October 9, 2025: India’s real estate sector sustained steady momentum in the third quarter of 2025, supported by a stable economic environment, easing inflation, and a favourable interest rate scenario, according to Knight Frank’s latest market performance report. Inflation moderated to 2.07% in August, down from 3.65% a year earlier, while the Reserve Bank of India revised its FY 2026 GDP growth forecast to 6.8%. Repo rates remain a full percentage point lower than at the end of 2024, bolstering buyer confidence across key urban markets.
Between July and September, 87,603 housing units were sold nationwide, marking a modest 1% year-on-year (YoY) increase. Mumbai led the country with 24,706 units sold, up 2% YoY, while Chennai registered the sharpest growth at 12% YoY with 4,617 units — the highest since the pandemic. Sales remained broadly stable elsewhere, except Pune, which recorded an 8% decline YoY.
Despite healthy demand, the volume of new launches outpaced sales for the twelfth consecutive quarter. A total of 88,655 units were launched in Q3, down 2% from the previous period. Chennai and Bengaluru saw the most significant launch activity, up 44% and 28% YoY respectively, while Mumbai and the National Capital Region experienced a 19% decline in new supply, tempering overall figures. Developers increasingly offered bank and developer subvention schemes to stimulate sales.
Premium housing emerged as a key driver, with sales of units priced above Rs 1 crore up 13% YoY. The Rs 1–2 crore segment grew 17% YoY and accounted for 28% of total transactions. Inventory accumulation was most pronounced in the Rs 2–5 crore segment, though the quarter-to-sales (QTS) ratio remained around four quarters, indicating alignment with demand. Luxury and super-luxury categories, accounting for fewer than 1,500 units, remained highly volatile.
Knight Frank’s report underscores optimism in India’s housing market, particularly in the premium segment, with sustained price growth despite largely stable sales volumes in Q3 2025.
Source: NDTV
