Our Bureau
New Delhi
India’s housing market witnessed a sharp price surge in the third quarter of 2025, with property rates in major cities rising between 7% and 19% year-on-year, highlighting an affordability challenge for many homebuyers. Delhi-NCR led the increase with a 19% jump to Rs 8,900 per square foot, driven by strong demand for luxury homes and extensive infrastructure developments such as new expressways and metro corridors. Bengaluru followed with a 15% rise to Rs 8,870 per square foot, buoyed by tech sector hiring and end-user demand, while Hyderabad posted a 13% increase, reaching Rs 7,750 per square foot amid sustained investor interest and NRI demand.
Despite the price hikes, home sales volume dipped marginally by 1%, but the total sales value surged 14% to Rs 1.52 lakh crore, reflecting a shift towards bigger, more premium properties among buyers. New supply across top cities remained tight, although launches increased by around 9% compared to the previous quarter, concentrated largely in Mumbai, Pune, and Hyderabad.
Experts cite rising construction costs, a shortage of ready-to-move properties, and buyers’ growing preference for premium housing as key drivers behind the surge. The market is witnessing a tilt towards luxury and branded residences, with developers cautious yet optimistic amid these trends.
For prospective homebuyers, the rising prices and limited affordable inventory are raising concerns about accessibility and affordability, intensifying the struggle to buy homes in India’s biggest urban centers. Industry leaders signal that this upward momentum may continue due to ongoing infrastructure progress and lifestyle aspirations, indicating a robust but increasingly premium-centric housing market environment.
