- Residential prices witnessed 19% Year-on-Year (YoY) growth, the highest recorded across major Indian cities
- Office rental maintained positive traction with a healthy 9% YoY rise
- Residential demand driven by premium and luxury segments, while office demand is supported by India facing businesses and flex workspace operators.
Knight Frank India, in its latest report, Q3 2025 – Residential and Office (July-September 2025), report indicates a robust and maturing market in the Delhi NCR. While the residential segment dominated headlines by registering the highest annual price appreciation in India, the commercial office market continued its resilient performance, driven by strong occupier fundamentals.
NCR Residential Market: Price Appreciation Peaks in Q3
The NCR residential market was the star performer in terms of price growth during the third quarter of 2025. Driven by stable economic conditions, reduced inventory risk, and strong end-user demand, average residential prices in the region surged by 19% YoY, marking the highest increase among the top Indian cities. This robust growth reflects the sustained high demand for premium and luxury properties, particularly in established micro-markets across Gurugram and Noida.
Average price change across markets during Q3 2025
|
Market |
YoY Change |
QoQ Change |
|
NCR |
19% |
3% |
|
Bengaluru |
15% |
4% |
|
Hyderabad |
13% |
5% |
|
Chennai |
9% |
2% |
|
Kolkata |
8% |
1% |
|
Mumbai |
7% |
1% |
|
Pune |
5% |
1% |
|
Ahmedabad |
2% |
0% |
Source: Knight Frank Research
The trend of premiumisation continues to reshape the market, with home buyers demonstrating a strong preference for larger homes, better amenities, and ready-to-move-in or near-completion inventory. While overall sales volume saw stabilisation after previous high-growth phases, the underlying sales value of transactions continued to climb, reinforcing buyer confidence and developer focus on high-ticket launches.
Sales (in House Units)
|
Market |
Q4 2024 |
Q1 2025 |
Q2 2025 |
Q3 2025 |
Q3 2025 YoY Growth % |
YTD Change % |
|
Mumbai |
24,706 |
24,930 |
22,105 |
24,706 |
2% |
0% |
|
Bengaluru |
13,354 |
12,504 |
14,095 |
14,538 |
0% |
-2% |
|
NCR |
15,680 |
14,248 |
12,547 |
12,955 |
0% |
-5% |
|
Pune |
14,621 |
14,231 |
10,098 |
12,118 |
-8% |
-3% |
|
Hyderabad |
9,287 |
9,459 |
9,589 |
9,601 |
5% |
3% |
|
Ahmedabad |
4,507 |
4,687 |
4,683 |
4,694 |
3% |
1% |
|
Chennai |
4,158 |
4,357 |
4,578 |
4,617 |
12% |
12% |
|
Kolkata |
3,950 |
3,858 |
4,232 |
4,374 |
2% |
-7% |
|
Total |
90,263 |
88,274 |
81,927 |
87,603 |
1% |
-1% |
Source: Knight Frank Research
Mudassir Zaidi, Executive Director – North, Knight Frank India, commented on the market performance, “The NCR real estate story in Q3 2025 is clearly one of two robust but distinct markets. On the residential front, the staggering 19% YoY price appreciation is a clear indicator that the region’s luxury and premium segments are firing on all cylinders. This growth is healthy, not speculative, as it is backed by genuine end-user confidence and a diminishing supply of quality inventory. The high-value segment continues to lead the way, affirming NCR’s status as a high-growth residential investment destination in India.”
NCR Office Market: Rentals and Leasing Stabilise
The NCR office market showcased resilient stability in Q3 2025. While overall pan-India leasing volumes saw a marginal softening compared to the exceptional performance in Q3 2024, NCR continued to attract steady demand. Gross leasing was primarily fueled by sustained space take-up from Global Capability Centres (GCCs) and domestic corporate expansion plans across BFSI and consulting sectors.
The sustained occupier interest, coupled with a focus on high-quality, Grade A supply, kept upward pressure on rentals. NCR recorded a positive 9% YoY growth in average office rentals during the quarter. Micro-markets in Gurugram, such as Cyber City and Golf Course Road, along with prime locations in Noida, remained the key drivers of activity, benefiting from limited new supply and high occupancy levels in established assets.
Average rent growth across markets during Q3 2025
|
Market |
YoY Change |
QoQ Change |
|
Kolkata |
14% |
5% |
|
Mumbai |
11% |
0% |
|
NCR |
9% |
2% |
|
Hyderabad |
9% |
1% |
|
Bengaluru |
6% |
1% |
|
Ahmedabad |
5% |
0% |
|
Pune |
4% |
1% |
|
Chennai |
1% |
1% |
Source: Knight Frank Research
The city also saw 1.5 mn sq ft of new office space delivered during the quarter, marking a significant 42% YoY growth in completions. This substantial delivery comes on the back of consistent development activity and demand.
New completions in mn sq ft
|
Market |
Q4 2024 |
Q1 2025 |
Q2 2025 |
Q3 2025 |
Q3 2025 YoY Growth % |
YTD Change % |
|
Bengaluru |
2.3 |
1.1 |
1 |
5.9 |
140% |
-21% |
|
Hyderabad |
6.4 |
0 0 |
1.4 |
1.6 |
-61% |
-67% |
|
Mumbai |
0.8 |
0.5 |
1.7 |
1.6 |
94% |
-25% |
|
NCR |
1.6 |
0.2 |
3.9 |
1.5 |
42% |
40% |
|
Pune |
0.6 |
3.5 |
5.3 |
1.1 |
-60% |
92% |
|
Chennai |
1.2 |
0.2 |
0.8 |
0.4 |
1709% |
79% |
|
Ahmedabad |
0.8 |
0 |
0.5 |
0.3 |
4% |
-60% |
|
Kolkata |
0 |
0 |
0 |
0 |
– |
-100% |
|
All cities |
13.7 |
5.5 |
14.6 |
12.4 |
8% |
-11% |
Source: Knight Frank Research
Mr Zaidi added, “In the commercial sector, the NCR office market has demonstrated remarkable resilience, moving from high-volume growth to sustained, stable expansion. The healthy 6% YoY rental growth is a testament to the continued preference for high-quality Grade A space by both multinational GCCs and large domestic corporations. Despite global headwinds, the fundamentals remain strong, with occupiers prioritising prime locations in Gurugram and Noida that offer superior infrastructure and talent access. We anticipate this stability to continue supporting strong leasing metrics through the final quarter of the year.”
