortgage rates, high economic growth and tax sops in the budget have helped in maintaining the sales momentum, the consultant said, adding that the impact of the increase in consumer confidence because of GST rates rationalisation from September 22 was yet to be seen in the housing demand.
"India's residential market in Q3 (July-September 2025) has demonstrated an impressive ability to sustain momentum, and the market is now in its fifth year of an upcycle. Consequently, the Y-o-Y (year-on-year) growth rate is beginning to rationalise, and we may be entering a prolonged plateau phase," Knight Frank India CMD Shishir Baijal said.
The rate cut of up to 100 basis points, and liquidity support through the simplification of both direct taxes and GST have collectively strengthened end-user confidence, he added.
Nevertheless, during the first nine months of this year, the sales declined one per cent annually to 2,57,804 units across eight major cities compared with the same period last year. These eight cities are Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Chennai, Hyderabad, Bengaluru, Kolkata and Ahmedabad.
"We are not seeing any signs of demand slowdown as of yet," said Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure, and Valuation, Knight Frank India.
He said the sales have risen marginally during the latest September quarter, despite concerns in markets about the possibility of a demand slowdown.
Zia, however, pointed out that there have been some "cracks" in demand for luxury and ultra-luxury homes.
He advised developers to consider the development of affordable homes, as there is a limitation of growth potential in the luxury housing segment.
