Decoding India’s economic signals in 2025 till date

India's economy in early 2025 showed both strengths and challenges. GDP growth reached 6.2% in Q3 FY 2024-25, up from a revised 5.6% in Q2. This increase was encouraging but still represented the second weakest growth rate in two years, showing the ongoing challenges from global economic conditions.

 

1. Interest rates and inflation trends

In April, the Reserve Bank of India made its second consecutive rate cut, lowering the repo rate by 0.25 percentage points to 6.0%. Inflation also continued its downward trend, falling for the sixth straight month to 3.2% in April. With inflation staying below the central bank's target for three months, markets expected further rate cuts at the June policy meeting.

 

2. Growth outlook

India's economic outlook remained positive, with GDP growth for FY 2025-26 projected at 6.5%. Despite global uncertainties, several factors were expected to drive growth: steady rural demand, recovering urban spending, higher government infrastructure investment, and strong services exports.

 

3. What happened in India's housing market?

The first quarter of 2025 brought some interesting shifts in India's residential property market. While overall sales dropped, luxury home buyers drove a new wave of demand that reshaped the landscape.

 

4. The big picture

Home sales across India's major cities reached 65,246 units in the first quarter of 2025. This represented a 12% drop compared to the same period last year, and an 11% decline from the previous quarter.

However, three cities continued to dominate the market. Bengaluru, Mumbai, and Pune together accounted for 66% of all sales this quarter, showing their continued strength as India's property hotspots.

 

5. Luxury homes led the way

While the overall market saw a decline, expensive homes performed well. Apartments priced at INR 10 million and above grew by 10% compared to last year.

The real standouts? Premium properties saw remarkable growth:

Homes priced between INR 15-30 million grew by 22%

Ultra-premium segment (INR 30-50 million) jumped by 20%

This luxury demand helped cushion the overall market decline, showing that buyers with higher budgets remain actively engaged in purchasing homes.

 

6. Record-breaking new projects

Despite slower sales, developers launched 79,847 new homes in 2025, till date, the highest number for any first quarter in recent years. This represented 8% growth from the previous quarter and marked the fourth-highest quarterly launch figure ever recorded.

Projects launched during Q1 2025 generated 25% of the quarter's sales, continuing a recent trend driven by reputable developers promising timely delivery and steady appreciation.

Bengaluru led this new project momentum with its highest-ever quarterly launches at 20,484 units, growing about 62% compared to last year.

 

7. Shift in buyer preferences

The market showed a clear move away from budget options, with sales of apartments under INR 10 million dropping by around 32% compared to last year. This trend revealed that homebuyers valued quality, location, and amenities over just affordability.

*Data includes apartments only. Rowhouses, villas, and plotted developments are not included in this analysis. Mumbai includes Mumbai city, suburbs, Thane, and Navi Mumbai. Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad, and Sohna.

 

8. Where buyers spent most?

Across India's top seven cities, the INR 15–30 million segment dominated quarterly sales with around 24% share.

Each major city showed distinct preferences: Bengaluru led sales in the INR 10–15 million range, Mumbai dominated the INR 15-30 million segment, while Pune saw strongest demand in the INR 5.0-7.5 million bracket.

 

9. Tech hubs led launches

Tech cities Bengaluru, Chennai, Hyderabad, and Pune dominated with 64% of 2025 residential launches, driven by their growing office markets.

Developers kept up strong momentum by launching projects that matched what buyers wanted.

 

10. Developers bet big on luxury

Developers shifted focus to upper mid and high-end projects to match current demand patterns. High-end housing launches (properties priced at INR 10 million and above) surged 107% compared to last year, driven by strong sales in this segment.

 

11. Premium took over

This strategy paid off, with 44% of 2025 launches priced above INR 15 million. The luxury segment (apartments priced at INR 30 million and above) doubled its share from 8% in Q4 2024 to 16% in Q1 2025.

 

12. Different cities, different price segments

Each major city focuses on different premium ranges. Bengaluru concentrated on launches in the INR 15–30 million bracket, while Delhi NCR and Hyderabad targeted the higher INR 30-50 million category. Pune saw the most launches in the INR 10-15 million range.

Developers who launched the right products by reading demand and market conditions led this new growth phase in the high-end residential market.

 

13. Home prices climbed across India

Home prices in India's top seven cities kept rising in Q1 to Q3 2025, with increases ranging from 6% to 18% compared to last year across Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, and Kolkata.

 

14. Delhi NCR led the surge

Delhi NCR topped the market with an 18% price jump, while Bengaluru followed close behind with a 13% increase. Chennai, Hyderabad, and Kolkata also saw strong growth of around 9-10%.

 

15. Quality drove demand

The upward trend in home prices was driven by steady buyer demand and the launch of high-quality premium homes. Limited availability of quality projects and developers pricing new phases strategically pushed home values higher, with prices expected to keep climbing.

 

What's ahead for India's housing market?

Although Q1 2025 saw a temporary dip in housing demand, the residential sector remains positioned for strong expansion throughout 2025, building on last year's exceptional performance.

Developers plan to launch more mid-segment projects alongside premium and high-end offerings, as buyer appetite for these categories stayed strong. Market supply should keep up its current pace, fueled by more premium projects from top developers in prime locations, growing investor money, and rising demand for tech-enabled modern homes.

Established developers will continue expanding into new markets to grow their portfolios and market share, while smaller local builders are expected to maintain partnerships with bigger brands through joint ventures. Steady buyer interest, combined with a healthy supply of premium homes, should drive stable property value growth across India's housing market throughout the year.

 

Source: JLL Residential Dynamics Report (2025) | JLL Primary Research

Author & Editor: Sumedha Das