India’s top eight housing markets see steady Q3 sales of 87,603 units; NCR leads price growth at 19%

Over half of housing sales in premium segment; Chennai records highest sales growth at 12% YoY; NCR tops price rise at 19% followed by Bengaluru at 15%: Report

Housing market sales across India’s top eight cities remained steady in Q3 2025, with a total of 87,603 residential units sold, a 1% year-on-year (YoY) increase. Prices rose across all major markets with NCR leading price growth with a 19% YoY increase, followed by Bengaluru (+15%), Hyderabad (+13%), and Mumbai (+7%), according to a report by Knight Frank released on October 7.

Despite stable housing sales, prices rose across all major markets with NCR leading price growth with a 19% YoY increase, a report by Knight Frank has said. (Photo for representational purposes only),(PTI)

Mumbai remained the largest market, with 24,706 units sold (+2% YoY), accounting for 28% of overall sales. Chennai saw the strongest growth in sales, rising 12% YoY to 4,617 units, its highest quarterly sales since the pandemic. Other key markets, including NCR (12,955 units) and Bengaluru (14,538 units), remained stable, while Pune was the only market to witness a decline, with sales falling 8% YoY.

New launches across the top eight markets totaled 88,655 units in Q3 2025, marking a slight 2% YoY decline. Chennai (+44% YoY) and Bengaluru (+28% YoY) led growth in new supply, while significant declines in Mumbai and NCR (-19% YoY each) constrained overall additions.

The macroeconomic backdrop provided stability with inflation easing to 2.07% in August 2025 from 3.65% a year ago. The RBI raised its FY 2026 GDP forecast to 6.8%, while the repo rate stood 1% lower compared to end-2024, boosting liquidity and sentiment in the real estate sector.

Strong demand for premium housing supported healthy price growth across markets. Market activity continues to be concentrated at the top end of the market while momentum persistently slid in ticket sizes under ₹1 crore.

Homes priced above ₹1 crore now account for 52% of all sales, up from 46% last year, with the ₹1–2 crore segment leading growth at 17% YoY. Demand for properties under ₹1 crore has declined as buyers shift toward larger, higher-quality homes. Notably, sales in the ₹10–20 crore luxury bracket surged 170% YoY, highlighting the growing appetite for ultra-premium residences in metro cities, the report said.

According to Knight Frank, the share of housing units priced below ₹50 lakh has dropped sharply, from 54% in Q3 2018 to just 20% in Q3 2025, reflecting a shift towards premium and luxury homes. In the ₹1 crore and above segment, Bengaluru led with a 38% share of total sales, followed by Mumbai and Hyderabad at 3% each. Overall, this segment registered a 17% year-on-year growth in sales.

NCR dominates housing sales in the premium and luxury categories

In the higher price brackets, NCR dominated sales in both the ₹2–5 crore and ₹5–10 crore categories during Q3 2025. Mumbai led the ₹20–50 crore segment with a 7% share in total sales, while both Mumbai and NCR topped the ultra-luxury ₹50 crore-plus category, recording 10 units sold each, as per the report.

In Q3 2025 prices have continued to rise even as developers are increasingly introducing financing options, including bank tie-ups and subvention schemes, to stimulate sales. Defying expectations of a correction, the residential market remained rangebound yet resilient in Q3 2025. Premium housing sales, meanwhile, held firm as financing innovations, fiscal incentives, and buyer-focused measures continued to channel demand into higher-value segments, the report noted.

“India’s residential market in Q3 2025 has demonstrated an impressive ability to sustain momentum and the market is now in its fifth year of an upcycle. Consequently, Y-o-Y growth rate is beginning to rationalise, and we may be entering a prolonged plateau phase. Within a volatile geopolitical environment, India’s macroeconomic conditions remain stable,” said Shishir Baijal, chairman and managing director, Knight Frank India.

"The rate cut of up to 100 basis points, and liquidity support through the simplification of both direct taxes and GST have collectively strengthened end-user confidence. A notable outcome of this upcycle has been the surge in demand for premium housing, which has emerged as a key driver in recent years, reflecting the evolving aspirations of urban buyers for larger and higher-quality homes,” he said.

The report noted that during the first nine months of this year, the sales dipped by 1% annually to 2,57,804 units across eight major cities compared with the same period last year. These eight cities are Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Chennai, Hyderabad, Bengaluru, Kolkata and Ahmedabad.

"We are not seeing any signs of demand slowdown as of yet," said Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure, and Valuation, Knight Frank India.

He said the sales have risen marginally during the latest September quarter, despite concerns in markets about the possibility of a demand slowdown. But he noted that there have been some ‘cracks’ in demand for luxury and ultra-luxury homes.

He suggested that real estate developers focus on launching affordable projects, noting limited growth potential in the luxury housing segment.