Property prices in top 8 mkts rise 7-19% in Q3 on housing premiumisation

Delhi-NCR recorded the sharpest 19% jump in Q3 2025 housing prices, followed by Bengaluru and Hyderabad, as premium demand and limited supply continue to drive India's real estate boom

India’s top eight housing markets saw a 7 to 19 per cent increase in property prices during the July–September quarter (Q3 2025), driven by strong end-user demand in the premium segment.

 

According to a report by digital real estate transaction and advisory platform Proptiger, the sustained upward movement of prices in these markets was also supported by elevated input costs and a limited supply of quality, ready-to-move-in inventory.

 

Which markets recorded the highest price growth?

 

Among the top eight markets, Delhi-NCR saw the steepest year-on-year average residential price appreciation of 19 per cent, from Rs 7,479 per sq. ft. in Q3 2024 to Rs 8,900 per sq. ft. in Q3 2025. It was followed by Bengaluru, which posted a 15 per cent on-year rise from Rs 7,713 per sq. ft. to Rs 8,870 per sq. ft.

 

 

Similarly, Hyderabad witnessed a 13 per cent increase in property prices to Rs 7,750 per sq. ft. from Rs 6,858 per sq. ft. during the same period. In the Mumbai Metropolitan Region (MMR), average prices rose 7 per cent to Rs 13,250 per sq. ft. from Rs 12,383 per sq. ft. last year.

 

Other key markets — Ahmedabad, Chennai, Kolkata, and Pune — also reported moderate price gains.

 

What is driving the premiumisation trend in housing?

 

Ashok Kapur, chairman of Krishna Group and Krisumi Corporation, said the sharp rise in property prices across markets such as Delhi-NCR reflects strong and sustained demand for quality homes. 

 

“Rising disposable incomes, supported by affordable home loan rates and GST reforms, have strengthened purchasing power,” he added.

 

This rise comes despite a marginal 1 per cent dip in home sales to 95,547 units this quarter. However, the total value of properties sold surged 14 per cent year-on-year to Rs 1.52 trillion — a clear sign of a market shift toward premiumisation.

 

How are developers responding to changing buyer preferences?

 

Demand remains particularly robust in the premium segment, driven by the growing appetite of end-users seeking better living standards.

 

About 91,807 units were launched across the top eight markets, marking a slight 0.1 per cent year-on-year dip. Sequentially, however, launches increased 9.1 per cent, signalling cautious optimism among developers.

 

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