Premiumization Takes Centre Stage as Buyers Opt for High-Value Homes Over Mass Market
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
