Housing Sales Slump 12% in Top Seven Indian Cities, Pune and Chennai Show Growth
Residential sales in India's top seven cities declined 12% year-on-year during January–September 2025, driven by high property prices and economic uncertainty. Pune and Chennai, however, bucked the trend with growth in sales.
Housing SalesReal EstateProperty PricesEconomic UncertaintyMarket TrendsReal Estate PuneOct 28, 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 was the overall decline in housing sales in India's top seven cities in January–September 2025?
Residential sales across India’s top seven cities fell 12% year-on-year to 202,756 units during January–September 2025.
Which cities showed growth in housing sales despite the overall decline?
Pune and Chennai bucked the trend, recording 14% and 13% year-on-year growth, respectively.
What factors contributed to the decline in housing sales?
The decline in housing sales was driven by high property prices, the monsoon season, a pre-festive lull, and economic uncertainty.
How did the premium housing segment perform in Q3 2025?
The premium segment showed marginal Y-o-Y growth in sales during Q3 2025, with homes priced within ₹1.5-3.0 crore experiencing 14% Y-o-Y growth.
What is the outlook for the Indian housing market according to the JLL report?
The Indian housing market is moving toward a balanced phase after strong growth, with home prices expected to keep rising due to strong luxury demand, low inventory, and developers' pricing power, even as sales moderate.
Related News Articles
The Hamptons: A Real Estate Agent's Guide to the Hottest Spots This Summer
From Sagaponack to Southampton, a real-estate agent shares his insider knowledge on the best places to see and be seen in the Hamptons this summer.
Ayodhya's Real Estate Boom: Fractional Ownership Platform Closes ₹10.40 Crore Land Deal
The Indian fractional ownership market is taking a leap forward, making high-value real estate accessible to a broader audience through fractional ownership and property tokenization.
India's Rise to Global Economic Superpower: Unlocking Investment Potential
India's Golden Era, Global Investment, Economic Superpower, Adani BT India@100 Summit
Luxury and Sustainability in Tier-2 Cities: Real Estate Prospects in 2025
India’s primary housing market is expected to witness a moderate single-digit price rise in 2025, following a significant 21% surge in 2024. Industry experts attribute this trend to strong demand and limited supply, with a growing focus on sustainability
RBI Rate Cut: Potential Savings on Your Home Loan EMI for a Rs 30 Lakh Loan Over 20 Years
The recent RBI rate cut is expected to boost the real estate market and potentially save home loan borrowers a significant amount on their EMIs. Sandeep Mangla, Managing Director of Forteasia Realty Pvt. Ltd, shares insights on the impact.
Can India Meet the Power Demand for AI Data Centres by 2030?
India is facing a significant challenge in meeting the power and real estate demands for AI-driven data centres by 2030. According to recent reports, the country will need an additional 40-50 TWH of electricity and 45-50 million square feet of real estate to support this growth.