India's Housing Market Shows Strong Growth in August, Despite Affordability Concerns
India's housing market witnessed a 23% YoY growth in sales by value in August 2025, driven by strong demand in key cities. However, affordability remains a significant concern.
Housing MarketReal EstateNuvamaProperty PricesInventoryReal Estate NewsSep 24, 2025
Year-to-date (CY25) absorption by value rose 11 per cent (YoY), supported by strong demand in the National Capital Region (NCR), which saw a 55 per cent (YoY) increase. Bengaluru, Chennai, and Kolkata also recorded growth of 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, with increases of 19 to 20 per cent, followed by Bengaluru and Kolkata, which saw growth of 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 growth in housing sales by value in August 2025?
Housing sales by value grew by 23 per cent year-on-year (YoY) in August 2025.
Which cities saw the highest growth in housing sales?
The National Capital Region (NCR) saw the highest growth with a 55 per cent increase in housing sales, followed by Bengaluru, Chennai, and Kolkata with growth of 24 to 30 per cent each.
How did the 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 trend in property prices across major cities?
Property prices increased across all major cities in August 2025. The sharpest gains were recorded in MMR and Chennai, with increases of 19 to 20 per cent, followed by Bengaluru and Kolkata with growth of 11-15 per cent each.
What are the main concerns for the housing market moving forward?
The main concerns for the housing market include affordability issues due to surging house prices and limited mid-income housing availability, as well as potential volatility in the market.
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