India’s housing market is showing no signs of cooling. Home prices in the July–September quarter of 2025 rose sharply across the country’s biggest real estate hubs — by 7% to 19% year-on-year — with Delhi-NCR, Bengaluru, and Hyderabad leading the rally.A combination of strong end-user demand for premium homes, higher construction costs, and limited ready supply has kept valuations elevated, according to PropTiger.com’s ‘Real Insight Residential: July–September 2025’ report.Developers say affluent buyers have returned with upgraded lifestyle expectations, and they are willing to pay a premium for gated communities, smarter homes, better amenities, and faster delivery.
“This is no longer a speculative cycle — it’s a structural shift driven by real buyers chasing quality,” say market analysts tracking the sector.City-Wise Breakdown: Delhi-NCR: The Comeback ChampionHome prices in Delhi-NCR rose 19% year-on-year to reach ₹8,900 per sq ft, marking the steepest increase across India’s top markets. The region also saw 9.8% quarter-on-quarter growth, indicating that momentum has not yet peaked.The surge has been powered by major infrastructure upgrades and growing luxury demand. Gurugram led the charge, with strong absorption across the Golf Course Extension Road and Dwarka Expressway micro-markets, which have become magnets for corporates and high-net-worth individuals.The NCR boom is being driven by job growth in services and global capability centers (GCCs), investor confidence in upcoming infrastructure projects such as the Dwarka Expressway and metro expansions, and a scarcity of ready luxury stock.Bengaluru: Fueled by Tech-Led Affluent UpgradersIn Bengaluru, home prices rose 15% year-on-year and 12.6% quarter-on-quarter, bringing the city’s average rate to ₹8,870 per sq ft.Demand remains concentrated in the eastern and southern IT corridors — Whitefield, Sarjapur Road, and Outer Ring Road — where hiring has stayed resilient despite global slowdown concerns.The market is witnessing fewer speculative launches and a higher proportion of premium 3-BHK units, as families continue to upgrade their homes in the post-pandemic period.Hyderabad: Still Hot, But Slightly CoolingIn Hyderabad, prices rose 13% year-on-year and 4.6% quarter-on-quarter, with the average price now at ₹7,750 per sq ft.Although growth has steadied after several years of steep increases, western Hyderabad, stretching from Gachibowli to Kokapet, continues to be among the most competitive premium corridors in the country.
MMR (Mumbai Metropolitan Region): High Base, Steady Rise
The Mumbai Metropolitan Region (MMR) continues to hold the title of India’s costliest market, with average prices at ₹13,250 per sq ft, up 7% year-on-year.Metro network expansion has pushed demand further into Thane and Navi Mumbai, while premium launches featuring sea views and branded developers have continued to lift ticket values.
Quick Glance at Other Markets
CityAvg Price (₹/sq ft)YoY ChangeWhat’s Driving ItPune7,2509%Connectivity to job hubs and a thriving migrant workforceChennai7,1739%Demand along OMR and growth in manufacturingKolkata6,0608%Stable pricing drawing end-users backAhmedabad4,8207.9%Affordable-to-premium shift and infrastructure build-out
Across cities, demand from end-users has replaced speculative buying, a structural positive for the sector.Sales Strong in Value, Not Volume — Premiumisation at PlayA total of 95,547 housing units were sold in the July–September quarter, representing a 1% year-on-year dip in volume. However, the total sales value rose 14% year-on-year to ₹1.52 lakh crore.This indicates that while fewer homes are being sold, they are more expensive, with buyers opting for larger, higher-quality properties. Developers have thus retained their pricing power.New Supply: Cautious, but ReturningDevelopers launched 91,807 new units in the quarter, flat year-on-year but up 9.1% quarter-on-quarter, suggesting that they are gradually testing market appetite again.
Launch Concentration:
MMR: 26.9%
Pune: 18.7%
Hyderabad: 13.6%
Together, these three western and southern markets accounted for nearly 60% of all new supply, reflecting strong job migration and urban demand.What’s Fueling the Price Surge?
Strong premium appetite among mid- to high-income buyers
Demand outpacing completions, creating a scarcity premium
Rising land and construction costs
Improving rental yields, bringing investors back
India’s GDP outperforming global peers, sustaining consumer confidence
India’s real estate sector is also benefiting from a demographic dividend, as urban millennials enter their peak home-buying years.Outlook: Strong Through FY26 — But Watch AffordabilityAnalysts expect the housing market’s momentum to continue through mid-2026, supported by job growth and low default rates.However, they caution that affordability pressures in MMR and NCR, potential global rate shocks impacting mortgage costs, and construction delays could pose short-term risks.Still, with the luxury and upper-mid segments now dominating sales, industry players believe end-user demand will keep prices stable.“Prices may not rise at the same pace, but they’re unlikely to fall. Structural demand in India is real,” developers said.So What Now?India’s housing market is being re-priced upward — not by speculation, but by upgraded aspirations, rising incomes, and infrastructure developments that are creating new premium neighborhoods.Whether buying or investing, market watchers say waiting may turn out to be costlier than acting.
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