Housing Sales Decline 9% in Q3 2025, Chennai Defies Trend with 33% Growth

India’s housing market witnessed a mixed performance in the third quarter of 2025 (Q3 2025). According to real estate consultancy Anarock, overall housing sales across the top seven cities fell 9% year-on-year to 97,080 units, primarily due to affordability pressures, rising costs, and uneven demand. However, Chennai emerged as a bright spot, recording a remarkable 33% increase in sales, while Kolkata also posted a modest 4% rise.

Despite the dip in overall volumes, the value of housing sales climbed 14% to Rs 1.52 trillion, up from Rs 1.33 trillion a year earlier. The surge was largely driven by strong demand for luxury and ultra-luxury homes priced above Rs 1.5 crore, which accounted for 38% of new launches. Premium housing (Rs 80 lakh to Rs 1.5 crore) contributed 24%, mid-segment homes (Rs 40–80 lakh) made up 23%, while affordable housing remained at 16%.

Regionally, the Mumbai Metropolitan Region (MMR) led sales with about 30,260 units, followed by Pune with 16,620 units. Together, these western cities accounted for nearly half of the total transactions. Anuj Puri, Chairman of Anarock Group, noted that while most cities saw annual declines, Chennai and Kolkata stood out with positive growth.

On the supply side, new housing launches rose 3% year-on-year to 96,690 units. Demand outpaced supply, helping to keep the demand-supply balance steady. Unsold inventory showed a marginal decline, falling from 5.64 lakh units in Q3 2024 to 5.61 lakh units in Q3 2025.

Prices, meanwhile, continued their upward momentum. Average residential property rates across the top cities increased 9% year-on-year to Rs 9,105 per square foot. NCR led with a steep 24% rise, followed by Bengaluru with 10% growth.

Looking ahead, developers expect festive demand in the coming months to lift sales, especially with several new project launches lined up. However, affordability concerns remain, particularly as price growth, though moderating, continues to outpace income levels. