Thinking of Buying a House? Q3 Sales Fall but Prices Still Climb - Here’s Why

Thinking of buying a house? India’s housing market just saw an interesting twist, sales volumes dipped 9% in Q3 2025, but home prices still climbed 9% year-on-year, and total sales value jumped 14% to Rs 1.52 lakh crore. Data from ANAROCK shows that luxury and premium homes are driving this price rise, even as fewer overall units were sold.

Anuj Puri, Chairman – ANAROCK Group, said, “ANAROCK data shows a 9% annual housing sales decline in the top 7 cities, clocking in at approx. 97,080 units in Q3 2025 against 1,07,060 units in Q3 2024. However, sales continued to outstrip new supply in the quarter, reflecting continued market health.”

Despite fewer transactions, total sales value rose 14%, from approximately ₹1.33 lakh crore in Q3 2024 to about ₹1.52 lakh crore in Q3 2025, suggesting a significant uptick in luxury and ultra-luxury segment sales.

MMR and Pune Dominate Sales
Among the top cities, MMR (Mumbai Metropolitan Region) led the pack with 30,260 units sold, followed by Pune with 16,620 units. Together, these two western cities accounted for 48% of total sales in Q3 2025.

Chennai and Kolkata were the only two cities to post a sales increase, with Chennai surging 33% YoY and Kolkata rising 4% YoY. Other markets, including NCR, MMR, Bengaluru, and Hyderabad, saw sales contract compared to last year.

New Supply Rises 3% Annually
New housing supply across the top seven cities increased by 3% YoY, with around 96,690 units launched in Q3 2025. MMR again led with 29,565 new units, followed by Pune at 19,375 units.

While most cities reported an annual dip in new launches, Pune, Kolkata, and Chennai saw substantial supply jumps of 56% and 38%, respectively, indicating strong developer confidence in these markets.

Luxury Housing Leads New Launches
The luxury segment (>₹1.5 crore) dominated new launches, contributing 38% of total supply, while the affordable housing category (<₹40 lakh) accounted for just 16%. This indicates a clear demand shift toward premium and luxury housing, driven by rising incomes and aspirational buying.

Price Growth Moderates to Single Digits
Average residential prices in the top seven cities collectively rose 9% YoY, reaching ₹9,105 per sq. ft. from ₹8,390 per sq. ft. in Q3 2024. NCR saw the highest annual price growth at 24%, followed by Bengaluru with a 10% rise.

Despite the traditional slowdown during the monsoon and ‘shraad’ period, housing sales rose 1% quarter-on-quarter, reflecting stable market sentiment and expectations of a festive season boost in Q4.

Inventory Levels Stable
Unsold inventory across the top seven cities saw only a marginal drop, declining from 5.64 lakh units in Q3 2024 to 5.61 lakh units by the end of Q3 2025, suggesting that demand continues to absorb new supply at a healthy pace.

Puri added that the impact of the new US H1-B visa norms on the Indian housing market remains to be seen, though affordability challenges continue in many markets.

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