Introduction: The Indian Housing Market in Transition

India’s residential real estate sector is entering a crucial phase in 2025. Despite global economic uncertainties, domestic demand remains strong, driven by urbanization, job growth, and rising incomes. As reported by Hindustan Times, housing sales across major cities such as Bengaluru, Delhi NCR, Hyderabad, Chennai, Mumbai, and Pune are projected to grow between 4% and 25% year-on-year in Q3 2025.
This positive trajectory contrasts with some market slowdowns in western hubs like Thane and Navi Mumbai, underscoring a divergence between resilient and struggling markets. The picture is therefore complex: PAN-India trends show stability, but city-specific factors determine growth intensity.
Let us decode the forecast and explores what it means for homebuyers, investors, and developers in India’s top real estate markets.

1. The PAN-India picture: Sales, launches, and demand
1.1 Key Forecast Numbers
• Total projected housing sales in top 9 cities (Q3 2025): ~50,828 units
• Sales in Q3 2024 (same cities): ~45,265 units
• Expected YoY growth: 4% to 25% depending on city performance
• New launches expected (Q3 2025): ~55,033 units (slightly higher than 2024)

1.2 What does this indicate?
• Healthy absorption levels despite moderate new supply.
• Buyer confidence remains strong, even in the face of higher interest rates and inflationary pressures.
• Divergence across cities while Bengaluru, Hyderabad, and Chennai are poised for strong growth, Mumbai and Pune show mixed momentum, and Delhi NCR remains cautiously optimistic.

2. City-wise outlook
2.1 Bengaluru: Tech capital driving residential demand
Bengaluru continues to be one of India’s most resilient residential markets.
2.1.1 Drivers:
• Strong IT/ITES job growth fueling housing demand.
• Large aspirational middle-class and NRI buyers targeting premium homes.
• Suburban expansion supported by Metro, Peripheral Ring Road, and airport connectivity.
• Balanced developer strategies and controlled launches to avoid oversupply.

2.1.2 Implications:
• Buyers can expect moderate price appreciation, especially in Whitefield, Sarjapur, North Bengaluru, and Kanakapura Road.
• Investors should focus on mid-segment and premium projects with good connectivity.
• Developers will benefit from sustained demand, but must keep costs in check due to high construction inflation.

2.2 Mumbai: Demand exists, but affordability is a challenge
Mumbai, India’s financial capital, remains the most expensive housing market. Yet affordability constraints and oversupply in certain micro-markets weigh on sales.
2.2.1 Drivers:
• High-income population and corporate presence keep demand intact in prime zones (South Mumbai, Bandra, Powai).
• Government initiatives like redevelopment, SRA projects, and infrastructure upgrades (Coastal Road, Metro lines) enhance appeal.

2.2.2 Challenges:
• Affordability ceiling: many middle-income buyers are priced out.
• Sales in Thane (-28%) and Navi Mumbai (-6%) are projected to decline.
• Developer margins under pressure due to high land prices.

2.2.3 Implications:
• Premium and luxury continue to thrive, but mid-income demand is fragile.
• Redevelopment projects will play a key role in sustaining supply and sales.
• Buyers should evaluate resale markets as opportunities may arise from slower absorption in certain pockets.

2.3 Pune: Balancing growth and correction
Pune, traditionally considered one of the most stable markets, is projected to see a 16% decline in sales YoY in Q3 2025.
2.3.1 Drivers:
• Strong IT, manufacturing, and education sectors drive housing demand.
• Good mix of affordable, mid-segment, and luxury offerings.

2.3.2 Challenges:
• Oversupply in some micro-markets (Hinjewadi, Wagholi) has slowed absorption.
• Buyer sentiment impacted by rising ticket sizes in newer launches.

2.3.3 Implications:
• End-user driven demand remains strong in areas like Kharadi, Baner, Wakad.
• Investors should adopt caution; only projects with strong rental potential or infrastructure linkages may yield solid returns.
• Developers must pace launches carefully to avoid excess inventory.

2.4 Delhi NCR: Diversified but fragmented
The NCR’s vast geography makes its real estate performance uneven.

2.4.1 Drivers:
• Gurgaon and Noida continue to attract corporate workforce demand.
• Infrastructure upgrades (Dwarka Expressway, Delhi-Mumbai Expressway links, Metro extensions) boosting connectivity.
• High demand for plotted developments and independent floors.

2.4.2 Challenges:
• Policy and legal hurdles, especially in land acquisition and clearances.
• Price sensitivity among buyers in Ghaziabad and Faridabad.

2.4.3 Implications:
• Gurgaon luxury and mid-segment projects will continue momentum.
• Noida’s residential demand will benefit from Jewar airport development.
• Buyers should focus on projects by reputed developers given NCR’s history of stalled projects.

