Property Prices Surge 7-19% in Top 8 Markets in Q3 2025: Premiumisation Trend Dominates Real Estate
India’s top eight housing markets experienced a robust 7 to 19 per cent increase in property prices during the July–September quarter (Q3 2025). This surge is primarily driven by strong end-user demand in the premium segment, along with elevated input costs and a limited supply of quality, ready-to-move-in inventory, according to a report by Proptiger, a digital real estate transaction and advisory platform.
Among the top eight markets, Delhi-NCR recorded the steepest year-on-year average residential price appreciation of 19 per cent. Property prices in Delhi-NCR rose from Rs 7,479 per sq. ft. in Q3 2024 to Rs 8,900 per sq. ft. in Q3 2025. Bengaluru followed closely with a 15 per cent on-year rise, from Rs 7,713 per sq. ft. to Rs 8,870 per sq. ft. Hyderabad saw a 13 per cent increase in property prices to Rs 7,750 per sq. ft. from Rs 6,858 per sq. ft. during the same period. In the Mumbai Metropolitan Region (MMR), average prices rose 7 per cent to Rs 13,250 per sq. ft. from Rs 12,383 per sq. ft. last year.
Other key markets, including Ahmedabad, Chennai, Kolkata, and Pune, also reported moderate price gains, contributing to the overall upward trend in the real estate sector.
The premiumisation trend in housing is being driven by several factors. Ashok Kapur, chairman of Krishna Group and Krisumi Corporation, noted that the sharp rise in property prices across markets such as Delhi-NCR reflects strong and sustained demand for quality homes. “Rising disposable incomes, supported by affordable home loan rates and GST reforms, have strengthened purchasing power,” he added.
Despite a marginal 1 per cent dip in home sales to 95,547 units this quarter, the total value of properties sold surged 14 per cent year-on-year to Rs 1.52 trillion. This significant increase in the total value of properties sold is a clear indication of a market shift toward premiumisation.
Developers are responding to changing buyer preferences by strategically launching higher-value projects. About 91,807 units were launched across the top eight markets, marking a slight 0.1 per cent year-on-year dip. However, launches increased 9.1 per cent sequentially, signaling cautious optimism among developers. This trend suggests that developers are focusing on aligning with current buyer demand, which is heavily skewed towards premium and luxury segments.
In summary, the real estate market in India's top eight cities is experiencing a significant surge in property prices, driven by a strong demand for premium and luxury housing. Developers are adapting by launching higher-value projects to meet the evolving preferences of end-users.
