This gap between supply and demand suggests that developers are confident about long-term growth, but buyers are taking more time to make decisions.

Supply Surge Outpaces Sales Growth

The significant rise in new project launches—up 32% quarter-on-quarter—has given buyers more choices, especially from reputed developers. However, the relatively slower sales growth shows that many buyers are evaluating options more carefully before committing.

JLL highlighted that around 26% of quarterly sales came from newly launched projects, showing that fresh supply continues to attract demand despite cautious sentiment.

Premium Housing Drives the Market

A major trend in Q1 2026 is the sharp shift towards premium housing. Homes priced above ₹1 crore dominated the market:

• 71% of total sales came from the ₹1 crore+ segment (up from 59% last year)
• Premium housing saw 30% year-on-year growth
• The ₹1.5–3 crore segment alone surged by 67% YoY

On the other hand, affordable housing (below ₹1 crore) saw a 24% decline, reflecting rising costs and a developer shift towards higher-margin projects.

Top Cities Continue to Lead

Four major cities—Bengaluru, Mumbai, Pune, and Delhi NCR—accounted for nearly 77% of total housing sales in Q1 2026.

• Bengaluru led with 18,043 units sold (18% growth)
• Delhi NCR saw strong 30% growth
• Chennai recorded the highest growth at 61%
• Mumbai remained stable with a slight dip of 2%
• Pune saw a 14% decline in sales

On the supply side, Bengaluru and Delhi NCR dominated new launches, together contributing nearly 45% of total launches.

Prices Continue to Rise

Residential property prices across India’s top cities rose between 8% and 20% year-on-year, driven by:

• Increasing land and construction costs
• Strong demand for premium homes
• Limited affordable housing supply in core urban areas

What JLL Says

Siva Krishnan, Senior Managing Director and Head of Residential Services at JLL India, said:

“The residential market is in a transitional phase where strong supply meets cautious buyer sentiment. The divergence between launches and sales is a healthy adjustment, not a concern. Premium housing demand remains strong, especially among affluent buyers.”

What It Means for Homebuyers

The current market presents a unique opportunity for buyers:

• More inventory means better choices and negotiation power
• Premium housing is becoming the new focus of developers
• Prices are likely to continue rising, though at a moderated pace

While short-term caution is visible, the long-term outlook remains positive, backed by urbanisation, infrastructure growth, and rising incomes.

Also Read: Luxury Real Estate set to Rebound in 2023

The post Housing Boom with a Twist: New Launches Jump 13% but Buyers Turn Cautious in Q1 2026 appeared first on Square Feat India.

This metric measures how long it takes a potential buyer to move from their first inquiry to paying a booking amount — a key indicator of real estate demand confidence.

Premium Homes Driving Faster Decisions

The biggest driver behind the reduced timeline is strong demand for higher-ticket housing.

Homes priced ₹2–3 crore sold fastest, with buyers closing deals in just 15 days in 2025, compared to 28 days in 2024 — a dramatic improvement of nearly two weeks.

According to Prashant Thakur, Executive Director & Head – Research and Advisory at ANAROCK:

“The drop in conversion days is essentially due to higher sales of big-ticket homes across top cities.”

This indicates that financially strong buyers are moving quickly when they see value, particularly in premium segments where inventory is limited.

Mid-Segment Buyers Take Longer

Not all segments are moving at the same pace.

Homes priced ₹1–2 crore took the longest to sell, averaging about 30 days. However, this still represents a sharp improvement from 47 days in 2024, meaning deals closed over 56% faster.

Luxury Segment Shows Cooling Trend

Interestingly, ultra-luxury homes priced above ₹3 crore saw the opposite trend. Conversion time rose from 17 days in 2024 to 27 days in 2025.

Santhosh Kumar, Vice Chairman of ANAROCK Group, explained that this reflects a market transition:

The increase indicates a shift from a seller-driven luxury market to a more cautious, selective one.

More supply in luxury projects has given buyers wider choices, leading to longer decision cycles.

Affordable Buyers Moving Faster Too

Budget housing also saw improved decision speed. Homes priced below ₹50 lakh saw conversion time drop from 28 days to about 19 days.

