India's Housing Market Sees Premium Surge Despite Sales Dip
While sales in India's top residential markets have dipped, the value of transactions has surged, indicating a strong demand for premium residences.
Indian Housing MarketPremium ResidencesReal EstateProptigerLuxury HousingReal Estate NewsOct 15, 2025
The report stated that sales across India’s top residential markets saw a 1 per cent year-on-year (Y-o-Y) decline in Q3 CY2025 (July to September), with over 95,547 units sold during the quarter, compared to 96,544 a year earlier.
Despite this drop in sales, the total value of transactions has surged 14 per cent on-year to Rs 1.52 lakh crore, indicating a strong luxury housing demand.
“The Indian residential market is clearly transitioning from a broad-based, volume-led recovery to a more mature and sustainable phase of value-driven growth,” said Onkar Shetye, executive director for Aurum PropTech. He added that the quarter’s performance underscores the remarkable resilience of the premium segment, which continues to be the market’s primary growth engine, supported by stable macroeconomic fundamentals and strong buyer sentiment.
Among the major markets, Pune, Mumbai Metropolitan Region (MMR) and Delhi-NCR saw their residential sales dipping significantly in Q3. While Pune saw a 28 per cent Y-o-Y drop from 18,004 units in Q3 2024 to 12,990 units in this year, MMR’s housing sales declined by 22.3 per cent on-year drop. Similarly, Delhi NCR’s residential sales fell by 21.2 per cent Y-o-Y to 7,961 units this quarter compared to 10,098 units sold in the same period last year.
The sales slump, however, saw a strong regional divergence, with southern and eastern markets emerging as growth drivers for overall housing sales numbers. “While Chennai sales jumped 120.9 per cent Y-o-Y to 7,862 units in Q3, Hyderabad rose 52.7 per cent to 17,658 units,” the report adds.
In line with overall housing sales, new supply across the top eight cities also fell by 5.1 per cent annually, with 91,807 units launched in Q3 2025 compared to 91,863 units in the same quarter last year. However, there was a 3.6 per cent quarter-on-quarter (Q-o-Q) growth in launches from the 84,138 units in Q2 2025, signaling cautious optimism among developers.
“This trend suggests that developers are strategically launching higher value projects to align with the current buyer demand, which is heavily skewed towards the premium and luxury segments,” the report added.
Frequently Asked Questions
What is the current trend in India's housing market?
The current trend in India's housing market is a shift towards premium and luxury residences. Despite a slight decline in overall sales, the value of transactions has surged, indicating strong demand for high-value properties.
Which regions are seeing a decline in housing sales?
Pune, Mumbai Metropolitan Region (MMR), and Delhi-NCR are seeing a significant decline in housing sales. Pune experienced a 28 per cent Y-o-Y drop, MMR saw a 22.3 per cent decline, and Delhi-NCR had a 21.2 per cent drop in sales.
Which regions are driving growth in the housing market?
Southern and eastern markets are emerging as growth drivers. Chennai saw a 120.9 per cent Y-o-Y increase in sales, and Hyderabad experienced a 52.7 per cent rise in housing sales.
What is the trend in new housing supply?
New housing supply across the top eight cities fell by 5.1 per cent annually. However, there was a 3.6 per cent quarter-on-quarter (Q-o-Q) growth in launches, indicating cautious optimism among developers who are focusing on higher value projects.
What factors are driving the premium segment's growth?
The growth in the premium segment is driven by stable macroeconomic fundamentals and strong buyer sentiment. Developers are strategically launching higher value projects to meet the current demand for premium and luxury residences.
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