India's Housing Market Shows Resilience with Steady Sales and Price Increases in Q3 2025

India’s housing market remained stable with steady sales volumes and broad-based price increases across major cities in the September quarter, as demand in higher-value housing segments continued to support overall market activity.

The trend played out across most leading cities, where sales volumes held steady and price growth remained firm through the quarter. The top eight residential markets recorded sales of 87,603 housing units in the third quarter of 2025, up 1% from a year earlier. New launches declined 2% on-year to 88,655 units, according to data from Knight Frank India.

Prices increased across all key markets, led by the National Capital Region (NCR) with a 19% on-year rise, followed by Bengaluru and Hyderabad at 15% and 13%, respectively. Shishir Baijal, CMD of Knight Frank India, noted, “India’s residential market has demonstrated an impressive ability to sustain momentum and the market is now in its fifth year of an upcycle. Consequently, year-on-year growth rate is beginning to rationalize, and we may be entering a prolonged plateau phase. The rate cut of up to 100 basis points, and liquidity support through the simplification of both direct taxes and GST have collectively strengthened end-user confidence.”

The assessment shows that premium housing continued to drive demand through the quarter. Units priced above Rs 1 crore made up 52% of total sales, compared with 48% a year earlier. Within this category, the Rs 1-2 crore segment emerged as the largest by volume, accounting for 28% of total sales and registering a 17% annual rise. Sales in the Rs 5-10 crore range grew 33%, while the Rs 10-20 crore segment recorded a 170% increase on a low base.

Gulam Zia, Senior Executive Director at Knight Frank India, commented, “Premium housing has decisively taken center stage, accounting for more than half of all sales this quarter. The strength of the Rs 1-2 crore segment, now the largest by volume, underscores a structural shift in buyer demand. Even with rising inventory, absorption levels remain stable, reaffirming the market’s ability to adjust and grow within a healthy and sustainable framework.”

Mumbai continued to record the highest number of transactions with 24,706 units sold, accounting for 28% of total sales across the top eight cities. Chennai registered the strongest on-year growth in sales at 12%, recording 4,617 units, its highest level since the pandemic. Bengaluru and NCR remained stable, while Pune saw an 8% annual decline in sales.

Across the January-September period, year-to-date sales stood at 2,57,804 units, marginally lower by 1% from the same period last year. The supply pipeline during the quarter was constrained by reduced launches in Mumbai and NCR, both declining 19% year-on-year, even as Chennai and Bengaluru registered strong additions of 44% and 28%, respectively.

The broader macroeconomic environment provided stability through the quarter, with easing inflation and the Reserve Bank of India revising the growth forecast for 2025-26 to 6.8%. The repo rate witnessed a 100 basis point reduction compared to the end of 2024, supporting liquidity and housing sentiment.