India's Housing Market in Q3 2025: Sales Drop, Luxury Boom, and Prices Surge
Explore the key trends in India's real estate market for Q3 2025, including a decline in sales, a surge in luxury home demand, and rising property prices across major cities.
Real EstateLuxury HomesHousing MarketProperty PricesUnsold InventoryReal EstateOct 01, 2025
While home sales dipped in Q3 2025, new housing launches across the top seven cities rose 3% year-on-year to 96,690 units. Despite this increase, sales continued to outpace new supply. This indicates that demand for homes remains steady and strong. The trend points to a healthy property market balance across major cities.
In city-wise trends, the 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 NCR saw sales of 13,920 units, an 11% decline. 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.
In Q3 2025, the Mumbai Metropolitan Region (MMR) saw stable housing sales at 29,565 units, flat year-on-year. Pune recorded a sharp 56% jump 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.
In Q3 2025, 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%. 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. It also 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.
The Mumbai Metropolitan Region (MMR) and Pune emerged as regional leaders in the real estate market. MMR's stable sales and Pune's significant increase in new launches highlight the robust demand and supply dynamics in these regions. Despite some cities experiencing declines, the overall market remains resilient and balanced.
Frequently Asked Questions
What was the overall trend in housing sales in Q3 2025?
Housing sales across India’s top seven cities fell 9% year-on-year to 97,080 units in Q3 2025. However, the overall sales value increased by 14% to ₹1.52 lakh crore, driven by strong demand for luxury homes.
How did new housing launches perform in Q3 2025?
New housing launches across the top seven cities rose 3% year-on-year to 96,690 units in Q3 2025. Despite this increase, sales continued to outpace new supply, indicating strong demand.
Which cities saw the most significant changes in sales performance?
Chennai recorded a 33% year-on-year increase in sales with 6,010 units, and Kolkata saw a 4% rise with 4,130 units sold. On the negative side, Mumbai Metropolitan Region (MMR) saw a 16% drop, Pune a 13% drop, and NCR an 11% decline.
What segments of the housing market are 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%. Mid-segment homes between ₹40–80 lakh formed 23% of the share, and affordable homes under ₹40 lakh stood at 16%.
How did average housing prices perform in Q3 2025?
Average housing prices across the top seven cities rose 9% year-on-year to ₹9,105 per sq. ft. NCR led with a 24% increase, followed by Bengaluru with a 10% rise.
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