This faster pace is being driven by:

• Limited affordable supply
• Rising rents pushing tenants to buy
• Faster digital loan approvals
• Easier access to credit

Analysts say this signals necessity-driven demand rather than speculative buying.

What the Trend Really Means

The numbers suggest India’s housing market is becoming more segmented and mature:

• Premium buyers act quickly when they see opportunity
• Mid-segment buyers remain cautious and price-sensitive
• Luxury buyers are becoming more selective
• Budget buyers are driven by need, not speculation

The fastest decision-making segment today — ₹2–3 crore homes — is also the one developers are prioritising, as it offers strong margins and quick inventory turnover.

Conclusion

The shrinking lead-to-buy cycle shows that while overall housing sales may fluctuate, buyer intent remains strong. Instead of slowing down, serious buyers are acting faster — especially in segments where value, supply, and confidence align.

For developers, lenders, and policymakers, this trend confirms one thing: India’s housing demand isn’t weakening — it’s becoming smarter and more decisive.

Also Read: Why buying property during Festivals is considered ideal for homebuyers

The post Homebuyers Are Deciding Faster: Property Deal Time Drops to 26 Days as ₹2–3 Cr Homes Sell in Just 15 Days appeared first on Square Feat India.

While global house prices grew modestly by 2.4% annually in Q3 2025 — aided by decisive monetary easing from central banks — India’s performance underscores deep-rooted end-user demand, improving affordability, and a stable macroeconomic backdrop.

Turkey topped the global charts with a staggering 32.2% nominal price surge, followed by North Macedonia (25.1%) and Portugal (17.7%). However, in real (inflation-adjusted) terms, many high-growth markets saw gains eroded — with Turkey posting negative real growth (-0.8%).

India’s Top 10 Global Ranking – Q3 2025

Source: Knight Frank Research

Strong Sales Momentum & City-Level Price Surge

Residential sales across India’s top eight cities remained steady in 2025 at over 348,000 units, with H2 2025 volumes hitting the highest level since 2013. The quarters-to-sell ratio stayed balanced at 5.8 quarters, even as unsold inventory rose — largely due to higher-value project launches.

Price appreciation was widespread and led by:

• National Capital Region (NCR): +19% YoY
• Hyderabad : +13% YoY
• Bengaluru : +12% YoY
• Mumbai : +7% YoY

A structural shift is clearly visible: homes priced above INR 1 crore now account for around 50% of total sales — reflecting buyers’ preference for larger, better-quality homes in well-connected locations.

Developers have responded prudently — moderating new launches, focusing on execution, and offering targeted financing incentives rather than broad price corrections — helping sustain absorption.

Global Context & Outlook

Globally, easing monetary policies in Q3 2025 began supporting demand, but real price growth remains constrained in many markets due to lingering inflation. Emerging and select European markets led nominal gains, while several mature markets (Northern Europe, parts of East Asia) continued to see declines.

Liam Bailey, Knight Frank’s Global Head of Research, noted: “Nominal growth has edged higher again as central banks pivot towards cuts, but real gains are still hard-won. To see firmer growth into 2026, policymakers will need to maintain easing while inflation continues to retreat.”

Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, commented: “India’s housing market continues to stand apart in a global environment that remains uneven. The combination of strong economic growth, easing financial conditions and a decisive shift towards end-user-led demand has created a more mature and resilient residential cycle. As we move into 2026, we expect the market to be defined by stable absorption, selective price appreciation and disciplined supply, rather than speculative excess.”

With India’s economic fundamentals robust and monetary conditions turning supportive, the residential sector remains well-positioned to sustain its global outperformance in the year ahead.

Also Read: Good news: Home prices to correct by 15%

The post India’s Housing Market Shines Globally: 9.6% Price Growth in 2025 Outpaces World Average appeared first on Square Feat India.

While housing sales across the top seven cities declined by 14% year-on-year to around 3.96 lakh units, the total transaction value rose by 6%, crossing ₹6 lakh crore—underscoring the growing dominance of higher-priced homes and premium housing segments.

