India’s housing market witnessed a marginal 1% year-on-year decline in home sales across the top eight cities during Q3 2025, as per PropTiger’s latest report. While 95,547 units were sold between July and September—slightly lower than 96,544 units a year ago—the total transaction value surged 14% to ₹1.52 lakh crore, indicating a decisive shift toward premium housing.

Southern cities like Chennai, Hyderabad, and Bengaluru led the momentum with robust double-digit growth, even as sales in MMR, Pune, and Delhi-NCR contracted sharply. Analysts said the market is transitioning from a volume-led phase to a more mature, value-driven cycle, with the festive quarter set to test the sustainability of this premium-led demand.

Despite the slight drop in sales volume, higher-value properties continued to dominate purchases, underscoring the resilience of the premium and luxury housing segment, the report said.

“India’s housing market is moving from a volume-led recovery to a more mature, value-driven phase,” said Onkar Shetye, executive director, Aurum PropTech. “The premium segment remains the key growth engine, supported by stable interest rates, strong buyer sentiment, and reforms such as the GST cut on cement. The festive quarter will be a key test of whether the market can sustain this momentum while addressing affordability challenges.”

PropTiger’s quarterly insights cover India’s top eight housing markets: Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR (Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad), MMR (Mumbai, Navi Mumbai, Thane), and Pune.

The PropTiger report highlighted strong regional divergence. Southern cities emerged as growth drivers, Chennai sales jumped 120.9% YoY to 7,862 units, while Hyderabad rose 52.7% to 17,658 units. Bengaluru also registered a 17.6% YoY rise to 13,124 units.

In contrast, Western markets saw steep declines. The Mumbai Metropolitan Region (MMR) fell 22.2% to 23,334 units, while Pune dropped 27.9% to 12,990 units. Despite the dip, MMR continued to dominate national sales with a 24.4% share, followed by Hyderabad (18.5%), Bengaluru (13.7%), and Pune (13.6%).

Delhi-NCR also saw a 21.2% decline to 7,961 units, while Kolkata managed a moderate 33.4% rise to 3,729 units.

New project launches across major cities stood at 91,807 units, marking a 5.1% annual decline. However, quarter-on-quarter, supply rose 3.6%, reflecting cautious optimism among developers focused on high-value projects.

Southern and eastern cities again outperformed; Kolkata saw a 387.7% surge to 3,469 units, while Chennai’s launches more than doubled (up 105%). Hyderabad followed with a 46.6% rise with 12,530 units, and Pune grew 26.7% YoY to 13,543 units.