India’s real estate market in Q3 2025 reflected mixed signals, with overall housing sales seeing a modest decline even as luxury housing witnessed strong momentum. Market data shows that while affordability concerns are weighing on mid-income buyers, the premium segment continues to drive growth across major cities.
Here are the 10 key takeaways:
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Housing sales dropped slightly compared to the previous quarter, reflecting cautious buyer sentiment.
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Luxury homes priced above ₹5 crore surged in demand, particularly in Mumbai, Delhi-NCR, and Bengaluru.
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Overall prices moved higher, with an average increase of 5–7% across top cities.
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Affordable housing share declined further, highlighting limited new supply in this segment.
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Developers shifted focus to premium projects, targeting high-net-worth individuals.
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New project launches slowed, as builders reassessed demand trends.
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Office space absorption stayed strong, backed by IT and co-working demand.
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Investor activity increased in luxury real estate, seeing it as a safe-haven asset.
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Government incentives remain critical for boosting affordable and mid-income housing.
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Outlook remains positive for 2026, with demand expected to recover alongside festive and policy support.
Experts say Q3 2025 highlights a structural shift—India’s housing market is leaning more toward premium and luxury categories, even as affordability challenges persist.
