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Prime Residential Markets Record Muted Activity in Q3 2025: Industry Report

Residential real estate activity across India s leading urban markets remained restrained during the third quarter of 2025 (July September), a period that coincided with the monsoon season. According to a recent industry report, housing sales across the country s eight major residential hubs stayed largely unchanged on a year-on-year basis, while new project launches edged up marginally by around 3% during the quarter. The report highlights that sustained price appreciation over the last five years has weighed heavily on demand in the affordable housing segment an area considered crucial for the long-term health of the real estate sector. In contrast, mid-income, premium, and luxury housing categories continued to witness stable demand, supported by strong buyer confidence and end-user interest. However, supply in the affordable segment remained limited despite consistent demand. Industry experts note that reviving this segment will require a dual strategy: encouraging developers to increase affordable housing supply and improving overall affordability for homebuyers through policy and financial support. Developer Sentiment Remains Positive Despite Slower Sales Despite subdued transaction volumes, developer confidence in the residential market appears intact. The report states that 94,419 new housing units were launched across the top eight cities in Q3 2025, compared to 91,863 units in the same period last year. On a quarter-on-quarter basis, new supply rose sharply by 12% , signaling renewed momentum after a phase of demand adjustment earlier in the year. Quarterly growth in new launches was led by cities such as Bengaluru , Hyderabad , and Ahmedabad , while strong annual growth was recorded in Kolkata and Chennai . Meanwhile, Mumbai Metropolitan Region and Pune together accounted for nearly 40% of total new supply , underlining Western India s continued dominance in the housing market. New Housing Launches (Units) City Q3 2025 Q2 2025 Q3 2024 QoQ YoY Ahmedabad 5,167 4,211 6,559 +23% -21% Bengaluru 14,971 12,307 13,972 +22% +7% Chennai 7,031 7,606 4,649 -8% +51% Delhi NCR 11,180 10,421 11,955 +7% -6% Hyderabad 13,024 10,748 8,546 +21% +52% Kolkata 2,557 2,202 1,516 +16% +69% Mumbai Region 25,727 23,062 31,123 +12% -17% Pune 14,762 13,581 13,543 +9% +9% Total 94,419 84,138 91,863 +12% +3% Mid and Premium Housing Segments Drive Sales Home sales across the eight major markets remained below the 100,000-unit mark in Q3 2025, registering a marginal 1% sequential decline . A key insight from the report is the growing dominance of higher-value homes, with properties priced above ₹45 lakh accounting for nearly 84% of total sales . This trend suggests that rising home prices are pushing a large section of the population toward rental housing, particularly in major employment hubs. On an annual basis, cities such as Bengaluru, Kolkata, and Chennai recorded notable growth in sales, supported by strong job creation and steady inflows of working professionals. In contrast, Delhi NCR and the Mumbai region experienced year-on-year declines, largely due to pricing corrections in premium projects. Housing Sales (Units) City Q3 2025 Q2 2025 Q3 2024 QoQ YoY Ahmedabad 8,297 9,451 9,352 -12% -11% Bengaluru 13,688 15,628 11,160 -12% +23% Chennai 5,389 5,283 3,560 +2% +51% Delhi NCR 8,668 10,051 10,098 -14% -14% Hyderabad 12,138 11,513 11,564 +5% +5% Kolkata 4,007 3,847 2,796 +4% +43% Mumbai Region 28,690 25,939 30,010 +11% -4% Pune 15,950 15,962 18,004 0% -11% Total 96,827 97,674 96,544 -1% 0% Outlook: Policy Support Key to Market Revival The report emphasizes that restoring balance in the housing market will require targeted government and regulatory interventions. Measures such as fiscal incentives, faster project approvals, and innovative financing solutions for both developers and buyers could help revive momentum particularly in the affordable housing segment.