Pune Leads 9% Price Rise as Premium Housing Pushes Property Rates Up Across India’s Top Cities in Q3 2025

India’s residential real estate market continued its upward momentum during the July to September quarter of 2025 as homebuyers increasingly opted for premium housing despite a slight decline in sales volume. A new quarterly analysis by PropTiger.com, a digital real estate transaction and advisory platform owned by Aurum PropTech, shows that property prices across the country’s top eight housing markets increased between 7 and 19 percent year-on-year. The surge has been attributed to strong end-user demand, rising construction costs, and a shortage of quality ready-to-move-in homes.

The report titled Real Insight Residential: July to September 2025 highlights that the weighted average property price across India’s major cities continued to climb steadily, indicating strong confidence among developers and a clear willingness among buyers to invest in high-value assets that continue to appreciate.

Delhi NCR Leads with Strongest Growth

Among all major markets, Delhi NCR registered the highest growth with a 19 percent annual increase in property prices. The average home price rose from ₹7,479 per square foot in Q3 2024 to ₹8,900 per square foot in Q3 2025. This growth was supported by a steady demand for luxury properties and rapid infrastructure upgrades across the region. Quarter on quarter, Delhi NCR also reported a 9.8 percent rise, which was the highest among all cities.

Bengaluru and Hyderabad Maintain Double-Digit Momentum

Bengaluru continued to show strong growth with a 15 percent year-on-year price increase. The average property price rose to ₹8,870 per square foot from ₹7,713 during the same period last year, while quarter-on-quarter growth stood at an impressive 12.6 percent.

Hyderabad also maintained solid momentum with a 13 percent annual increase and a 4.6 percent quarterly rise, pushing prices to ₹7,750 per square foot compared to ₹6,858 in Q3 2024.

Pune and Other Cities Record Steady Single-Digit Growth

Western and southern markets remained key contributors to the overall housing market activity. Pune recorded a 9 percent annual price increase, with the average rate rising to ₹7,250 per square foot from ₹6,651 last year, along with a 2 percent quarterly rise.

Other cities also displayed steady growth.

Chennai recorded a 9 percent annual increase with the average price reaching ₹7,173 per square foot.

Kolkata’s prices rose by 8 percent to ₹6,060 per square foot.

Ahmedabad saw a 7.9 percent jump with average prices touching ₹4,820 per square foot.

The Mumbai Metropolitan Region continued to have the most expensive real estate in the country with average prices increasing by 7 percent to ₹13,250 per square foot from ₹12,383 in Q3 2024.

Premiumisation Defines the Market Trend

Despite a slight 1 percent decline in housing sales volume, which stood at 95,547 units during Q3 2025, the total value of properties sold surged by 14 percent to reach ₹1.52 lakh crore. This clearly indicates a market shift toward premiumisation, where buyers are choosing high-end homes over budget options.

Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, said the steep rise in property prices in regions such as Delhi NCR highlights sustained demand for quality homes. He explained that rising disposable incomes supported by affordable home loan rates and GST reforms have strengthened the purchasing power of homebuyers, resulting in a clear preference for premium housing.

Developers Show Cautious Optimism with New Launches

The quarter witnessed 91,807 new housing units being launched across the top eight cities. Although this represented a marginal 0.1 percent annual decline, it showed a healthy 9.1 percent increase compared to the previous quarter. This indicates that developers are launching projects carefully but with a strong focus on higher-value developments that meet current market demand.

Most of the new supply was concentrated in the western and southern parts of the country. The Mumbai Metropolitan Region contributed 26.9 percent of all new launches, followed by Pune with 18.7 percent and Hyderabad with 13.6 percent. Together, these three cities accounted for 59.2 percent of the total new housing inventory introduced during the July to September quarter.

The eight key housing markets covered in the report include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR, and Pune. Price appreciation across all these cities, ranging from 7 to 19 percent, shows that India’s housing sector is maturing steadily. Buyers are now prioritizing long-term value, location quality, and lifestyle benefits over short-term affordability.

Developers are responding by aligning their strategies with this demand for premium homes while infrastructure improvements continue to reshape major urban centers. The combination of resilient demand, limited supply, and rising aspirations ensures that the housing market remains on a strong growth trajectory.