Fewer Homes Sold, More Money Spent

The divergence between falling volumes and rising transaction value reflects a structural shift in India’s housing demand. After a prolonged period of muted price growth between 2015 and 2019, average residential prices surged by nearly 54% between 2019 and 2024, supported by post-pandemic recovery, infrastructure investment, and consolidation among stronger developers.

In 2025, price appreciation moderated to about 8%, a trend the report describes as healthier and more sustainable, driven largely by end-user demand rather than speculative buying.

Affordable Housing Shrinks, Luxury Expands

One of the most notable shifts highlighted in the report is the sharp decline in affordable housing’s share of overall sales. Homes priced below ₹75 lakh, which accounted for nearly 60% of total sales in 2021, now make up only about 32% of the market.

In contrast, luxury and ultra-luxury housing has expanded rapidly.

“Luxury homes priced above ₹4 crore now contribute nearly 18–20% of total sales across the top seven cities, compared to just 1–2% before the pandemic,” said Anuj Puri, Chairman, ANAROCK Group.

The ultra-luxury segment—homes priced at ₹40 crore and above—saw a sharp 66% jump in sales in 2025, with the Mumbai Metropolitan Region (MMR) accounting for more than 70% of such transactions.

Bigger Homes, Changing Preferences

Buyer preferences have also evolved significantly. The report notes a growing demand for larger homes, with 3BHK and larger units now accounting for nearly 45–50% of demand, up from about 30% in 2018.

Average unit sizes across major cities have expanded by roughly 40% since 2021, driven by post-pandemic lifestyle changes and work-from-home flexibility. The NCR market has seen the most pronounced shift, with average home sizes nearly doubling between 2022 and 2025.

Wellness-oriented layouts, lifestyle amenities, and low-density developments are increasingly influencing purchase decisions, particularly in Tier I cities, while Tier II cities are gradually gaining traction.

Supply Side Sees Institutionalisation

On the supply front, India’s residential market is becoming increasingly institutionalised. Listed and Grade-A developers now account for nearly 45% of total residential supply, up from 28% five years ago.

This consolidation reflects stronger balance sheets, improved governance, better execution capabilities, and rising buyer confidence in established brands.

Over the past five years, approximately 12,700 acres of land have been transacted across India, with nearly 60% earmarked for residential development, signalling long-term confidence in housing demand.

Macro Fundamentals Remain Supportive

The report highlights strong macroeconomic tailwinds supporting the sector’s long-term outlook. Private consumption continues to contribute nearly 60% of India’s GDP, while government capital expenditure has nearly tripled since FY19. The banking system remains stable, with net NPAs at multi-decade lows.

Importantly, India’s mortgage-to-GDP ratio stands at just ~11%, significantly lower than global peers—indicating substantial headroom for housing finance growth.

As India moves toward becoming a USD 7.3 trillion economy, the report concludes that residential real estate is no longer merely a cyclical sector but a structural pillar of economic growth, capital formation, and urban transformation.

Also Read: Will the Housing Market Create Another Peak in 2024?

The post India’s Housing Market Shifts Gears in 2025 as Value Growth Outpaces Sales Volumes appeared first on Square Feat India.

The report highlights that while overall volumes have plateaued after a strong multi-year upcycle, the market remains structurally healthy, supported by end-user demand, manageable inventory levels, and sustained price growth across key cities.

Second Half of 2025 Records Strongest Sales Since 2013

A key takeaway from the report is the performance of the second half of the year. H2 2025 residential sales touched 178,406 units, making it the strongest second-half performance since 2013.

Sales during H2 2025 were marginally higher by 0.4% year-on-year, indicating that buyer sentiment remained resilient despite affordability pressures and higher ticket sizes.

Market health indicators also remained stable, with the quarters-to-sell (QTS) ratio holding firm at 5.8 quarters, signalling efficient inventory absorption even as unsold stock edged up marginally.

Mumbai Leads Sales; NCR Sees Sharp Price Growth

Mumbai continued to dominate India’s residential market, accounting for 29% of total sales in 2025.

