Housing prices in India continued their upward trajectory during the July-September (Q3) quarter of 2025. According to reports from PropTiger.com (via its “Real Insight Residential: July–September 2025” report) by Aurum Proptech, residential property price growth across the country’s top eight metropolitan markets ranged between 7% and 19% year-on-year (YoY).
For example, the weighted average residential price in the Delhi‑NCR region rose from about ₹7,479 per sq ft in Q3 2024 to around ₹8,900 per sq ft in Q3 2025 — roughly a 19% increase.
Key City-Wise Highlights
- Delhi-NCR recorded the highest increase: 19% YoY, and about 9.8% quarter-on-quarter (QoQ).
- Bengaluru saw around 15% YoY growth and about 12.6% QoQ increase in average price, from ~₹7,713 to ~₹8,870 per sq ft.
- Hyderabad logged approximately 13% YoY growth, rising to ~₹7,750 per sq ft from ~₹6,858 per sq ft. QoQ growth was more modest (~4.6 %).
- Other major markets including the Mumbai Metropolitan Region (MMR), Pune, Chennai, Kolkata and Ahmedabad posted single-digit gains (7-9 %).
What’s Driving the Rise in Housing Prices in India?
Premium and luxury demand
Buyers are shifting toward larger, better-amenity homes and premium projects. This premiumisation is pushing up average prices even while unit volumes remain stable.
Limited ready-to-move supply & higher input costs
There is a reported shortage of good quality ready-to-move homes in key micro-markets, and construction/material input cost inflation is reducing margin for developers, prompting higher pricing.
Infrastructure and regional dynamics
Metros with strong new infrastructure links, tech hubs and return of NRIs are seeing stronger demand (e.g., Delhi-NCR, Bengaluru). The location premium is becoming sharper.
Volume and Value Trends
Even though property sales volumes in the top eight markets dipped marginally — around a 1% YoY drop to 95,547 units in Q3 2025 — the value of properties sold increased by about 14% YoY to ~₹1.52 lakh crore. The Economic Times
This suggests that while fewer units changed hands, more transactions were in the higher-ticket (premium) range — reinforcing the premiumisation trend.
Implications & Watch-Points
- For buyers, the sharp rise in housing prices underscores the urgency to act if affordability is a concern — especially in metros where prices are moving upward quickly.
- For developers, the trend signals that premium projects are likely the growth engine; however, they must balance launch timing, inventory and pricing to avoid affordability traps.
- For investors, the rise in average housing prices in key metros may offer capital appreciation potential, though entry price and location will matter critically.
- Affordability concerns may grow: As prices in premium segments keep rising, middle-income homebuyers may find fewer entry-level options. The market may increasingly diverge between premium and affordable segments.
- Sustainability of growth: Will the 7-19% range be maintained through 2026? If interest rates rise or macro weakens, growth could moderate. The current rise is largely driven by specific segments and supply constraints.
Conclusion
Housing prices in India’s major metropolitan markets climbed significantly in Q3 2025, with year-on-year growth ranging between 7% and 19%, led by Delhi-NCR, Bengaluru and Hyderabad. The rise is driven by premium-segment demand, tight quality inventory and higher input costs. While volumes have flattened, value metrics indicate that higher-value homes are dominating the trend. For buyers, developers and investors, the message is clear: location, premium positioning and timing matter more than ever.
