India's Housing Market in Q3 2025: Sales Decline, Luxury Homes Thrive, and Prices Surge
The Indian real estate sector witnessed a notable shift in Q3 2025, with a decline in overall sales but a significant surge in luxury home sales and property values. Key trends include a 9% drop in sales volume, a 14% increase in sales value, and a 9% rise in average housing prices.
Real EstateLuxury HomesHousing MarketProperty PricesMmrReal Estate PuneOct 01, 2025
While home sales dipped, new housing launches across the top seven cities rose by 3% year-on-year to 96,690 units. This increase in supply, however, did not outpace demand, suggesting that the property market remains balanced and healthy. The trend indicates a steady and strong demand for homes across major cities.
In city-wise performance, Mumbai Metropolitan Region (MMR) led with 30,260 units sold, though this marked a 16% year-on-year drop. Pune followed with 16,620 units, down 13% from last year, while the National Capital Region (NCR) saw sales of 13,920 units, a decline of 11%. On the positive side, Chennai recorded 6,010 units, up 33% year-on-year, and Kolkata saw a 4% rise with 4,130 units sold.
New supply trends in Q3 2025 showed that MMR maintained stable housing sales at 29,565 units, flat year-on-year. Pune recorded a sharp 56% increase with 19,375 units, while Bengaluru slipped 5% to 15,190 units. NCR posted an 11% decline with 12,645 units, and Hyderabad saw the steepest fall at 38%, clocking 8,630 units. Meanwhile, Chennai grew 38% with 6,395 units, and Kolkata surged 56% to 4,890 units.
Luxury homes priced above ₹1.5 crore made up 38% of new housing supply in Q3 2025, while premium units in the ₹80 lakh–₹1.5 crore range accounted for 24%. Mid-segment homes between ₹40–80 lakh formed 23% of the share, and affordable homes under ₹40 lakh stood at 16%. The data shows that luxury and premium housing continue to drive the bulk of market demand and growth.
Unsold housing inventory across the top cities stood at 5,61,756 units in Q3 2025, slightly lower than 5,64,415 units a year ago. The marginal drop highlights how steady demand absorbed much of the new supply. This stability in inventory reflects the resilience of homebuyers and indicates a balanced trend in the housing market despite varied city-level performances.
Average housing prices across the top seven cities rose 9% year-on-year to ₹9,105 per sq. ft. NCR led the surge with a 24% jump, the highest among all regions. Bengaluru followed with a 10% increase, while the other cities recorded single-digit growth. This reflects a phase of moderation after three years of sharp price hikes.
MMR and Pune emerged as regional leaders, driving the market with their strong sales and supply performance. This reinforces their leading role in India's real estate sector and highlights the continued importance of these regions in the national property market.
Frequently Asked Questions
What was the overall trend in home sales in Q3 2025?
Home sales across India’s top seven cities fell 9% year-on-year to 97,080 units in Q3 2025.
How did the sales value change in Q3 2025?
The overall sales value increased by 14% to ₹1.52 lakh crore, driven by strong demand for luxury homes.
Which cities saw an increase in new housing launches?
Pune recorded a sharp 56% increase with 19,375 units, while Chennai grew 38% with 6,395 units, and Kolkata surged 56% to 4,890 units.
What segment of the housing market is driving growth?
Luxury homes priced above ₹1.5 crore made up 38% of new housing supply, while premium units in the ₹80 lakh–₹1.5 crore range accounted for 24%.
How did average housing prices change in Q3 2025?
Average housing prices across the top seven cities rose 9% year-on-year to ₹9,105 per sq. ft., with NCR leading the surge at 24%.
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