• Mumbai: 97,188 units sold in 2025, up 1% YoY
• Bengaluru: 55,373 units, broadly stable YoY
• NCR: 52,452 units, down 9% YoY
• Pune: 50,921 units, down 3% YoY

While NCR saw a decline in volumes, it emerged as the strongest price growth market, recording a 19% year-on-year increase in weighted average prices, the highest among all major cities. Hyderabad, Bengaluru, and Mumbai followed with price growth of 13%, 12%, and 7%, respectively.

Knight Frank attributes the price rise largely to a higher share of premium and mid-premium launches, rising land and construction costs, and sustained demand in well-located projects.

Homes Above ₹1 Crore Now Account for Half of All Sales

One of the most significant structural shifts highlighted in the report is the growing dominance of higher-ticket housing.

• Homes priced above ₹1 crore accounted for nearly 50% of all residential sales in 2025
• Sales in this segment rose 14% year-on-year to over 175,000 units
• In contrast, homes priced below ₹50 lakh saw a 17% YoY decline, dropping to just 21% of total sales

This marks a sharp shift from 2022, when sub-₹50 lakh homes accounted for nearly 63% of total sales, underscoring a decisive tilt toward premium housing.

The mid-range segment (₹50 lakh to ₹1 crore) also witnessed moderation, with volumes declining 8% YoY, pointing to increasing demand polarisation.

Affordable Housing Under Pressure

While overall affordability has improved in several cities due to income growth and stable interest rates, the report notes that lower-income segments continue to face structural challenges.

Limited availability of viable affordable housing stock, rising land prices, higher construction costs, and constraints in access to formal credit have collectively weighed on demand in the sub-₹50 lakh category. Supply trends in this segment have mirrored demand, reducing the risk of speculative inventory build-up.

Inventory Levels Rise, But Market Remains Balanced

Residential launches across the top eight cities totalled 362,184 units in 2025, declining 3% YoY but still exceeding sales, leading to a gradual increase in unsold inventory.

However, Knight Frank notes that inventory levels remain manageable and well-distributed, with QTS remaining below six quarters nationally. Cities such as Pune, Chennai, and Kolkata continue to show relatively faster inventory churn, while NCR and Ahmedabad exhibit longer selling cycles.

Expert Commentary: Market Enters a Consolidation Phase

Commenting on the findings, Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said:

“India’s residential market in 2025 has clearly entered a phase of consolidation at elevated levels. With approximately 3.48 lakh homes sold during the year, demand has held steady after an exceptional multi-year run. This reflects genuine end-user depth rather than episodic spikes. Manageable inventory levels and low quarters-to-sell reinforce that the residential sector remains active, disciplined and structurally balanced as it moves into 2026.”

Echoing this view, Gulam Zia, International Partner and Senior Executive Director, Knight Frank India, added:

“Homes priced above ₹1 crore now constitute half of total sales, highlighting the decisive tilt toward higher-value products. While affordable segments remain subdued, larger markets continue to absorb supply steadily despite price appreciation, pointing to a structurally sound market.”

Outlook for 2026: Stability Over Volume Expansion

Looking ahead, Knight Frank expects 2026 to be characterised by stable absorption, selective price appreciation, and disciplined supply additions. While rapid volume growth may remain limited after two years of peak sales, the premium and mid-premium segments are likely to continue anchoring market activity.

The residential sector, the report concludes, is transitioning from expansion to maturity-led growth, with city-specific dynamics increasingly shaping outcomes.

Also Read: Residential sales surge to a 15-Year high 

The post Residential Sales Hold Momentum in 2025; Over 3.48 Lakh Homes Sold Across Top Cities appeared first on Square Feat India.

Mumbai, November 15, 2025: The 46th Knight Frank–NAREDCO Real Estate Sentiment Index for Q3 2025 (July–September) shows continued optimism across India’s property market, reinforcing the sector’s resilience amid global economic headwinds.

The Current Sentiment Score increased to 59, up from 56 in Q2 2025 — the highest level recorded this year — while the Future Sentiment Score held steady at 61, remaining firmly in the optimistic zone.