2.5 Hyderabad: Consistent outperformer
Hyderabad has been one of the strongest performing residential markets in India over the last decade.

2.5.1 Drivers:
• Lower property costs compared to Bengaluru or Mumbai.
• Growing IT, pharma, and industrial employment hubs.
• Stable governance and clear land policies.
• High demand for luxury and gated communities.

2.5.2 Implications:
• Strong growth expected in Kondapur, Gachibowli, Kokapet, Kompally.
• Investors benefit from relatively low entry cost and high appreciation potential.
• Developers see Hyderabad as a safer market with end-user demand dominating.

2.6.Chennai: Steady and end-user driven
Chennai remains a conservative but reliable housing market.

2.6.1 Drivers:
• Strong end-user demand from manufacturing and IT workforce.
• Balanced supply-demand equation as developers launch cautiously.
• Infrastructure upgrades such as metro Phase II improving accessibility.

2.6.2 Challenges:
• Flooding issues and civic infrastructure strain affect certain zones.
• Price-sensitive market with slower luxury absorption compared to Hyderabad or Bengaluru.

2.6.3 Implications:
• Affordable and mid-segment remain the backbone of demand.
• Micro-markets such as OMR, Porur, Pallikaranai expected to perform well.
• Investors should target long-term capital appreciation rather than quick flips.

3.Broader implications for PAN-India residential real estate
1. Inventory Levels Shrinking: Sales outpacing launches in multiple markets indicate reduced unsold inventory, which boosts developer confidence.
2. Price Movement:
• Cities like Bengaluru, Hyderabad, and Chennai may witness upward price movement in Q3-Q4 2025.
• Mumbai and Pune may see stagnation or marginal corrections in select micro-markets.
3. Investor vs End-User Dynamics:
• Southern cities remain end-user driven, lowering speculative risk.
• Mumbai and NCR still attract investors, but with higher risks due to affordability and regulatory bottlenecks.
4. Financing Conditions: Home loan rates remain critical; if rates hold steady or soften, demand will sustain; sharp hikes may dampen momentum.

4.Risks Ahead
• Interest rate hikes → EMI burden could stall sales momentum.
• Regulatory hurdles → Delays in approvals, environmental clearances.
• Infrastructure delays → Buyer confidence may fall if projects remain incomplete.
• Global economic slowdown → May impact IT/ITES jobs in Bengaluru, Hyderabad, Pune.
• Over-supply risk → Particularly in Pune and NCR micro-markets.

5. What should a stakeholder do?
5.1 For Buyers:
• Enter the market early in Bengaluru, Hyderabad, Chennai before prices firm further.
• Exercise caution in Pune and Navi Mumbai, where oversupply risk is higher.
• In Mumbai, explore redevelopment and resale opportunities for better value.

5.2 For Investors:
• Focus on Hyderabad, Bengaluru, Chennai for high growth potential.
• Diversify across 2–3 cities rather than over-committing to one.
• Watch infrastructure-led growth corridors like Dwarka Expressway (NCR) or Peripheral Ring Road (Bengaluru).

5.3 For Developers:
• Calibrate launches to demand absorption levels.
• Focus on execution and timely delivery to build trust.
• Explore innovative financing/payment plans to address affordability.

India’s housing market in 2025 reflects both strength and divergence. Cities like Bengaluru, Hyderabad, and Chennai are powering ahead with double-digit growth, while Mumbai and Pune are struggling with affordability and oversupply. Delhi NCR remains a mixed bag with strong nodes like Gurgaon and Noida balancing weaker segments.
For buyers and investors, the message is clear: city and micro-market selection matters more than ever. While the PAN-India picture is broadly optimistic, the opportunities (and risks) are local. Developers, meanwhile, must balance cautious launches with aggressive delivery and credibility.
The coming quarters will test the resilience of India’s residential real estate and those who make smart, informed decisions today stand to benefit the most.

FAQs
1. Which city will see the highest housing sales growth in 2025?
Hyderabad and Bengaluru are expected to lead, with potential double-digit growth.

2. Will property prices rise in Mumbai in 2025?
Prices may remain stable in Mumbai due to affordability issues, though premium micro-markets will continue appreciating.

3. Is Pune still a good market for investment?
Yes, but investors must choose carefully; oversupply is a risk. End-users are safer in Pune than short-term investors.

4. Should I wait or buy in 2025?
With inventory shrinking in Bengaluru, Hyderabad, and Chennai, waiting may mean higher costs. Buyers in Mumbai and Pune can afford to wait for corrections in specific pockets.

Source: HT news published on 28^th September 2025; JLL Primary Research

Author & editor: Sumedha Das