India’s housing market is witnessing a striking shift — buyers are spending more even as sales volumes remain largely flat. According to the latest Real Insight Residential: July–September 2025 report by PropTiger.com (part of Aurum PropTech), the total value of homes sold across eight major cities surged by 14% year-on-year, touching ₹1.52 lakh crore, even though the number of units sold dipped marginally by 1% to 95,547 units.

This surge reflects India’s housing market’s pivot towards premiumization, with buyers increasingly favouring high-ticket homes over entry-level options. New project launches, meanwhile, dropped 5.1% year-on-year to 87,179 units but showed a 3.6% quarter-on-quarter uptick, signaling cautious optimism among developers.

“The Indian residential market is clearly transitioning from a broad-based, volume-led recovery to a more mature and sustainable phase of value-driven growth,” said Onkar Shetye, Executive Director, Aurum PropTech. “The premium segment remains the market’s primary growth engine, supported by stable macro fundamentals and strong buyer sentiment.”

South Cities Power Sales Surge; MMR Still Largest Market

The Q3 2025 numbers reveal sharp regional divergences. Southern markets emerged as the new growth engines, while Western hubs saw a correction.

• Chennai led the charge with a 120.9% YoY jump in home sales.
• Hyderabad followed with a 52.7% YoY increase, supported by robust demand.
• Bengaluru also saw healthy growth of 17.6% YoY.
• In contrast, MMR (Mumbai Metropolitan Region) recorded a 22.2% annual decline, though it continued to dominate with a 24.4% share of total quarterly sales.
• Pune and NCR too witnessed declines of 27.9% and 21.2%, respectively.

City-wise share of total sales (Q3 2025):

• MMR: 24.4%
• Hyderabad: 18.5%
• Bengaluru: 13.7%
• Pune: 13.6%

Kolkata and Chennai Lead in New Launches

While overall new launches fell YoY, developer activity surged in select regions — especially those experiencing strong sales momentum.

Key highlights:

• Kolkata posted a phenomenal 387.7% YoY surge in new supply.
• Chennai saw new launches more than double (105% YoY).
• Hyderabad witnessed a 46.6% rise in launches, reflecting developer confidence.
• In contrast, NCR and Bengaluru saw sharp YoY declines in supply, as developers remained selective in launching projects.

This targeted approach by developers shows a clear alignment with premium demand pockets rather than a mass-market strategy.

Developers Bet on Premium, Policy Support Boosts Confidence

According to Onkar Shetye, multiple factors are cushioning the market:

• Stable interest rates have sustained affordability for higher-end buyers.
• Policy measures, like the recent GST reduction on cement, have helped offset input cost pressures.
• Developers are increasingly prioritizing premium projects, where margins are stronger and buyer interest remains steady.

“Favorable conditions have provided a crucial buffer against rising input costs and bolstered developer confidence,” Shetye added. “The upcoming festive quarter will be a key indicator of consumer demand, especially in the mid and entry-level segments.”

The Big Picture: Fewer Homes, Bigger Value

The data signals a fundamental change in India’s real estate market structure:

• Volume-led growth is giving way to value-led growth.
• Developers are recalibrating launches to match premium buyer demand.
• Southern cities are emerging as key demand and supply hubs.
• Despite regional dips, overall market value has jumped significantly, underscoring premium housing’s resilience.

With the festive quarter ahead, developers are expected to push out high-value projects, banking on strong sentiment among upper-income homebuyers.

Also Read: Home Prices Keep Rising Even as Sales Slow

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The report, titled Real Insight: Residential Annual Round-up 2024 by PropTiger.com, revealed that while property prices saw a significant uptick across various cities during the October-December period of 2024, the rise varied by region. In particular, the NCR housing market recorded the sharpest surge in property values, reflecting the region’s growing demand for high-end real estate. This price escalation came despite a general slowdown in price growth in some cities, like Hyderabad, which saw a more modest 3% increase after nearly a decade of strong growth.

Price Growth Across Major Cities

The report highlights property price trends in key residential markets across the country, with Delhi-NCR standing out with the highest increase. The average price per square foot in Delhi NCR rose from ₹5,445 in Q4 2023 to ₹8,105 in Q4 2024, marking a 49% YoY growth. Other major cities also saw impressive growth:

• Ahmedabad: ₹4,000 to ₹4,402 (10% increase)
• Bengaluru: ₹6,744 to ₹7,536 (12% increase)
• Chennai: ₹6,200 to ₹7,173 (16% increase)
• Hyderabad: ₹6,842 to ₹7,053 (3% increase)
• Kolkata: ₹5,100 to ₹5,633 (10% increase)
• Mumbai Metropolitan Region (MMR): ₹10,712 to ₹12,600 (18% increase)
• Pune: ₹6,140 to ₹7,108 (16% increase)

These figures suggest that the demand for residential properties across these cities continues to grow, particularly in areas with strong economic prospects and increasing infrastructural development.

NCR’s Unstoppable Growth

The NCR region’s remarkable surge in property prices can be attributed to several factors, including a thriving economy, high-net-worth individuals (HNIs) making substantial investments, and the growing presence of newly-listed start-ups. Areas like Gurugram, Noida, and Greater Noida saw significant increases in home sales, with Gurugram experiencing a 144% rise in sales YoY. Despite a nationwide dip of 26% in home sales, key NCR cities have maintained strong growth in the residential market.

The report attributes this resilience in NCR’s housing market to developers’ focus on premium housing offerings, a trend driven by the high demand from HNIs and business professionals. Developers are prioritizing luxury properties over affordable housing, thus catering to the growing demand for high-end real estate in the region.

Mumbai and Other Key Markets

Similarly, Mumbai’s residential property market saw an 18% YoY increase in property prices, driven by similar factors of demand from high-net-worth individuals, the presence of Bollywood celebrities, and Mumbai’s status as India’s financial hub. The city continues to be one of the most unaffordable housing markets in the world, attracting significant interest from both domestic and international investors.

Despite strong demand, the rising costs of building materials, land, and labor have made affordability a growing concern. As construction costs continue to climb, affordability issues are expected to deepen, especially for the middle class, which heavily relies on government subsidies for homeownership.

The Need for Policy Measures

Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, highlighted the challenges posed by the steep rise in property prices, stressing that while this growth indicates strong demand and positive buyer sentiment, it also raises concerns over affordability, particularly for lower-income buyers.

Agarwala suggested that the government must introduce policy measures to address affordability issues, particularly in light of rising inflation and slowing growth. He emphasized that positive changes in tax laws in the upcoming Budget, coupled with potential rate cuts by the Reserve Bank of India (RBI), could help ease affordability challenges for India’s growing middle class.

The PropTiger.com report underscores the need for a balanced approach to the housing market that promotes both luxury and affordable housing to ensure that all segments of society can benefit from the country’s real estate growth.

Conclusion

The 2024 property market performance reflects continued strong demand in India’s key residential markets, with Delhi-NCR and Mumbai leading the surge. However, the rising costs of materials and labor pose a challenge to affordability, urging the government and industry stakeholders to take proactive steps to ensure sustainable growth and accessibility in the housing sector.

Also Read: auction of developer property

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