Housing Sales Value Surges 14% in Q3 2025 Despite Flat Volumes, More Buyers Looking For Premium Homes

The residential property market in India is shifting towards premium housing, backed up by renewed buyer demand. According to a new report by PropTiger.com, a digital real estate transaction and advisory platform, the total value of homes sold during the July–September quarter of 2025 rose by 14 per cent year-on-year to Rs 1.52 lakh crore despite housing sales volumes remaining almost flat.

A total of 95,547 units were sold across India’s top eight cities, a marginal 1 per cent dip from a year earlier, but the higher ticket sizes clearly indicate a growing appetite for larger and more luxurious homes. Developers appear to be responding in kind, focusing launches on the premium segment even as overall new supply fell slightly by 5.1 per cent to 87,179 units compared to last year.

“The Indian residential market is transitioning from a volume-led recovery to a more mature, value-driven phase,” says Onkar Shetye, executive director at Aurum PropTech, the parent company of PropTiger.com. He noted that stability in interest rates, healthy macroeconomic indicators, and supportive measures such as the recent GST reduction on cement have helped sustain buyer confidence.

Shetye added that the festive quarter will be a crucial period for the market, “a true test of the sector’s ability to balance growth momentum with emerging affordability challenges in the mid and entry-level categories.”

South India Takes the Lead

The latest data points to a clear geographic divergence. Southern markets, especially Chennai and Hyderabad, have emerged as the new growth engines.

Here’s what the data shows:

• Chennai recorded a 120.9 per cent year-on-year jump in home sales

• Hyderabad saw a strong 52.7 per cent increase, while Bengaluru posted a healthy 17.6 per cent growth

In comparison to these cities, sales in the western real estate pocket moderated in the July-September quarter. For instance, Mumbai Metropolitan Region (MMR) and Pune saw declines of 22.2 per cent and 27.9 per cent, respectively. Still, the MMR continued to be the largest market, contributing around 24.4 per cent of total sales, followed closely by:

• Hyderabad (at 18.5 per cent)

• Bengaluru (13.7 per cent)

• And Pune (13.6 per cent)

Developers are banking on this demand

On the supply side, developers have centred their new launches on the premium housing category. New launches have surged in certain pockets, for example:

• Kolkata saw an impressive 387.7 per cent increase year-on-year

• Supply in Chennai doubled by over 105 per cent

• Hyderabad saw a 46.6 per cent rise in new launches

The Delhi-NCR, however, saw a fall by -55.7 per cent in new projects on the supply side. Bengaluru too saw -57.8 per cent decline. These trends show developers are cautious in the areas where demand is slow.

Overall, the data shows that developers are selectively launching higher-value projects in the realty market, matching with buyers’ demand who are increasingly looking and moving towards lifestyle-driven housing rather than simply price-sensitive purchases.