Residential sales across India’s top seven cities fell 12% year-on-year to 202,756 units during January–September 2025, driven by high property prices, the monsoon season, a pre-festive lull, and economic uncertainty, according to a JLL report released on October 28.
In Q3 2025, sales declined 9% year-on-year and 2% quarter-on-quarter to 67,980 units, in line with the nine-month trend. Pune and Chennai, however, bucked the slowdown, recording 14% and 13% year-on-year growth, respectively, it noted.
Bengaluru, Mumbai, and Pune together accounted for over 60% of total residential sales during the period, despite a 9% drop in their combined volumes. Delhi-NCR saw the sharpest fall in sales at 29%, followed by Kolkata at 21% and Mumbai at 16%, while Chennai stood out with a 15% rise in sales, the report said.
The premium segment showed marginal Y-o-Y growth in sales during Q3 2025, however homes priced within ₹1.5-3.0 crore experienced 14% Y-o-Y growth. Demand in the sub- ₹1.0 crore range decreased by 23% Y-o-Y compared to the same period last year, it noted.
“January-September 2025 showed a shift toward a ‘value-driven’ market with premium housing demand driving overall sales despite 12% Y-o-Y drop-in total units sold. Interesting to note, demand for projects launched during the same quarter has been witnessing sustained momentum, with Q3 2025 following this trend. Even for the period between January to September 2025, approximately 24% of sales were contributed by properties launched during the first nine months of 2025, marginally higher than the share observed during January-September 2024.” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL
Construction cost hikes dampen new housing project launches
While premium housing saw strong demand, developers were cautious with new mid-range and affordable launches where demand has been sluggish over the last few quarters, the report said.
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Q3 2025 brought 70,915 new homes to market, totalling 225,001 units for the first nine months, down just 1% annually. Kolkata, Chennai, Pune, and Bengaluru recorded strong annual growth in launched units, the report noted.
Premium housing segment price growth offsets overall sales volume decline
Home prices in India’s seven major cities maintained their upward trajectory in Q3 2025, posting annual increases ranging from 6% to 16%. Kolkata topped the list with 16% growth, followed by Chennai at 14%, while Delhi NCR and Bengaluru both recorded 13% growth, it said.
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Developers’ focus on higher-margin premium developments, elevated construction costs, and sustained buyer demand drove broad-based price appreciation across all key markets, the report noted.
Outlook: Sustained growth trends expected to prevail
The Indian housing market is moving toward a balanced phase after strong growth, as rising property prices create affordability concerns and sales slowdown. Home prices will keep rising due to strong luxury demand, low inventory, and developers’ pricing power, even as sales moderate. Overall volume growth will slow, but luxury and premium segments will drive the market, it said.
