India's Real Estate Market Soars: Premium Homes Drive 52% of Q3 Sales
India's housing market remained robust in Q3 2025, with 87,603 homes sold, a 1% YoY increase. Premium homes, priced above US$ 112,688, now account for 52% of total sales, driving the market's growth.
Real EstatePremium HomesHousing MarketPrice GrowthInventoryReal EstateOct 08, 2025
Mumbai remained the largest market with 24,706 units sold (+2% YoY), contributing 28% of total sales, while Chennai recorded the fastest growth at 12% YoY with 4,617 units, marking its highest post-pandemic sales. Other cities such as NCR (12,955 units) and Bengaluru (14,538 units) maintained steady sales. The report attributes market resilience to easing inflation at 2.07% in August 2025 and a 1% repo rate cut by the RBI, which improved liquidity and supported financing innovations.
Premium housing continues to drive the sector’s upcycle, now in its fifth consecutive year. Homes priced above Rs. 1 crore (US$ 112,688.75) accounted for over half of all sales, with the Rs. 1-2 crore (US$ 112,688-225,377) segment rising 17% YoY and the Rs. 10-20 crore (US$ 1.13-2.25 million) luxury bracket surging 170% YoY, reflecting strong urban demand for larger, higher-quality properties. Despite a 4% YoY increase in unsold inventory to 5.06 lakh units, the market remains balanced, with Quarters to Sell (QTS) at 5.8, or less than 18 months of stock.
Price growth remains robust in NCR, Bengaluru, and Hyderabad at 19%, 15%, and 13% YoY, respectively. Chairman & Managing Director, Knight Frank India, Mr. Shishir Baijal, noted that the market’s momentum underscores evolving buyer aspirations and the continued centrality of premium housing in driving growth.
Frequently Asked Questions
What is driving the growth in India's housing market?
The growth in India's housing market is primarily driven by strong demand for premium homes, which now account for 52% of total sales. Factors like easing inflation and a repo rate cut by the RBI have also contributed to the market's resilience.
Which cities showed the most significant growth in home sales?
Mumbai remained the largest market with 24,706 units sold, while Chennai recorded the fastest growth at 12% YoY with 4,617 units sold, marking its highest post-pandemic sales.
How has the price of homes changed in major markets?
Prices have risen sharply across major markets. The National Capital Region (NCR) saw a 19% increase, Bengaluru 15%, and Hyderabad 13%.
What is the significance of premium homes in the market?
Premium homes, priced above Rs. 1 crore (US$ 112,688), account for over half of all sales. The Rs. 1-2 crore (US$ 112,688-225,377) segment rose 17% YoY, and the Rs. 10-20 crore (US$ 1.13-2.25 million) luxury bracket surged 170% YoY, reflecting strong urban demand for larger, higher-quality properties.
How is the inventory and market balance in Q3 2025?
Despite a 4% YoY increase in unsold inventory to 5.06 lakh units, the market remains balanced, with Quarters to Sell (QTS) at 5.8, or less than 18 months of stock.
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