Stronger market fundamentals, robust office leasing, resilient high-ticket residential demand, stable interest rates, and improved liquidity have collectively boosted industry confidence.

Market Fundamentals Improve Across Segments

The positive sentiment is driven by:

• Stable interest rates and eased inflation
• Healthy domestic consumption
• Strong momentum in premium residential sales
• Deepening office leasing pipelines
• Consistent macroeconomic policy environment

Both developers and financial institutions reported growing confidence, reflecting broad-based improvement across the sector.

South Leads Optimism; North Shows a Strong Rebound

Sentiment remained optimistic across regions:

• South Zone: Highest score at 62, driven by strong leasing in Bengaluru and Hyderabad and robust demand for high-value homes.
• North Zone: Rose to 56, supported by steady office activity in NCR.
• East Zone: Slight moderation to 59 amid lower residential launches.
• West Zone: Dipped marginally to 59, though strong office absorption in Mumbai and Pune cushioned residential softness.

Developers Cautious, Non-Developers Steady in Confidence

• Developers’ sentiment: Moderated to 59 from 63 as they remain cautious due to elevated input costs and slower mid–low segment demand.
• Non-developers (banks, institutions, PE funds): Maintained stable optimism, recording a Future Sentiment Score of 61.

This alignment suggests market confidence anchored in liquidity, asset quality, and sustained formal-sector investment.

Residential Market: High-Ticket Demand Drives Optimism

Residential sentiment remained strong in Q3 2025:

• 71% expect launches to remain stable or increase
• 74% expect sales to stay stable or improve
• 92% expect prices to remain stable or rise

NCR, Bengaluru, and Hyderabad continued to lead price growth with 13%–19% YoY increases, driven by demand in upper-mid and premium categories.

Office Market: Strongest Performer Across Asset Classes

The office market displayed the highest level of optimism:

• Leasing: 55% expect an increase
• Supply: 38% expect growth, 40% expect stability
• Rents: 95% expect stability or upward movement

Limited Grade A supply, GCC expansion, IT-led demand, and growing pre-commitments continue to support sector strength.

Favourable Economic & Funding Environment

• 78% foresee stable or improved economic momentum
• 86% expect funding conditions to stay stable or get better

Easing inflation, strong fiscal spending, active capital deployment into premium housing, and the RBI’s accommodative stance are helping sustain market momentum.

Expert Commentary

Knight Frank India CMD Shishir Baijal said the sustained optimism “underscores the sector’s resilience and adaptability,” noting that steady demand in premium housing and a strong office pipeline continue to shape a positive outlook.

NAREDCO President Parveen Jain added that confidence remains supported by “policy continuity, stable demand, and healthy funding conditions,” especially in premium housing and office segments.

Conclusion

The Knight Frank–NAREDCO Sentiment Index for Q3 2025 reaffirms that India’s real estate sector remains on a solid growth trajectory. With inflation moderated, funding robust, and demand consistently strong across asset classes, the sector enters Q4 2025 with firm confidence and balanced growth expectations.

Also Read: Realty Stocks Close First Day of the Week on a Firm Note: DLF, Godrej, Lodha Lead Gains as Festive Tailwinds Persist

The post Real Estate Optimism Strengthens in Q3 2025 as Sentiment Index Climbs appeared first on Square Feat India.

This trend highlights how premium housing demand remains strong, driven by affluent homebuyers prioritizing lifestyle, location, and long-term asset value — even amid rising property prices and cautious sentiment in the broader market.

Premium Homes Power the Market

• Apartments priced at ₹1 crore and above contributed 62% of total home sales between January and September 2025 — up sharply from 52% in the same period last year.
• The biggest surge came from the ₹1.5 crore–₹3 crore bracket, which saw a 10% rise in sales, showing strong appetite for mid-premium and luxury homes.
• In contrast, homes priced below ₹1 crore saw a 30% Y-o-Y decline, indicating waning traction in the mass housing segment.

Key takeaway: The Indian housing market is clearly moving toward value-driven and quality-led demand, as end-users and investors alike prioritize long-term appreciation and better living standards over entry-level affordability.

