India's Real Estate Market Surges: Premium Homes Dominate Q3 Sales
India's housing market showed resilience in Q3 2025, with 87,603 homes sold across the top eight cities, a 1% increase year-on-year. Premium homes, priced above ₹1 crore, now account for 52% of total sales, driven by strong demand and favorable economic conditions.
Real EstateHousing MarketPremium HomesQ3 SalesIndiaReal Estate NewsOct 07, 2025
While new launches dipped 2% YoY to 88,655 units, prices climbed across markets. Notably, NCR saw a 19% increase, Bengaluru 15%, and Hyderabad 13%.
Mumbai continued to lead with 24,706 units sold (+2% YoY), accounting for 28% of the overall sales. Chennai recorded the strongest growth at 12% YoY with 4,617 units, its highest sales since the pandemic. Other major markets like NCR (12,955 units) and Bengaluru (14,538 units) remained steady, while Pune was the only laggard with sales declining by 8% YoY.
In Q3 2025, prices continued to rise even as developers introduced financing options, including bank tie-ups and subvention schemes, to stimulate sales. The housing market's resilience is attributed to a favorable macroeconomic environment. With inflation easing to 2.07% in August 2025 (down from 3.65% a year ago) and the RBI lowering the repo rate by 1% since end-2024, liquidity conditions have improved.
India’s real estate upcycle entered its fifth consecutive year, driven by strong end-user confidence and financing innovations. Homes priced above ₹1 crore now account for 52% of all sales, up from 46% last year, with the ₹1–2 crore bracket leading growth at 17% YoY. By contrast, homes priced below ₹1 crore saw a decline, as demand shifted toward larger, higher-quality properties. Sales in the ₹10–20 crore luxury bracket surged 170% YoY, reflecting the rising appetite for ultra-premium homes in metros.
India’s residential market in Q3 2025 has demonstrated an impressive ability to sustain momentum. The market is now in its fifth year of an upcycle, with the surge in demand for premium housing reflecting the evolving aspirations of urban buyers for larger and higher-quality homes, said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
City-wise highlights:
- Mumbai: 24,706 units sold (+2% YoY), contributing 28% to total sales.
- Chennai: Fastest-growing market with 12% YoY rise; 4,617 units sold.
- Hyderabad: Recorded 9,601 units sold (+5% YoY).
- NCR: Stable at 12,955 units sold; strongest price growth at 19%.
- Bengaluru: 14,538 units sold, maintaining steady volumes.
- Pune: Only major city to report decline, down 8% YoY to 12,118 units.
Total sales: 87,603 units (+1% YoY)
YTD (Jan–Sep 2025): 2.57 lakh units (-1% YoY)
Despite a 4% YoY rise in unsold inventory to 5.06 lakh units, market health remains strong. The Quarters to Sell (QTS) metric stood steady at 5.8 quarters, or less than 18 months of stock — indicating balanced market conditions. However, unsold inventory was concentrated in higher ticket-size categories, particularly ₹2–5 crore and above segments.
Premium housing has decisively taken centre stage, accounting for more than half of all sales this quarter, said Gulam Zia, Senior Executive Director – Valuation, Advisory and Research, Knight Frank India. The strength of the ₹1–2 crore segment underscores a structural shift in buyer demand, he added. The price growth has been strong in NCR, Bengaluru, and Hyderabad at 19%, 15%, and 13% YoY respectively.
Frequently Asked Questions
What is the overall growth of home sales in India in Q3 2025?
Home sales in India in Q3 2025 grew by 1% year-on-year, with 87,603 homes sold across the top eight cities.
Which segment of the housing market saw the most significant growth?
Homes priced above ₹1 crore saw the most significant growth, accounting for 52% of total sales, up from 46% last year.
How did Mumbai perform in Q3 2025?
Mumbai continued to lead with 24,706 units sold, a 2% increase year-on-year, contributing 28% to the total sales.
What factors contributed to the resilience of India's housing market?
The resilience of India's housing market is attributed to a favorable macroeconomic environment, including easing inflation and improved liquidity conditions due to the RBI's repo rate cuts.
What is the current Quarters to Sell (QTS) metric for the housing market?
The Quarters to Sell (QTS) metric stood steady at 5.8 quarters, or less than 18 months of stock, indicating balanced market conditions.
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