Home sales value surges 14% in Q3 2025 despite flat volumes; premium segment leads growth, says PropTiger.com report

India’s residential real estate market is increasingly driven by premium and luxury demand, according to Real Insight Residential: July-September 2025, PropTiger.com’s latest quarterly report.

While overall sales volumes across eight prime cities remained largely flat at 95,547 units—a marginal 1% year-on-year (YoY) decline—the total value of properties sold jumped 14% YoY to INR 1.52 lakh crore, signalling a clear shift towards high-value transactions.

The report notes that the new supply moderated with 87,179 units launched, down 5.1% YoY. However, launches were up 3.6% sequentially, reflecting developers’ cautious optimism and strategic focus on high-value projects.

The data suggests a market where premium and luxury segments are outperforming mid and entry-level segments, supported by stable macroeconomic fundamentals, favourable interest rates, and policy incentives such as the recent GST reduction on cement.

Regional Divergence in Sales Performance

Southern and eastern markets led growth in Q3 2025. Chennai recorded an exceptional 120.9% YoY surge, while Hyderabad saw a 52.7% increase, highlighting the rising influence of Tier-2 and Tier-3 cities in India’s residential demand story.

In contrast, western markets moderated, with the Mumbai Metropolitan Region (MMR) down 22.2% and Pune declining 27.9% YoY.

Despite the slowdown, MMR remained the largest contributor to quarterly sales with a 24.4% share, followed by Hyderabad (18.5%), Bangalore (13.7%), and Pune (13.6%).

The report also points to developer activity rebounding in select markets, with Kolkata witnessing a 387.7% YoY surge in new launches, and Chennai more than doubling supply with a 105% YoY increase, indicating renewed confidence in these regions.

Premium Segment Continues to Drive Market Dynamics

According to the PropTiger.com report, properties priced above INR 2 crore contributed significantly to total sales value, despite flat overall volumes.

Mid and entry-level segments faced affordability pressures, with higher input costs impacting both buyers and developers.

However, the resilience of the premium segment, coupled with sustained buyer interest in high-quality residential projects, ensured that the market remained robust.

Outlook

Commenting on the findings, Onkar Shetye, Executive Director of Aurum PropTech, said, “The Indian residential market is transitioning from a broad-based, volume-led recovery to a more mature, value-driven growth phase. This quarter underscores the resilience of the premium segment as the market’s primary growth engine. The upcoming festive quarter will be a key indicator of consumer demand and will test the market’s ability to balance growth with affordability challenges, especially in mid and entry-level housing.”

The Q3 2025 trends signal that while volume growth is plateauing, value-led demand—particularly in Tier-2 and Tier-3 cities—is shaping the future trajectory of the Indian residential market. Developers are increasingly aligning new launches with this high-value demand, positioning the premium and luxury segments as the main drivers of sustainable growth.