Top Cities Continue to Lead, Despite a Slowdown

Bengaluru, Mumbai, and Pune remained the top-performing cities, together accounting for more than 60% of total sales across India’s seven major metros.

• Pune and Chennai were standout performers with 14% and 13% annual sales growth, respectively.
• Delhi NCR and Mumbai saw sharper corrections due to higher pricing and supply adjustments.
• Despite a 9% decline in Q3 2025 sales, the premium category held steady, particularly in the ₹1.5–3 crore segment, which grew 14% Y-o-Y during the quarter.

According to Dr. Samantak Das, Chief Economist and Head of Research, JLL India:

“The January–September 2025 period has seen the market recalibrate toward value. Even with lower volumes, demand for premium housing remains steady, and nearly a quarter of total sales came from projects launched within the same year — indicating continued buyer confidence in new supply.”

Developers Shift Focus to High-Value Projects

Developers are realigning their portfolios toward premium housing, reflecting both demand resilience and higher margins.

• New home launches across top cities stood at 2.25 lakh units in the first nine months of 2025, marginally down 1% Y-o-Y.
• However, launches in the ₹1 crore+ category grew by 5%, underscoring the pivot to high-value products.
• Chennai, Kolkata, Pune, and Bengaluru witnessed the strongest growth in new project launches.

As Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), JLL India, noted:

“Developers have been cautious in mid-income and affordable launches, where demand has softened. The focus on premium projects has helped stabilize inventory levels and sustain healthy absorption rates.”

Prices Keep Rising — Even as Volumes Dip

While overall sales volumes dipped, home prices continued their upward trajectory across all major cities:

• Kolkata led with a 16% Y-o-Y increase, followed by Chennai (14%), and Delhi NCR and Bengaluru (13%).
• The combination of higher input costs, premium product launches, and sustained demand helped developers maintain pricing power.

In short, price resilience amid slower sales reflects a maturing market that is consolidating toward financially stronger developers and serious end-users.

What It Means for Homebuyers and Developers

For homebuyers:

• Premium projects are becoming the new normal in major metros.
• Rising prices suggest urgency — waiting may cost more in 2026.
• Projects by branded developers are increasingly seen as safe, value-stable investments.

For developers:

• The premium segment offers better margins and faster absorption.
• Slower mid-range sales could push smaller players to consolidate or collaborate with larger firms.
• Market maturity will encourage sustainable, experience-driven housing instead of speculative supply.

Outlook: A Premium-Led Future

The Indian housing market is transitioning from rapid expansion to measured, value-oriented growth. Rising construction costs, land prices, and consumer preferences are collectively pushing the market toward the upper end.

Luxury and premium housing will continue to drive overall market momentum through 2026, even as total volumes stabilize. For serious developers, this presents a window to build credibility, deliver quality, and capture the aspirational buyer base shaping India’s next real estate cycle.

Also Read: Mumbai Property Registrations Rise Despite Shraadh Period

The post 🏙️ Premium Housing Sales Rise in 2025 Even as Overall Home Sales Fall 12% appeared first on Square Feat India.

A total of 6,612 residential units, worth ₹4,804 crore, were registered during the month — a 70% increase in value terms YoY and a 3% rise month-on-month (MoM). This surge came despite the traditionally slow Shradh/Pitra Paksha period (7–21 September), which was immediately followed by the festive season, boosting sentiment and registrations.

The weighted average price of registered properties in Hyderabad rose 20% YoY to ₹4,759 per sq ft, underlining the city’s premiumisation trend. Rangareddy district led the growth with a 28% YoY price jump, cementing its position as a prime residential and commercial hub.

Premium Segment Powers Growth

High-value homes continued to dominate Hyderabad’s housing market.

• Registrations of homes priced above ₹1 crore surged 151% YoY, contributing 22% of total registrations.
• In value terms, this segment accounted for 53% of total transaction value, underscoring a clear shift towards larger, premium homes with superior amenities.
• Properties sized above 2,000 sq ft made up 15% of registrations, up from 13% a year ago.

