India’s housing market remained steady during the July–September 2025 quarter, with only a marginal 1% year-on-year dip in home sales across the country’s eight major residential markets. According to the latest Real Insight Residential: July–September 2025 report by PropTiger.com, a digital real estate transaction and advisory platform by Aurum PropTech, around 95,547 housing units were sold in the quarter.
While the number of homes sold held largely steady, the total value of sales jumped 14% year-on-year to Rs. 1.52 lakh crore, revealing a striking shift in buyer preference toward higher-end and luxury homes. In other words, fewer homes were sold, but they were worth much more, signaling that India’s housing market is now firmly in a phase of “premiumization.”
The report points to a broader transformation underway. Instead of chasing volume growth, developers and buyers alike are now focused on value-driven, premium properties. This change reflects both the rising purchasing power of homebuyers and developers’ strategic pivot toward the luxury segment.
“India’s residential market is clearly transitioning from a broad-based, volume-led recovery to a more mature and sustainable phase of value-driven growth,” said Onkar Shetye, Executive Director of Aurum PropTech.
He added that the strong performance of the premium segment underscores its resilience and importance as the market’s main growth engine. Favourable economic conditions such as stable interest rates and government policy reforms have further boosted confidence among both buyers and developers.
Shetye also noted that the recent GST reduction on cement has helped developers offset rising input costs, while stable lending rates have kept mortgage demand intact. Looking ahead, he said the upcoming festive quarter will be an important test of whether this momentum can continue, particularly amid affordability challenges in the mid- and lower-income housing segments.
New Supply Slows But Developers Stay Optimistic
The report also found that new housing supply across the top eight cities declined by 5.1% year-on-year, with 87,179 new units launched during the quarter. However, compared to the previous quarter, new launches actually grew 3.6%, suggesting that developers are cautiously optimistic and aligning new projects with shifting buyer demand.
Rather than flooding the market with low- or mid-priced homes, developers are focusing on high-value projects, targeting buyers who are prioritizing location, lifestyle amenities, and long-term investment value over affordability.
Southern Cities Steal the Show
One of the standout trends of the July–September quarter was the emergence of southern and eastern cities as the new growth drivers of India’s housing market.
Chennai led the way with an extraordinary 120.9% year-on-year jump in home sales, while Hyderabad followed closely with a robust 52.7% rise. Both markets benefited from improved infrastructure, growing tech and manufacturing sectors, and relatively affordable property prices compared to western metros.
In contrast, major western markets like the Mumbai Metropolitan Region (MMR) and Pune experienced significant slowdowns, with sales falling 22.2% and 27.9%, respectively.
Despite this dip, MMR continued to dominate the national housing landscape, accounting for 24.4% of total sales in the quarter. It was followed by Hyderabad at 18.5%, Bengaluru at 13.7%, and Pune at 13.6%.
Developer Confidence Returns in Select Markets
On the supply side, the report showed a remarkable rebound in certain regional markets. Kolkata recorded an astounding 387.7% increase in new launches compared to last year, while Chennai’s new supply more than doubled with a 105% rise. Both cities reflect a strong resurgence in developer confidence, driven by rising end-user demand and improved economic conditions.
This renewed activity also indicates a broader geographical diversification in India’s housing market, moving beyond the traditional strongholds of Mumbai and Delhi NCR.
What’s Next for India’s Housing Market
The PropTiger report suggests that India’s housing market is entering a new, more balanced phase—where the focus is on quality over quantity. Buyers are looking for better amenities, branded developments, and sustainable communities rather than simply affordable square footage.
At the same time, affordability challenges remain real, particularly for first-time homebuyers in metro cities. As Shetye pointed out, the next quarter typically buoyed by the festive season that will reveal whether this premium-led growth can coexist with the broader market’s need for accessible housing.
For now, one thing is clear: India’s housing market has matured. The appetite for luxury and lifestyle-driven homes shows no signs of slowing down, and developers are responding by delivering exactly that.