India’s residential real estate market concluded the third quarter of 2025 in a phase of sophisticated evolution, marked by a key strategic divergence. While the total volume of units sold across the top eight cities moderated, the sector witnessed a significant escalation in transactional value. This powerful trend, as outlined in PropTiger’s latest report, confirms a deepening structural shift toward premiumization, where fewer but more expensive homes are driving overall market growth and reinforcing the sector’s projection to reach USD 1 trillion by 2030.
The headline transaction numbers indicated market stabilization. A total of 95,547 units were sold, reflecting a marginal decline of 2.2 percent quarter-on-quarter and 1.0 percent year-on-year. However, this volume-based analysis is countered sharply by the financial data: the aggregate value of homes sold in Q3 2025 surged by a substantial 14 percent year-on-year, reaching approximately INR 1.52 lakh crore. This remarkable jump underscores the resilience and preference of end-users for higher-value properties, often driven by a desire for lifestyle upgrades and favorable long-term economic indicators.
Further supporting market viability, the quarter introduced critical policy tailwinds. In a landmark decision, the GST Council announced a reduction in the Goods and Services Tax on cement, dropping it from 28 percent to 18 percent, and lowering rates on construction materials like marble and granite blocks from 12 percent to 5 percent.
Effective September 22, 2025, this measure provides a much-needed financial buffer for developers against persistent high input costs. This governmental intervention is anticipated to stabilize property price escalations and enhance the financial viability of projects, particularly within the crucial affordable and mid-income categories. Separately, the discourse around The Registration Bill 2025 gained momentum, aiming to replace the century-old act with a modern, digitized framework to boost transparency and buyer confidence.
Geographically, new supply and strong demand concentrated in specific corridors. The western and southern markets led new launches, with the Mumbai Metropolitan Region, Pune, and Hyderabad collectively accounting for nearly 60 percent of new inventory.
However, the most striking resurgence in developer confidence was seen in eastern and southern markets, with new launches in Kolkata and Chennai surging by an extraordinary 128.8 percent and 105.0 percent year-on-year, respectively. On the demand side, Hyderabad led all top cities, recording 17,658 units sold, driven by strong economic fundamentals and relentless IT sector growth.
The appreciation in property prices was unabated, reflecting the demand for quality inventory. Delhi NCR led the top cities with a remarkable 19 percent year-on-year price appreciation, largely fueled by luxury launches and infrastructure upgrades in Gurugram. Bengaluru and Hyderabad also recorded strong double-digit growth of 15 percent and 13 percent, respectively.
While the overall market health remains sound with the Quarters-to-Sell standing at a comfortable 5.8 quarters, a key strategic indicator requires monitoring. The surge in new launches in the high-end segments has resulted in a corresponding increase in unsold stock in specific brackets.
Unsold inventory in the INR 2-5 crore price range has risen by a significant 47 percent year-on-year. This growing stock of high-value properties is a key metric for industry players to observe, as its absorption will be critical for maintaining market equilibrium.
PropTiger’s Outlook notes that the upcoming Q4 will be a true test of the market’s resilience as it heads into 2026, driven by seasonal festive demand and the need to navigate the absorption of this premium inventory.
