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India’s Residential Market Sees Strong Price Appreciation in Q3 2025

India’s Residential Market Sees Strong Price Appreciation in Q3 2025

In the third quarter of 2025 (July‑September), India’s residential real estate market across eight major cities witnessed solid price growth — ranging between 7% and 19% year‑on‑year (YoY). The sharpest increases were in the Delhi NCR and Bengaluru markets, driven by strong demand in the premium segment, limited ready‑to‑move inventory and rising input costs.


The Numbers: By City and Quarter

Here are the headline figures from the quarterly report titled “Real Insight Residential: July‑September 2025” published by PropTiger.com by Aurum Proptech. 

  • Delhi NCR:

    • YoY price increase: ~19% 

    • QoQ (quarter‑on‑quarter) increase: ~9.8% 

    • Weighted average price: from ~ ₹7,479 per sq ft in Q3 2024 to ~ ₹8,900 per sq ft in Q3 2025. 

  • Bengaluru:

    • YoY increase: ~15% 

    • QoQ increase: ~12.6% 

    • Price: from ~ ₹7,713 per sq ft in Q3 2024 to ~ ₹8,870 per sq ft in Q3 2025. 

  • Hyderabad:

    • YoY increase: ~13% 

    • QoQ increase: ~4.6% 

    • Price: from ~ ₹6,858 per sq ft in Q3 2024 to ~ ₹7,750 per sq ft in Q3 2025. 

  • Other major markets:

    • Mumbai Metropolitan Region (MMR): ~7% YoY growth. 

    • Pune: ~9% YoY growth. 

    • Chennai: ~9% YoY growth. 

    • Kolkata: ~8% YoY growth


Supply, Sales & Premiumisation Trend

Beyond price growth, the report highlights notable trends in supply and sales dynamics:

  • Sales Volume: Across the eight prime residential markets, ~95,547 units were sold in Q3 2025 — representing a 1% YoY decline. On a QoQ basis, volume dipped ~2.2%. 

  • Value of Sales: Despite the slight dip in volumes, the value of properties sold increased ~14% YoY to approx ₹1.52 lakh crore. This gap between volume and value signals premiumisation — i.e., more sales are shifting toward higher‑value homes. 

  • New Supply (Launches):

    • Annual decline in launches: ~0.1% (with ~91,807 units launched in this quarter) 

    • QoQ jump in launches: ~9.1% growth over the previous quarter. 

    • Geographic distribution of launches: MMR contributed ~26.9% of new launches; Pune ~18.7%; Hyderabad ~13.6%. These three together accounted for ~59.2% of the new inventory in Q3. 


What’s Driving the Growth?

Several key factors underpin the observed price increases and market dynamics:

  1. Premium/Luxury Segment Focus
    The report indicates that developers are increasingly launching higher‑value projects to meet buyer demand for premium homes. This pushes the average value of units sold and contributes to price appreciation. 

  2. Rising Input Costs & Shortage of Ready Homes
    With construction material costs up, and fewer ready‑to‑move‑in homes available, developers are pricing accordingly. The shortage of completed supply also reduces downward pressure. 

  3. Infrastructure and Location Upgrades
    Especially in markets such as Delhi NCR and Bengaluru, rapid infrastructure development (transit, highway connectivity, peripheral expansion) is boosting demand for homes in emerging micro‑markets—hence accelerating price growth. 

  4. Investors & Buyers Seeking Appreciation
    With interest rates relatively stable and the overall economy showing resilience, real estate is increasingly viewed as a store of value. The shift to premium product suggests buyers are willing to pay more for quality, location and ready‑to‑move options.


Implications & What It Means for Buyers, Investors and Developers

Here are some key take‑aways for different stakeholders:

  • For Buyers:

    • If you’re entering the market, acting sooner rather than later may make sense in high‑growth cities like Delhi NCR or Bengaluru, as prices are rising double‑digit.

    • However, be cautious about overspending — ensure product quality, timely completion, and track record of developer rather than chasing just “price appreciation”.

    • For mid‑segment buyers, the uptick in premium segment may push them to look for value in secondary/smaller cities or micro‑markets within major metros.

  • For Investors:

    • The fact that value of sales rose even while volumes declined signals that premium homes have become the driver — this could mean stronger near‑term appreciation potential in A‑grade projects and micro‑markets with strong demand.

    • However, liquidity may be more concentrated in better‑known markets; secondary projects may face slower turnover.

    • Monitor supply side: if new launches remain tight, the scarcity could further boost prices; but oversupply in certain pockets could pressure returns.

  • For Developers:

    • Focus on premium/luxury product seems effective—especially in top metros. But that also means higher costs, more risk and expectation of delivery/quality.

    • Launching in high‑growth micro‑markets or cities seeing infrastructure upgrades can yield price upside.

    • Keeping an eye on affordability: pricing too high too fast can squeeze the mid‑segment of home‑buyers.


Outlook & What to Watch

  • Sustainability of Growth: While Q3 showed strong YoY growth, sustaining double‑digit growth across the board may be challenging if input costs stabilize, interest rates rise or macro‑headwinds mount.

  • Affordability Dynamics: As premium home prices rise, affordability may squeeze mid‑income buyers, pushing them to smaller cities or suburbs.

  • Inventory Pipeline: With new launches up QoQ but flat YoY, supply remains a key variable. If launches increase significantly, price growth could moderate.

  • Regional Variation: The growth is not uniform — some metros like MMR, Pune, Chennai and Kolkata are seeing lower single‑digit price growth. Buyers/investors should do micro‑market analysis rather than assume all cities perform equally.

  • Policy & Rate Environment: Changes in interest rates, tax incentives (for affordable housing), and infrastructure announcements can all impact sentiment and growth.


Conclusion

The Q3 2025 data for India’s major residential real‑estate markets suggests a robust upward trend in property prices — particularly in metros like Delhi NCR (19% YoY) and Bengaluru (15% YoY). The market is being driven by a premiumisation of homes, stronger buyer willingness to pay for quality and location, as well as limited ready inventory and rising costs. For stakeholders — buyers, investors and developers alike — the message is clear: the top‑tier markets are heating up, but careful micro‑market selection, product due diligence and timing remain key.