District-Wise Trends

• Rangareddy accounted for 45% of the total registrations, followed by Medchal–Malkajgiri (40%), while Hyderabad district contributed 14%.
• Rangareddy also recorded three of the top five transactions of the month, including a property in Kondapur valued at over ₹20 crore.

Market Resilience During Shradh

While September typically sees a slowdown in registrations due to the inauspicious Shradh period, the contrast between 2024 and 2025 is stark. Last year, half the month coincided with Shradh (17 Sept–2 Oct 2024), leading to a decline in registrations. This year, however, registrations bounced back quickly as the festive season began immediately after.

Expert View

“Hyderabad’s residential market continues to exemplify strength and aspiration, sustaining its growth momentum even during traditionally subdued periods like the Shradh fortnight,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“The sharp 35% annual rise in registrations and a 70% surge in value highlight not just volume expansion but the city’s steady march toward premiumisation. Homes priced above ₹1 crore now make up over one-fifth of all registrations and more than half of transaction value — a clear reflection of evolving buyer preferences for larger, high-value homes.”

Also Read: How Food & Beverage Is Changing India’s Shopping & Real Estate Spaces

The post Hyderabad Residential Registrations Surge 35% YoY in September 2025; Premium Housing Demand Hits Record High appeared first on Square Feat India.

For homebuyers, this decision directly translates into predictable EMIs and continued affordability of home loans—a crucial factor as the festive season approaches. While developers were hoping for a rate cut to spur even more demand, the current stability provides a conducive environment for long-term planning and financial confidence.

Why This Matters for You as a Homebuyer

Industry experts believe the RBI’s decision will help preserve affordability and sustain housing demand, particularly in mid- and premium-segment homes, which have seen steady interest despite recent global headwinds.

Prashant Sharma, President of NAREDCO Maharashtra, called the move a “cautious yet balanced approach” that keeps homebuyer sentiment strong. He added that while the sector welcomes stability, a calibrated rate cut in the future could further support growth—especially in affordable housing.

Rajiv Agrawal, Promoter & Co-Founder of Saarathi Group, highlighted that unchanged borrowing costs will aid Mumbai’s wave of redevelopment projects, making long-gestation cluster and society redevelopments more financially feasible. This means buyers can expect timely project deliveries and fresh housing supply in urban areas.

Similarly, Virendra Vora, Promoter & MD of Excel Infra Construction LLP, said stable rates are a “positive signal for Mumbai’s next wave of urban regeneration,” making it easier for developers to launch premium redeveloped homes in high-potential zones like Bandra Reclamation.

Bank Loan Rates & Market Momentum

Shishir Baijal, CMD of Knight Frank India, noted that with some banks already reducing home loan rates, policy stability will encourage affordability—especially in mid- and low-income segments. He said, “More transmission of past cuts is underway, which will further support housing demand.”

Dr. Samantak Das, Chief Economist, JLL, explained that after 100 basis points of rate cuts this year, holding rates now gives the system time to fully pass on benefits to buyers. He stressed that stability helps avoid over-reliance on rate cuts and instead builds a market driven by genuine demand.

However, the affordable housing market is facing challenges. Anuj Puri, Chairman of ANAROCK Group, pointed out that sales in the top metros fell by 20% year-on-year in Q2 2025, and average residential prices have surged 39% in two years. The ongoing US tariffs could impact MSMEs—the key customer base for affordable homes. Still, he expects developers to roll out festive offers and flexible payment plans to improve affordability.

Confidence, Festive Season, and Long-Term Growth

Multiple developers and analysts agree that stability will reinforce buyer confidence ahead of the festive season.

• Manju Yagnik, Vice Chairperson of Nahar Group, believes steady rates will support sustained demand in high-growth markets by keeping EMIs manageable.
• Dharmendra Raichura of Ashar Group said unchanged rates, combined with infrastructure development in regions like MMR and Thane, will keep housing demand strong.
• Sunny Bijlani of Supreme Universal added that policy stability will attract both domestic and NRI buyers, especially as urbanisation and lifestyle aspirations rise.

