India's Housing Market Shows Strong Growth in August; Affordability Challenges Persist
India's housing market saw a significant 23% increase in sales by value year-over-year (YoY) in August 2025, driven by strong demand in key cities. However, affordability remains a growing concern.
Housing MarketReal EstateNuvamaAffordabilitySales GrowthReal Estate PuneSep 24, 2025
Year-to-date (CY25) absorption by value rose 11 per cent (YoY), supported by strong demand in the National Capital Region, up 55 per cent (YoY), Bengaluru, Chennai, and Kolkata, which were up 24 to 30 per cent (YoY) each. However, sales in Hyderabad fell 11 per cent (YoY), while Pune and Mumbai Metropolitan Region (MMR) saw a decline of 6-8 per cent each.
On the supply side, launches by value were flat (YoY) and down 3 per cent MoM in August 2025. By volume, launches rose 6 per cent YoY and 4 per cent MoM. Year-to-date, supply by value increased 4 per cent YoY, largely led by southern cities which recorded a 32 to 44 per cent jump in new project launches. In contrast, supply in MMR and Pune dipped 18-27 per cent YoY.
Inventory levels improved marginally with unsold stock declining to 17 months in August from 18 months in July and a year ago. The NCR and Pune emerged as the best markets with just 10 and 13 months of inventory, respectively, while Hyderabad remained elevated at 26 months.
Prices increased across all major cities in August on a YoY basis. The sharpest gains were recorded in MMR and Chennai, 19 to 20 per cent, followed by Bengaluru and Kolkata, 11-15 per cent each. Other cities, including Pune, NCR, and Hyderabad, saw moderate increases of 4-8 per cent.
The report noted that premiumisation remains a defining trend, as growth in sales value outpaced growth in volumes. The report also cautioned that affordability is becoming a critical concern amid surging house prices and limited mid-income housing availability. Despite listed developers posting a 19 per cent YoY rise in pre-sales in FY25, the Nifty Realty Index fell about 5 per cent, reflecting investor concerns over weakening affordability and slowing growth.
Going forward, Nuvama expects volatility to persist. 'We believe volatility shall persist, and reckon stocks shall continue to be range-bound with downside protected by falling mortgage rates even as the upside is capped by valuation/volume growth concerns,' the report said.
Frequently Asked Questions
What was the percentage increase in housing sales by value in August 2025 compared to the previous year?
Housing sales by value increased by 23 per cent year-on-year (YoY) in August 2025.
Which cities saw a decline in housing sales in August 2025?
Hyderabad, Pune, and Mumbai Metropolitan Region (MMR) saw a decline in housing sales in August 2025.
How did inventory levels change in August 2025?
Inventory levels improved marginally, with unsold stock declining to 17 months in August from 18 months in July and a year ago.
What is the primary trend in the housing market according to the Nuvama report?
The primary trend is premiumisation, where growth in sales value outpaces growth in volumes.
What are the main concerns for the housing market moving forward?
The main concerns are affordability issues due to surging house prices and limited mid-income housing availability, as well as potential volatility in the stock market.
Related News Articles
Luxury Redefined: Ceratec Group Unveils Presidential Towers in Ravet, Pune
Discover the epitome of luxury living with Ceratec Group's latest project, Presidential Towers, offering 2 and 3 BHK homes in the heart of Ravet, Pune.
Rexas Finance (RXS) Price Forecast: Will It Be a Top Performer in 2025?
Rexas Finance (RXS) is making waves in the financial sector with its innovative approach to asset management. From real estate to art and goods, RXS offers a user-friendly interface for seamless asset trading and management. This article explores the pote
Government Hikes: Ordinary Citizens Bear the Brunt in Karnataka
With a series of tax and price hikes, the Karnataka government is placing a significant financial burden on ordinary citizens. From fuel and liquor to milk and water, the costs are rising, while the government contemplates more increases in property tax,
Port Sector Development: Key Focus in My Third Term, Vadhavan Port Underway
In a significant push towards infrastructure development, the port sector has emerged as a key focus area in my third term. The work on the Vadhavan port has already begun, marking a crucial milestone in this initiative.
Women Lead the Charge in India's Real Estate Market
Women investors are increasingly making their mark in both residential and commercial real estate in India, shattering traditional gender barriers and driving market growth.
Housing Loans Reach ₹33.53 Trillion in Q2FY25: NHB
The National Housing Bank (NHB) reports that housing loans outstanding have reached ₹33.53 trillion in the second quarter of FY25, signaling a promising outlook for the housing sector.