India's Housing Market Steady: Luxury Demand Surges in Q3 2025
India’s housing market showed resilience with 87,603 units sold in Q3 2025, marking a 1% year-on-year increase. The demand for premium homes has surged, particularly in the Rs 1–2 crore range.
Real EstateHousing MarketLuxury HomesProperty SalesIndiaReal EstateOct 17, 2025
Properties priced above Rs 1 crore formed 52% of total sales, up from 48% a year ago, indicating a clear shift toward premium housing. Within this segment, homes in the Rs 1–2 crore range made up 28% of all transactions, while sales of homes in the Rs 10–20 crore range grew by 170% on a low base.
Among India’s key cities, Chennai recorded the highest year-on-year growth at 12%, followed by Hyderabad (+6%) and Bengaluru (+4%). In comparison, Mumbai saw a 2% year-on-year increase, while the National Capital Region (NCR) and Pune remained largely stable.
Unsold housing stock across the top cities rose by 4% year-on-year to about 5.06 lakh units, reflecting steady absorption levels. The quarters-to-sell (QTS) ratio stood at 5.8 quarters, indicating less than 18 months of supply at the current sales pace.
The Indian housing market is now in its fifth consecutive year of expansion, showing signs of stability after rapid post-pandemic growth. Experts attribute this resilience to lower interest rates, steady inflation, and stronger buyer sentiment. The market is entering a phase of sustainable growth, with a focus on quality and value.
Knight Frank India, a leading real estate consultancy, has been instrumental in providing insights and data on the Indian real estate market. Their reports are widely referenced by industry stakeholders, policymakers, and investors to understand market trends and make informed decisions. The company’s expertise in market analysis and forecasting has helped shape the real estate landscape in India.
Frequently Asked Questions
What is the year-on-year growth in home sales in India for Q3 2025?
Home sales in India for Q3 2025 showed a 1% year-on-year growth, with 87,603 units sold.
Which segment of the housing market saw the most significant increase in sales?
The premium segment, particularly homes priced above Rs 1 crore, saw the most significant increase, forming 52% of total sales, up from 48% a year ago.
Which cities recorded the highest year-on-year growth in home sales?
Chennai recorded the highest year-on-year growth at 12%, followed by Hyderabad (+6%) and Bengaluru (+4%).
What is the current quarters-to-sell (QTS) ratio in the Indian housing market?
The quarters-to-sell (QTS) ratio currently stands at 5.8 quarters, indicating less than 18 months of supply at the current sales pace.
What factors are contributing to the resilience of the Indian housing market?
Lower interest rates, steady inflation, and stronger buyer sentiment are the key factors contributing to the resilience of the Indian housing market.
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