Housing Sales Decline 9% in Q3 2025, but Luxury Market Thrives
India's housing sales in the top seven cities dropped by 9% in Q3 2025, but the overall market value grew by 14% due to strong demand for premium properties.
Housing SalesLuxury PropertiesMarket ValueReal EstateTop CitiesReal Estate NewsOct 03, 2025
The fall in sales was mostly countered by high demand for upscale houses. Homes priced over ₹1.5 crore emerged as the most wanted among most buyers. With the price of residential property increasing by almost 9% on average across big cities, the overall value of the market grew. The National Capital Region (NCR) topped the growth charts with a 24% year-on-year increase.
City-wise, the performance was mixed:
- Mumbai Metropolitan Region (MMR): Sales fell by 16% to 30,260 units from 36,195 during the previous year, but the city remained on top in terms of volume.
- Pune: Dealings decreased by 13% to 16,620 units.
- Delhi-NCR: There was an 11% drop with 13,920 houses being sold.
- Bengaluru: Sales were nearly flat with a marginal 1% decline to 14,835 units.
- Hyderabad: Suffered an 11% decline to 11,305 units.
- Chennai: Defied the trend with a robust 33% increase to 6,010 units.
- Kolkata: Recorded modest growth of 4% to 4,130 units.
Quarter-on-quarter trends also showed positive signs. India’s luxury housing space expanded by 85% in the first half of 2025, driven by rising affluence, investor sentiment, and lifestyle desires. Delhi-NCR spearheaded almost 57% of sales, followed by Mumbai and other metro areas, recording strong performance. In terms of housing demand, sales increased modestly from 96,300 units in Q2 to 97,080 units in Q3 2025, a 1% increment. More significantly, the aggregate transaction value increased from ₹1.47 lakh crore to ₹1.52 lakh crore, a 3% increase. Inventory conditions tightened in leading cities, reflecting solid absorption despite rising property prices.
The variations in performance between cities indicate a change in the market scenario. Hubs such as MMR, Pune, NCR, and Hyderabad experienced slowdowns, while Chennai and Kolkata maintained growth, with Chennai leading the charge with double-digit growth. Experts foresee luxury and premium properties continuing to push market value, while affordable housing may face pressure due to increasing costs and declining buyer affordability.
Frequently Asked Questions
What was the overall change in housing sales in Q3 2025 compared to the previous year?
Housing sales in the top seven cities in India fell by 9% in Q3 2025 compared to the previous year.
Which region saw the highest growth in the housing market?
The National Capital Region (NCR) saw the highest growth with a 24% year-on-year increase in the housing market.
How did luxury properties perform in the housing market?
Luxury properties, priced over ₹1.5 crore, showed strong demand and significantly contributed to the overall market value growth.
Which city defied the trend of declining sales?
Chennai defied the trend with a robust 33% increase in housing sales.
What is the outlook for the affordable housing segment?
Experts foresee pressure on the affordable housing segment due to increasing costs and declining buyer affordability.
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