India's housing markets see sales slowdown in Q3 2025: Housing.com

Residential sales across India's top eight housing markets stayed flat in Q3 2025 as rising land prices, construction costs, and inflation continued to weigh on affordability

India’s major residential markets witnessed a slowdown in sales during the July–September period of 2025 (Q3 CY25), with escalating land prices, higher construction costs, and inflationary pressures challenging both developers and customers, according to a report by Housing.com.

 

How did sales and new supply perform across major markets?

 

While new supply saw a marginal 3 per cent revival in Q3 compared with the same period last year, sales activity in the country’s eight key residential markets remained flat year-on-year (Y-o-Y) at 96,827 units, against 96,544 units last year.

 

These markets include Ahmedabad, Bengaluru, Chennai, Delhi National Capital Region (NCR), Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune.

   

The report noted that the main strain on the market continues to be in the affordable housing category.

 

What is driving weakness in the affordable housing segment?

 

“The price rally over the past half-decade has dampened sales in the affordable housing segment, a category vital for the sector’s long-term sustainability and growth,” said Praveen Sharma, chief executive officer, REA India (Housing.com).

 

Among major markets, Chennai recorded the highest annual sales growth at 51 per cent, with 5,389 units sold in this quarter compared with 3,560 units a year ago. It was followed by Kolkata and Bengaluru, which saw 43 per cent and 23 per cent increases in sales, respectively, supported by robust job markets and steady inflows of working professionals.

 

Which markets reported a decline in home sales?

 

In contrast, larger markets such as NCR and MMR witnessed Y-o-Y declines. While Delhi NCR sales dropped 14 per cent from 10,098 units in 2024 to 8,668 units, MMR sales fell from 30,010 units to 28,690 units, owing to pricing adjustments in the premium segments.

 

The report also noted that homes priced above Rs 45 lakh accounted for 84 per cent of total sales in Q3 2025.

 

What trends are shaping demand and supply in the real estate sector?

 

Sharma added that while demand and supply in the premium and high-end segments remain strong, supported by positive consumer sentiment, supply in the affordable housing category has been constrained despite steady underlying demand.

 

However, a 3 per cent on-year rise in new supply, led by southern and eastern markets, indicates unshaken developer confidence in the sector.

 

Which cities led new housing supply in Q3 2025?

 

Hyderabad saw a 52 per cent Y-o-Y rise in new supply, with 13,024 units launched in Q3 2025 compared with 8,546 units a year earlier. Similarly, new supply in Chennai rose 51 per cent to 7,031 units in Q3 2025, up from 4,649 units in Q3 2024.

 

Kolkata also recorded a 69 per cent Y-o-Y rise in new supply, increasing from 1,516 units in Q3 2024 to 2,557 units in the current quarter.