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India's Housing Market Booms: Delhi-NCR Leads Price Growth

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  Published in House and Home on Friday, January 9th 2026 at 9:05 GMT by Zee Business

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New Delhi, January 9th, 2026 - A new report from Knight Frank India reveals a dynamic Indian residential real estate market in 2025, characterized by significant price appreciation in certain regions and continued dominance by established hubs like Mumbai. While Mumbai maintains its position as the nation's largest housing market, it's the Delhi-NCR region that experienced the most substantial growth in property values last year.

The India Real Estate Update - 2025 report highlights a nationwide trend of resilience and expansion, fueled by a robust economy, positive consumer outlook, and sustained demand for housing. However, the performance wasn't uniform across major cities. Delhi-NCR outpaced all others with a remarkable 12.8% year-on-year increase in residential property prices. This surge was followed by Pune at 9.6% and Bengaluru at 8.3%. Mumbai, while still commanding the largest share of sales volume and new project launches, registered a comparatively modest price growth of 5.9%.

"The Indian residential market has demonstrated remarkable resilience and growth in 2025," stated Shishir Baijal, Chairman and Managing Director of Knight Frank India. "While Mumbai remains the dominant force in terms of overall sales, Delhi-NCR is clearly leading the charge in price appreciation."

What's Driving the Delhi-NCR Boom?

Several factors are contributing to the exceptional growth in Delhi-NCR. Improved infrastructure, including the expansion of the metro network and enhanced road connectivity, have made previously peripheral areas more accessible and desirable. Furthermore, a growing number of multinational corporations establishing or expanding operations in the region are attracting a skilled workforce, increasing housing demand. The availability of relatively affordable land compared to Mumbai has also allowed for more extensive development of residential projects. This combination of factors has created a fertile ground for property value appreciation.

The Shift Towards Spacious Living and Premium Amenities

The report doesn't just focus on price increases. It also identifies a notable shift in buyer preferences. The COVID-19 pandemic significantly altered perceptions of home and lifestyle. Buyers are now demonstrably prioritizing larger living spaces and premium amenities. This trend isn't about luxury for the sake of it; it's about creating homes that better accommodate remote work, family needs, and overall well-being. Demand for homes with dedicated home offices, larger balconies, and access to recreational facilities like gyms, swimming pools, and green spaces is on the rise.

Developers are responding to this changing demand by increasingly focusing on launching larger-sized apartments and incorporating value-added features into their projects. The focus is shifting from simply providing a roof over one's head to crafting holistic living experiences.

Mumbai's Continued Dominance

Despite slower price growth, Mumbai's position as the largest housing market remains unchallenged. This is due to a number of factors, including its status as India's financial capital, a large and diverse population, and a limited supply of land, which consistently drives demand. While prices may not be escalating as quickly as in Delhi-NCR, Mumbai continues to attract substantial investment and remains a preferred destination for both homebuyers and developers.

Looking Ahead to 2026

Experts predict that the trends observed in 2025 will likely continue into 2026. Baijal anticipates the preference for quality of life and homes that cater to evolving needs will persist. "We expect this trend to continue in 2026, as buyers prioritize quality of life and seek homes that cater to their evolving needs," he stated. This suggests further emphasis on larger homes, modern amenities, and sustainable living.

However, potential headwinds, such as interest rate fluctuations and global economic uncertainties, could impact the pace of growth. Monitoring these factors will be crucial for stakeholders in the Indian real estate market. The competition between cities like Delhi-NCR and Mumbai will also be an interesting dynamic to watch, as both regions adapt to the evolving needs of homebuyers and strive to capture a larger share of the market.