India's real estate market demonstrated strength in Q3 2025, with 87,603 properties sold in the top eight cities, reflecting a 1% year-on-year increase, fueled by robust demand for luxury homes, which now represent 52% of overall sales, as reported by Knight Frank India. New product launches fell 2% year-over-year to 88,655 units. Simultaneously, there was a steep increase in prices throughout key markets, with the National Capital Region (NCR) rising by 19%, Bengaluru by 15%, and Hyderabad by 13%. Mumbai continued to be the biggest market, selling 24,706 units (+2% YoY), which accounted for 28% of total sales, while Chennai experienced the highest growth at 12% YoY, reaching 4,617 units, representing its peak sales following the pandemic. Other locations like NCR (12,955 units) and Bengaluru (14,538 units) upheld consistent sales. The report credits market resilience to inflation dropping to 2.07% in August 2025 and a 1% repo rate reduction by the RBI, which enhanced liquidity and fostered financing innovations.
High-end real estate remains a key factor in the industry's upward trend, which has lasted for five straight years. Properties valued over Rs. 1 crore (US$ 112,688.75) represented more than half of total sales, with the Rs. 1-2 crore (US$ 112,688-225,377) segment increasing by 17% year over year and the Rs. The luxury segment of 10-20 crore (US$ 1.13-2.25 million) is experiencing a 170% year-on-year increase, indicating robust urban demand for larger, superior-quality properties. Although there was a 4% year-over-year rise in unsold inventory to 5.06 lakh units, the market stays balanced, with Quarters to Sell (QTS) at 5.8, equivalent to under 18 months of supply. Price increases are strong in NCR, Bengaluru, and Hyderabad at 19%, 15%, and 13% year-on-year, respectively.
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