Southern Cities Lead India's Real Estate Surge
Hyderabad, Bengaluru, and Chennai have seen a significant 47% increase in housing sales during the July-September quarter, driving the southern real estate market.
Real EstateHousing SalesSouthern CitiesProperty MarketPolicy ReformsReal Estate NewsOct 20, 2025
In a notable rise, Hyderabad's housing sector grew by 53%, totaling 17,658 units sold, while Bengaluru saw an 18% increase with 13,124 units sold. Chennai demonstrated the most significant growth, with sales more than doubling to 7,862 units during this period, illustrating a robust demand in the southern residential property segment.
PropTiger, recently acquired by Aurum PropTech Ltd, attributes this growth to stable interest rates and proactive policy reforms such as the GST reduction on cement. Executive Director Onkar Shetye expressed optimism regarding the upcoming festive season, emphasizing the challenges of maintaining growth and affordability, especially in mid-level housing.
The southern cities' real estate boom can be attributed to several factors. Hyderabad, known for its IT and pharmaceutical sectors, has seen a steady influx of professionals, driving the demand for residential properties. Similarly, Bengaluru, often referred to as the 'Silicon Valley of India,' continues to attract tech giants and startups, leading to a surge in housing needs. Chennai, with its strong manufacturing and healthcare sectors, has also seen a significant increase in property purchases.
This growth is not just limited to the primary housing market. The rental market in these cities has also seen a boost, with many professionals and students opting for rented accommodations. The availability of affordable and well-connected housing options has further fueled this trend.
However, the real estate sector faces several challenges. Maintaining growth and affordability, especially in mid-level housing, remains a significant concern. The government's proactive measures, such as the GST reduction on cement, have helped to some extent, but more needs to be done to ensure sustainable growth.
In conclusion, the southern cities of Hyderabad, Bengaluru, and Chennai are leading the charge in India's real estate market, driven by a combination of stable economic conditions, proactive policy reforms, and a growing demand for residential properties. The future looks promising, but stakeholders must continue to work together to address the challenges and ensure long-term sustainability in the sector.
Frequently Asked Questions
Which cities are leading the real estate growth in India?
Hyderabad, Bengaluru, and Chennai are leading the real estate growth in India, with a significant 47% increase in housing sales during the July-September quarter.
What factors are driving the growth in these cities?
The growth is driven by stable interest rates, proactive policy reforms such as the GST reduction on cement, and a steady influx of professionals in sectors like IT, pharmaceuticals, and manufacturing.
How has Chennai's real estate market performed?
Chennai has seen the most significant growth, with housing sales more than doubling to 7,862 units during the July-September period.
What challenges does the real estate sector face?
The sector faces challenges in maintaining growth and affordability, especially in mid-level housing, and ensuring sustainable development.
What role has the government played in supporting the real estate market?
The government has played a role through proactive measures like the GST reduction on cement, which has helped to some extent in driving the growth in the real estate sector.
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