Housing Sales in Top Cities Down 12% in Jan–Sep 2025: Pune and Chennai Show Growth
Residential sales in India’s top seven cities saw a 12% year-on-year decline to 202,756 units in the first nine months of 2025, driven by high property prices, the monsoon season, and economic uncertainty. However, Pune and Chennai bucked the trend with growth in sales.
Housing MarketResidential SalesProperty PricesReal EstateEconomic UncertaintyReal Estate NewsOct 29, 2025
In Q3 2025, sales declined 9% year-on-year and 2% quarter-on-quarter to 67,980 units, in line with the nine-month trend. Pune and Chennai, however, bucked the slowdown, recording 14% and 13% year-on-year growth, respectively, it noted.
Bengaluru, Mumbai, and Pune together accounted for over 60% of total residential sales during the period, despite a 9% drop in their combined volumes. Delhi-NCR saw the sharpest fall in sales at 29%, followed by Kolkata at 21% and Mumbai at 16%, while Chennai stood out with a 15% rise in sales, the report said.
The premium segment showed marginal Y-o-Y growth in sales during Q3 2025, however homes priced within ₹1.5-3.0 crore experienced 14% Y-o-Y growth. Demand in the sub-₹1.0 crore range decreased by 23% Y-o-Y compared to the same period last year, it noted.
“January-September 2025 showed a shift toward a ‘value-driven’ market with premium housing demand driving overall sales despite 12% Y-o-Y drop-in total units sold. Interesting to note, demand for projects launched during the same quarter has been witnessing sustained momentum, with Q3 2025 following this trend. Even for the period between January to September 2025, approximately 24% of sales were contributed by properties launched during the first nine months of 2025, marginally higher than the share observed during January-September 2024,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
While premium housing saw strong demand, developers were cautious with new mid-range and affordable launches where demand has been sluggish over the last few quarters, the report said.
Q3 2025 brought 70,915 new homes to market, totalling 225,001 units for the first nine months, down just 1% annually. Kolkata, Chennai, Pune, and Bengaluru recorded strong annual growth in launched units, the report noted.
Home prices in India's seven major cities maintained their upward trajectory in Q3 2025, posting annual increases ranging from 6% to 16%. Kolkata topped the list with 16% growth, followed by Chennai at 14%, while Delhi NCR and Bengaluru both recorded 13% growth, it said.
Developers' focus on higher-margin premium developments, elevated construction costs, and sustained buyer demand drove broad-based price appreciation across all key markets, the report noted.
The Indian housing market is moving toward a balanced phase after strong growth, as rising property prices create affordability concerns and sales slowdown. Home prices will keep rising due to strong luxury demand, low inventory, and developers' pricing power, even as sales moderate. Overall volume growth will slow, but luxury and premium segments will drive the market, it said.
Frequently Asked Questions
What caused the 12% decline in housing sales in the top seven cities?
The decline in housing sales was driven by high property prices, the monsoon season, a pre-festive lull, and economic uncertainty.
Which cities saw a growth in housing sales despite the overall decline?
Pune and Chennai bucked the trend, recording 14% and 13% year-on-year growth, respectively.
What segment of the housing market showed growth in Q3 2025?
The premium segment showed marginal Y-o-Y growth in sales, and homes priced within ₹1.5-3.0 crore experienced 14% Y-o-Y growth.
How did the launch of new homes fare in Q3 2025?
Q3 2025 brought 70,915 new homes to market, totalling 225,001 units for the first nine months, down just 1% annually. Kolkata, Chennai, Pune, and Bengaluru recorded strong annual growth in launched units.
What is the outlook for the Indian housing market in the coming months?
The Indian housing market is moving toward a balanced phase, with rising property prices creating affordability concerns and a sales slowdown. Home prices will keep rising due to strong luxury demand, low inventory, and developers' pricing power.
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