India's housing market gets 'premium', with surging value despite sales dip

Housing sales data shows regional imbalance with Southern markets gaining, even as North and West sees dip

India’s housing sales momentum is increasingly moving towards premium residences, with transactions rising despite a fall in absolute sales, according to a report by digital real estate platform PropTiger. 

 

The report stated that sales across India’s top residential markets saw a 1 per cent year-on-year (Y-o-Y) decline in Q3 CY2025 (July to September), with over 95,547 units sold during the quarter, compared to 96,544 a year earlier.

 

Despite this drop in sales, the total value of transactions has surged 14 per cent on-year to Rs 1.52 lakh crore, indicating a strong luxury housing demand.  

 

“The Indian 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 for Aurum PropTech.

 

He added that the quarter’s performance underscores the remarkable resilience of the premium segment, which continues to be the market’s primary growth engine, supported by stable macroeconomic fundamentals and strong buyer sentiment.

 

Among the major markets, Pune, Mumbai Metropolitan Region (MMR) and Delhi-NCR saw their residential sales dipping significantly in Q3.

 

While Pune saw a 28 per cent Y-o-Y drop from 18,004 units in Q3 2024 to 12,990 units in this year, MMR’s housing sales declined by 22.3 per cent on-year drop. Similarly, Delhi NCR’s residential sales fell by 21.2 per cent Y-o-Y to 7,961 units this quarter compared to 10,098 units sold in the same period last year.    

 

The sales slump however saw a strong regional divergence, with southern and eastern markets emerging as growth drivers for overall housing sales numbers. 

 

“While Chennai sales jumped 120.9 per cent Y-o-Y to 7,862 units in Q3, Hyderabad rose 52.7 per cent to 17,658 units,” the report adds. 

 

In line with overall housing sales, new supply across the top eight cities also fell by 5.1 per cent annually, with 91,807 units launched in Q3 2025 compared to 91,863 units in the same quarter last year. 

 

However, there was a 3.6 per cent quarter-on-quarter (Q-o-Q) growth in launches from the 84,138 units in Q2 2025, signaling cautious optimism among developers. 

 

“This trend suggests that developers are strategically launching higher value projects to align with the current buyer demand, which is heavily skewed towards the premium and luxury segments,” the report added.