In a notable development, homes priced at ₹1 crore and above comprised 52% of all residential sales in India during Q3 2025, up from 46% in the same quarter last year. This shift indicates a rising preference for premium housing in key markets across the country.
The ₹1–2 crore bracket led growth among premium segments, showing year-on-year gains of 17%. In contrast, homes priced below ₹1 crore saw a decline in share as buyers moved towards larger, higher-quality properties. The luxury category (₹10–20 crore) also registered a strong surge of 170% year-on-year, underscoring demand at the upper end of the spectrum.
City-wise, Chennai recorded the strongest annual growth rate of 12%, registering 4,617 units sold—its highest since the pandemic era. Major markets like NCR, Mumbai, Hyderabad, and Bengaluru held relatively steady, with Bengaluru registering 14,538 units sold in the quarter. However, Pune was the only city to report a sales decline, down 8% year-on-year.
Despite the premium tilt, overall housing sales across India’s top eight markets grew modestly by 1% year-on-year, reaching 87,603 units in Q3 2025. The total sales value increased by 14%, highlighting that buyers continued investing in more expensive homes.
Analysts point to improved liquidity, falling inflation (down to 2.07% in August 2025), and a 1% cut in the repo rate since late 2024 as key macro drivers supporting demand. Developers have also intensified launch activity in mid-to-premium segments and offered buyer incentives to sustain momentum.
The data suggests that India’s housing market is deepening its shift towards premium and luxury homes, with aspirational buyers showing strong appetite for better-quality properties even as overall volume growth remains measured.
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