Mumbai and Pune, two of India’s most active real estate markets, recorded a sharp surge in housing demand, with sales doubling to 1.05 lakh units in the first half of 2025 compared to the same period last year, according to industry data. The rise reflects strong buyer sentiment, driven by steady economic recovery, new project launches, and robust demand in the mid- to premium-housing categories.
Analysts noted that while overall sales numbers have soared, the share of affordable housing has seen a noticeable decline. Higher input costs, limited new launches in the budget segment, and rising home loan rates have shifted demand toward mid-income and luxury properties. Developers are increasingly focusing on premium projects, catering to urban professionals and business owners seeking larger homes with modern amenities.
Mumbai led the momentum with strong traction in both suburban and central micro-markets, while Pune’s demand was driven by IT hubs and integrated township projects.
Experts believe the trend highlights a structural shift in consumer preferences. While affordable housing remains critical for India’s housing needs, developers may need government support and policy incentives to revive growth in this segment alongside the premium boom.