From the luxury segment perspective, Amit Goyal, MD of India Sotheby’s International Realty, said that with GDP growth forecast at 6.5% and inflation trending softer, housing momentum will stay “cautiously positive.”

What Experts Want Next

While most agree that holding rates now is prudent, there’s anticipation for a possible rate cut in the October policy review.

• Piyush Bothra of Square Yards said the onus is now on banks to ensure full transmission of past cuts to homebuyers.
• Vimal Nadar of Colliers India highlighted that with inflation under control, upcoming quarters could see further reductions passed on, boosting buyer activity during the festive season.
• Amit Prakash Singh of Urban Money stressed that a cut in October could act as a “timely catalyst” to boost festive demand.
• Shrinivas Rao of Vestian added that the RBI’s neutral stance will encourage fence-sitters to make investment decisions.

Bottom Line for Homebuyers

The RBI’s decision may not have brought a fresh cut in rates, but it keeps the ground steady for you to plan your purchase without fear of sudden EMI shocks. With the festive season around the corner, stable policy, possible future cuts, and developer incentives could make the next few months a strategic window for homebuyers.

Also Read: RBI Cuts Repo Rate by 25bps: Lower Home Loan Interest for Homebuyers

The post RBI Holds Repo Rate at 5.5% — Home Loan Interest To Remain As It Is appeared first on Square Feat India.

Sentiment Has Reversed — Developers Are Confident Again

After a year of doubt, real estate players are finally back in the game.

“Q2 2025 represents a turning point… stakeholders are repositioning for long-term growth.”
— Shishir Baijal, CMD, Knight Frank India

Why this matters to you:
When developers feel positive, they:

• Launch more projects
• Raise prices steadily
• Focus on faster delivery

This directly affects your options, costs, and buying timeline.

EMIs Are Falling — But Not for Long

The RBI has already cut repo rates by 100 bps in H1 2025, leading to:

• Lower home loan rates
• Cheaper EMIs
• Easier access to housing credit

“Developers’ outlook has strengthened amid improved liquidity and lower borrowing costs.”
— Hari Babu, President, NAREDCO

Why this matters to you:
The lower EMI window won’t last forever. Once property demand picks up further, interest rates could stabilise or even rise again. This is a limited-time affordability boost.

Premium Homes Are Booming — Budget Homes Are Fading

The report makes it clear: developers are chasing premium buyers. Homes priced above ₹1 crore are seeing:

• More launches
• More funding
• Faster sales

Meanwhile, mid-income and affordable projects are facing:

• Delays in launch
• Lower margins
• Cautious funding

“Premium and lifestyle-led launches are being curated for high-performing micro-markets.”
— Knight Frank Research

Why this matters to you:
If you’re a mid-income buyer, your options may shrink. If you’re a premium buyer, you’re in the spotlight — and prices could rise fast.

Top Markets to Watch — Sentiment by Region

Why this matters to you:
If you’re buying in the South or West, price momentum may rise sooner. If you’re in the North, there’s early-stage opportunity. But no region is showing pessimism — that’s a clear sign of a market pivot.

Prices Are Holding — With Some Cities Racing Ahead

• 94% of stakeholders expect prices to stay stable or rise
• Double-digit price growth already seen in:
  • Bengaluru
  • NCR
  • Chennai

Why this matters to you:
Waiting for a price correction? It’s not happening — and in key markets, it’s already too late. This could be your last chance at current pricing.

Funding is Back — More Supply is Coming (But Not Everywhere)

“Capital providers are realigning with developers — especially in premium and commercial segments.”

Why this matters to you:
Expect better funded projects, more timely possession, and more branded developers — especially if you’re buying above ₹1 crore.

Bottom Line for Homebuyers

Interest rates are low — don’t miss the window
Prices are holding or rising — especially in top cities
Developers are doubling down on premium homes
Affordable housing is being sidelined — choose carefully
Macro indicators are strong — this isn’t a temporary spike

Also Read: Consumer Housing Sentiment Index robust; strong buyer confidence and rising incomes boost the sector

The post EMIs May Drop, Prices May Rise — Here’s What Q2 2025 Real Estate Data Means for You appeared first on Square Feat India.