India's Residential Real Estate Market Surges 14% in Q3 2025
Despite global economic challenges, India's residential property sales value increased by 14% year-on-year in Q3 2025, with the Mumbai Metropolitan Region (MMR) leading the market.
Real EstateProperty SalesMumbaiChennaiKolkataReal Estate MumbaiSep 25, 2025
The Indian real estate market’s latest performance is significant as it comes at a time when most global economies are grappling with interest rate volatility, slowing consumption patterns, and capital allocation struggles. Domestically, a confluence of income growth, rapid urbanisation, and aspirational ownership trends propped up transaction values, even when the number of actual housing units sold dropped.
In Q3 2025, around 97,080 units were sold across the top seven Indian cities, compared with 1.07 lakh units in Q3 2024, marking a 9 percent annual decline in sales volumes. This divergence, where value surges even as volume slips, points to an evolving buyer profile where mid-to-premium segment demand is outpacing mass-market affordability. Higher-priced homes are increasingly driving aggregate values, suggesting a market skew toward wealthier segments.
The sales distribution provides an important window into the dynamics of regional real estate activity. The Mumbai Metropolitan Region (MMR) retained its position as the largest housing market, clocking approximately 30,260 units sold in Q3 2025. Its dominance is not surprising, given Mumbai’s dual identity as both a financial hub and a magnet for aspirational buyers.
Pune followed with 16,620 units sold, reinforcing the western region’s outsized role in India’s residential demand. Together, MMR and Pune alone contributed 48 percent of total sales across the top seven cities, underlining the concentration of demand in western corridors.
Notably, every major city reported yearly declines in housing sales except for two outliers—Chennai and Kolkata. Chennai witnessed a remarkable 33 percent year-on-year increase in sales, while Kolkata registered a more modest 4 percent annual gain. This variance highlights the uneven nature of demand across India, often driven by local dynamics ranging from pricing strategies to infrastructural momentum.
The market’s dual narrative—value growth alongside declining unit sales—signals persistent affordability challenges. With urban housing prices escalating faster than income growth at entry levels, first-time buyers appear increasingly sidelined. Developers, in turn, have been focusing launches more toward higher-ticket projects, aligning supply with consumers who possess greater purchasing power.
This skew creates vulnerabilities. If macroeconomic uncertainties deepen or credit conditions tighten, the very premium buyers sustaining value growth could turn cautious. Moreover, the 9 percent dip in housing volumes points to unmet demand potential in the affordable and mid-income categories, a segment critical for long-term real estate stability.
For investors, India’s Q3 housing market performance reinforces the resilience of urban property as a stable store of value, even in the face of global turbulence. However, the skew toward premium properties and falling volumes calls for nuanced strategies.
Developers may need to revisit supply allocations toward affordable homes to tap a mass segment that remains under-served.
Investors should evaluate regional divergence carefully, with Chennai and Kolkata offering counter-cyclical opportunities amid weaker showings elsewhere.
Policy makers could address affordability constraints to ensure balance between aspirational demand at the top and broader market inclusivity.
India’s housing story remains one of resilience, ambition, and evolving buyer patterns. The robust sales value growth illustrates how deep-rooted the aspirations of homeownership run in Indian society, while volume declines remind stakeholders of structural stresses that need attention for sustained expansion.
Frequently Asked Questions
What was the percentage increase in residential property sales value in Q3 2025 compared to Q3 2024?
The residential property sales value increased by 14 percent year-on-year in Q3 2025.
Which region is the largest housing market in India, and how many units were sold there in Q3 2025?
The Mumbai Metropolitan Region (MMR) is the largest housing market in India, and it sold approximately 30,260 units in Q3 2025.
What cities saw an increase in housing sales in Q3 2025 compared to the previous year?
Chennai and Kolkata saw increases in housing sales in Q3 2025, with Chennai witnessing a 33 percent increase and Kolkata a 4 percent increase.
What factors are contributing to the decline in sales volumes despite the increase in sales value?
The decline in sales volumes is driven by higher-priced homes outpacing mass-market affordability, leading to a market skew toward wealthier segments.
What are some strategic insights for real estate investors and developers in India?
Investors and developers should focus on affordable homes to tap under-served segments, evaluate regional divergence, and consider policy changes to address affordability constraints.
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