India's Residential Real Estate Market in Q3 2025: Luxury Drives Value Amid Sales Volume Dip
The third quarter of 2025 in India's residential real estate sector brought a mixed performance, particularly across the top seven cities. While housing sales volumes declined by 9 percent year-over-year, the total transaction value saw a robust 14 percent increase to ₹1.52 lakh crore. This divergence reflects a growing preference for luxury properties and premium housing segments amid challenging market conditions.
Luxury Segment Dominates Market Value
The rise in transaction value despite lower unit sales underscores the dominance of luxury real estate. Properties priced above ₹1.5 crore made up 38 percent of new launches, with premium housing units (₹80 lakh to ₹1.5 crore) contributing another 24 percent. Affordable housing accounted for a mere 16 percent of new inventory, showing developers' strategic focus on higher-margin segments. Average residential prices rose 9 percent year-over-year, reaching ₹9,105 per square foot, with the National Capital Region leading the price increases at 24 percent annually.
Regional Sales Performance Varies Widely
Mumbai Metropolitan Region, while remaining the largest market with 30,260 units sold, experienced a 16 percent sales volume decline. Pune followed with 16,620 units sold, down 13 percent. These western markets collectively represented nearly half of the total sales across the top seven cities. Chennai stood out with an impressive 33 percent increase in sales volume, while Kolkata grew modestly by 4 percent. Conversely, Delhi-NCR, Bengaluru, and Hyderabad saw sales declines, highlighting uneven demand across regions.
Resilience Amid Challenges
Despite seasonal challenges such as monsoon impacts and the 'shraad' period, the market showed resilience with a slight 1 percent increase in quarterly sales and a 3 percent rise in new housing supply. However, affordability remains a significant concern, with rising prices and costs pressuring buyer sentiment.
Uncertainties such as potential changes in U.S. H1-B visa policies could affect demand from tech professionals, a key buyer segment. Nonetheless, the festive season and upcoming new project launches offer hope for a market boost in the coming months.
This overview encapsulates the critical trends shaping India's residential real estate landscape in Q3 2025, reflecting a nuanced market balancing luxury demand and broader affordability challenges.