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India’s housing market continues to defy gravity. Property prices across the country’s top eight cities rose between 7% and 19% in the July–September 2025 quarter, reflecting sustained end-user demand, rising input costs, and limited availability of ready-to-move-in homes.
According to the latest Real Insight Residential: July–September 2025 report by PropTiger.com, a part of Aurum PropTech, the upward trend was led by Delhi-NCR, Bengaluru, and Hyderabad, all of which posted double-digit growth in average property prices.
Delhi-NCR saw the sharpest increase, with a 19% rise in average prices compared to last year and a 9.8% increase over the previous quarter. The region’s weighted average price climbed from Rs. 7,479 per sq. ft. in Q3 2024 to Rs. 8,900 per sq. ft. in Q3 2025. Analysts attribute this surge to strong demand for luxury homes and the region’s ongoing infrastructure upgrades, including new expressways and metro extensions.
Bengaluru followed closely with a 15% year-on-year jump in housing prices and an impressive 12.6% quarter-on-quarter growth. Average prices rose from Rs. 7,713 per sq. ft. in Q3 2024 to Rs. 8,870 per sq. ft. this year. Hyderabad too continued its strong run, recording a 13% annual rise and a 4.6% quarterly increase, taking prices to Rs. 7,750 per sq. ft.
Other major property markets, including Mumbai Metropolitan Region (MMR), Pune, Chennai, Kolkata, and Ahmedabad, registered steady single-digit growth, reflecting broad-based resilience across the sector. “Price appreciation is no longer limited to a few metro cities,” the report noted. “It reflects both developer confidence and buyer readiness to invest in appreciating assets.”
Sales and Value Trends
While prices surged, sales volumes showed signs of consolidation. Across the top eight residential markets, 95,547 homes were sold during Q3 2025, a marginal 1% decline from the same period last year and a 2.2% dip compared to the previous quarter.
Yet the total value of properties sold told a different story. Despite fewer units changing hands, the overall transaction value jumped 14% year-on-year to Rs. 1.52 lakh crore. This clearly signals a shift toward premium and luxury housing, as more buyers opt for high-value homes backed by better amenities and locations.
“Premiumization has become a defining trend in India’s housing market,” the report observed. “Developers are responding to the appetite for larger, better-designed homes with top-end features.”
New Launches: Fewer Homes, Bigger Bets
New housing supply across the top eight cities remained largely flat, with 91,807 new units launched, a marginal 0.1% decline from the same quarter last year. However, compared to the April–June 2025 quarter, new supply rose by 9.1%, indicating renewed optimism among developers.
Interestingly, the composition of new launches highlights a shift in strategy. Developers are focusing on high-value projects catering to upper-middle-class and affluent buyers rather than mass-market housing. The western and southern markets led the way: MMR accounted for 26.9% of all new launches, Pune for 18.7%, and Hyderabad for 13.6%. Together, these three regions contributed nearly 60% of the new supply introduced in the quarter.
A Market in Transition
The top eight cities: Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR (including Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), MMR (Mumbai, Navi Mumbai, and Thane), and Pune, collectively form the backbone of India’s residential market.
Experts say the sustained rise in prices across these markets suggests continued buyer confidence, despite higher home loan rates and rising construction costs. However, with inventory levels tightening and affordability under pressure, market watchers expect developers to pace future launches carefully.
In essence, India’s housing market is maturing into a value-driven ecosystem where fewer but higher-quality homes are being built, and buyers are willing to pay a premium for them.
The real question now is whether this steady climb in prices can continue through 2026, or whether affordability concerns will force the market to pause for breath.
