The Indian housing market is showing steady price growth, as confirmed by data for the third quarter of 2025. The country's eight largest cities recorded annual price growth ranging from 7% to 19%. This trend is driven by several factors: stable demand from end-users, rising construction costs, and a limited supply of finished housing. Despite a slight decline in sales volumes, the price of homes sold has increased significantly, indicating a shift in buyer preferences toward premium and luxury projects.
The most significant price growth was recorded in the National Capital Region (NCR) of Delhi, where the annual increase was 19%. The average price per square foot reached 8,900 rupees, up from 7,479 rupees a year ago. Quarterly growth was 9.8%, driven by increased interest in expensive apartments and the continued impact of infrastructure improvements on purchasing behavior. The region is also seeing growing demand for large residential complexes and gated communities with developed infrastructure, which is maintaining pricing pressure.
Bangalore continues to demonstrate impressive double-digit price growth, increasing by 15% year-on-year and 12.6% quarter-on-quarter. The average price per square foot reached INR 8,870, up from INR 7,713 in Q3 2024. Robust demand from IT professionals, returning non-resident Indians, and end users seeking convenient locations and quality property management is a key driver of growth. Limited supply in the city's popular micro-markets is also contributing to further price increases.
Hyderabad: Steady Growth and the Premium Segment
Hyderabad has recorded impressive property price growth: 13% year-on-year and 4.6% quarter-on-quarter, pushing the average price per square foot to INR 7,750. This sustained rise is driven by several factors. Firstly, the market is actively attracting premium buyers attracted by large-scale projects in townships. Secondly, there is a shift in developer activity toward increasingly expensive and exclusive projects, which is also driving up prices. Despite a slight slowdown in absorption rates compared to the peaks of 2023 and 2024, prices remain stable, and there is no significant downward pressure.
Ahmedabad, Pune, and Chennai: Strong Growth and Diversified Demand
The three cities saw significant price growth. Ahmedabad recorded a nearly 8% year-on-year increase, with the average price reaching INR 4,820 per square foot. The market is actively attracting first-time buyers and middle-income families, with supply generally matching growing demand. Pune and Chennai also saw 9% year-on-year growth. In Pune, the average price rose to INR 7,250 per square foot, driven by the launch of premium projects in the western districts. In Chennai, the average price reached Rs 7,173 per sq ft, where demand in the mid-segment remains stable despite a slight decline.
The most significant price growth was recorded in the National Capital Region (NCR) of Delhi, where the annual increase was 19%. The average price per square foot reached 8,900 rupees, up from 7,479 rupees a year ago. Quarterly growth was 9.8%, driven by increased interest in expensive apartments and the continued impact of infrastructure improvements on purchasing behavior. The region is also seeing growing demand for large residential complexes and gated communities with developed infrastructure, which is maintaining pricing pressure.
Bangalore continues to demonstrate impressive double-digit price growth, increasing by 15% year-on-year and 12.6% quarter-on-quarter. The average price per square foot reached INR 8,870, up from INR 7,713 in Q3 2024. Robust demand from IT professionals, returning non-resident Indians, and end users seeking convenient locations and quality property management is a key driver of growth. Limited supply in the city's popular micro-markets is also contributing to further price increases.
Hyderabad: Steady Growth and the Premium Segment
Hyderabad has recorded impressive property price growth: 13% year-on-year and 4.6% quarter-on-quarter, pushing the average price per square foot to INR 7,750. This sustained rise is driven by several factors. Firstly, the market is actively attracting premium buyers attracted by large-scale projects in townships. Secondly, there is a shift in developer activity toward increasingly expensive and exclusive projects, which is also driving up prices. Despite a slight slowdown in absorption rates compared to the peaks of 2023 and 2024, prices remain stable, and there is no significant downward pressure.
Ahmedabad, Pune, and Chennai: Strong Growth and Diversified Demand
The three cities saw significant price growth. Ahmedabad recorded a nearly 8% year-on-year increase, with the average price reaching INR 4,820 per square foot. The market is actively attracting first-time buyers and middle-income families, with supply generally matching growing demand. Pune and Chennai also saw 9% year-on-year growth. In Pune, the average price rose to INR 7,250 per square foot, driven by the launch of premium projects in the western districts. In Chennai, the average price reached Rs 7,173 per sq ft, where demand in the mid-segment remains stable despite a slight decline.
Kolkata and MMR: Steady Growth and Diversification
Kolkata posted an 8% year-on-year price increase, reaching INR 6,060 per square foot. This rise was driven by robust sales in the affordable and mid-income housing segments. Demand is becoming increasingly diversified, driven by the development of new micro-markets. The Mumbai Metropolitan Region (MMR) posted a 7% increase, with the average price reaching INR 13,250 per square foot. Developers remain confident in the market outlook, driven by continued buyer interest in premium vertical developments and redevelopment projects in established locations, which is stimulating the introduction of new supply.
Total sales volume across the eight largest cities reached 95,547 units, down 1% from Q3 2024 and 2.2% from Q2 2025. Meanwhile, the value of homes sold rose 14% year-on-year to Rp 1.52 trillion, driven by more expensive properties.
Kolkata posted an 8% year-on-year price increase, reaching INR 6,060 per square foot. This rise was driven by robust sales in the affordable and mid-income housing segments. Demand is becoming increasingly diversified, driven by the development of new micro-markets. The Mumbai Metropolitan Region (MMR) posted a 7% increase, with the average price reaching INR 13,250 per square foot. Developers remain confident in the market outlook, driven by continued buyer interest in premium vertical developments and redevelopment projects in established locations, which is stimulating the introduction of new supply.
Total sales volume across the eight largest cities reached 95,547 units, down 1% from Q3 2024 and 2.2% from Q2 2025. Meanwhile, the value of homes sold rose 14% year-on-year to Rp 1.52 trillion, driven by more expensive properties.