Pune and Mumbai Lead India’s Housing Boom: The Shift to Smaller Flats
Magicbricks' PropIndex report for July–September 2025 reveals a significant shift in India's housing market, with increasing demand for smaller, more affordable homes in key cities like Pune and Mumbai.
Real EstateHousing MarketSmaller FlatsAffordabilityInfrastructureReal Estate PuneOct 06, 2025
While the overall supply grew by just 1% QoQ, it experienced a 4.5% decline year-over-year (YoY). Prices, however, continued their upward trend. Cities such as Pune, Mumbai, and Greater Noida recorded the sharpest annual price appreciation, with Pune leading the pack at +41.4% YoY, followed by Mumbai at +29.6% YoY, and Greater Noida at +27.3% YoY. This price surge is driven by resilient demand and a limited number of new launches. Interestingly, under-construction (UC) homes have become more expensive than ready-to-move (RM) homes. In Pune, UC prices rose by +29.1% QoQ, compared to +15.8% for RM homes.
Regionally, the Delhi NCR market saw a significant boost, with demand in Delhi surging by +10.3% QoQ. Noida and Greater Noida also saw increases of +6.3% QoQ and +3.8% QoQ, respectively. These gains are attributed to large-scale infrastructure projects like the Dwarka Expressway and Regional Rapid Transit System (RRTS) corridors. The Mumbai Metropolitan Region (MMR) continued to see strong buyer activity despite supply contractions, with Mumbai experiencing a -9.7% QoQ decline and Navi Mumbai a -10.7% QoQ decline. This supply crunch has fueled significant price momentum in the region.
In the South, Bengaluru maintained its growth trajectory, with demand increasing by +5.9% QoQ and prices rising by +3.9% QoQ. Chennai, however, saw a -5.4% QoQ dip in demand, although fresh launches lifted supply by +1.9% QoQ.
Sudhir Pai, CEO of Magicbricks, commented, “The July–September 2025 quarter reinforced a fundamental market shift towards compact and mid-segment housing. While affordability constraints are shaping buyer behavior, infrastructure-led optimism and evolving consumer aspirations continue to fuel demand across key micro-markets. Developers who align their product offerings with affordability and lifestyle needs will define the next phase of sustainable housing growth.”
The PropIndex Q3 2025 findings reaffirm that India’s residential market is entering a phase of measured growth, driven by affordability, infrastructure expansion, and evolving buyer aspirations. As compact homes gain popularity and under-construction projects attract premiums, the balance between demand and supply will be crucial in sustaining momentum. Looking ahead, housing activity is expected to be driven less by speculative trends and more by pragmatic, end-user decisions, positioning real estate as a stable and enduring investment class.
Magicbricks is India’s No.1 property site, connecting buyers and sellers of property in a transparent manner. With over 17 years of experience and deep research-based knowledge, Magicbricks has become a full-stack service provider for all real estate needs, offering services including home loans, interiors, and expert advice. The platform has a monthly traffic exceeding 2 crores and an active base of over 15 lakh property listings. Magicbricks also presents a repertoire of insight-driven platforms like MBTV, India’s leading online real estate YouTube channel, and other proprietary tools to help home buyers access all information related to price trends, forecasts, locality reviews, and more.
Frequently Asked Questions
What is the PropIndex report by Magicbricks?
The PropIndex report by Magicbricks is a quarterly analysis of the Indian real estate market, providing insights into trends, demand, supply, and pricing in key cities and regions.
Why are homebuyers shifting to smaller flats?
Homebuyers are shifting to smaller flats primarily due to affordability constraints and a growing preference for compact and mid-segment housing that aligns with lifestyle needs and budget constraints.
Which cities saw the highest price appreciation in the July–September 2025 quarter?
Pune, Mumbai, and Greater Noida recorded the highest price appreciation in the July–September 2025 quarter, with Pune leading at +41.4% YoY, followed by Mumbai at +29.6% YoY, and Greater Noida at +27.3% YoY.
What role do infrastructure projects play in the housing market?
Infrastructure projects, such as the Dwarka Expressway and RRTS corridors, play a crucial role in boosting demand and driving price appreciation in key regions by improving connectivity and enhancing the quality of life.
What is the future outlook for the Indian housing market?
The future outlook for the Indian housing market is positive, with a focus on sustainable growth driven by affordability, infrastructure expansion, and pragmatic, end-user decisions rather than speculative trends.
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