Southern Cities Lead the Charge in India's Real Estate Market
Hyderabad, Bengaluru, and Chennai have seen a significant rise in housing sales, defying the overall decline in major Indian cities. Stable interest rates and policy reforms are driving this growth.
Real EstateSouthern CitiesHousing SalesInterest RatesPolicy ReformsReal EstateOct 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 have been successful in attracting a diverse range of buyers, including first-time homebuyers and investors. The stability in interest rates has played a crucial role in boosting confidence among potential buyers. Additionally, the government's initiatives, such as the reduction in GST on cement, have further reduced the cost of construction, making it more affordable for developers to offer competitive pricing.
The real estate market in these cities has also benefited from a strong economic environment, with a growing number of IT and tech companies setting up operations in the region. This has led to an increase in employment opportunities, which in turn has fueled the demand for residential properties. The availability of quality infrastructure, such as well-connected transport networks and modern amenities, has further enhanced the appeal of these cities.
Despite the positive trends, there are concerns about maintaining the momentum in the long term. The real estate sector is highly sensitive to economic fluctuations, and any significant changes in interest rates or government policies could impact the market. Developers and policymakers are working together to ensure that the market remains stable and continues to attract investment.
In conclusion, the robust performance of the real estate market in southern cities like Hyderabad, Bengaluru, and Chennai is a testament to the region's economic resilience and the effectiveness of government policies. As the festive season approaches, the market is expected to see further growth, driven by increased consumer confidence and favorable economic conditions.
Frequently Asked Questions
Which southern cities are leading in real estate sales?
Hyderabad, Bengaluru, and Chennai are the leading southern cities in India's real estate market.
What factors are driving the growth in these cities?
Stable interest rates, proactive policy reforms like the GST reduction on cement, and a strong economic environment are key factors driving the growth.
How much did housing sales increase in these cities?
Hyderabad saw a 53% increase with 17,658 units sold, Bengaluru saw an 18% increase with 13,124 units sold, and Chennai saw sales more than double to 7,862 units.
What challenges does the real estate market face?
Maintaining growth and affordability, especially in mid-level housing, and the sensitivity of the market to economic fluctuations and policy changes are key challenges.
What is the outlook for the real estate market in these cities?
The outlook is positive, with expectations of further growth during the festive season, driven by increased consumer confidence and favorable economic conditions.
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