India’s residential real estate sector remained resilient in Q3 2025, balancing steady sales with rising new supply, according to the Real Insight Residential Report (July–September 2025) by PropTiger.com, part of Aurum PropTech. New housing supply grew 9.1% QoQ to 91,807 units, while home sales held firm at 95,547 units, down just 2.2% sequentially and 1% year-on-year.

Despite marginally lower volumes, the total transaction value surged 14% YoY to ₹1.52 lakh crore, highlighting a shift toward premium and high-value housing as buyers increasingly prioritise quality and long-term returns over affordability, according to a report by The Economic Times.

“The Indian housing market continues to stand on a strong macroeconomic foundation,” the report noted, citing stable inflation, robust private consumption, and steady construction activity. “The fiscal deficit is narrowing, borrowing costs remain predictable, and policy reforms like the GST reduction on construction materials are expected to ease input cost pressures.”

According to the report, India’s economy has emerged as a pillar of stability in a volatile global environment. GDP growth is projected at 6.5–6.7% for FY26, with CPI inflation averaging just 2.4%, the lowest in six years. The RBI’s repo rate has remained stable at 5.5%, providing a predictable borrowing environment and bolstering homebuyer confidence.

Two major policy developments strengthened market sentiment in Q3.

The GST Council’s decision to cut tax on cement (from 28% to 18%) and other key materials like marble and granite (from 12% to 5%), which is expected to reduce construction costs and enhance affordability.

The proposed Registration Bill 2025, aimed at digitizing property registration and record-keeping, which promises greater transparency and reduced litigation.

The report revealed divergent regional trends, with southern cities continuing to outperform. Hyderabad led in sales with 17,658 units sold, up 53% YoY, driven by robust IT-sector employment and infrastructure growth. Bengaluru followed with 13,124 units sold, supported by strong end-user demand. Pune and Chennai saw strong new launch activity, rising 26% and 25% QoQ, respectively.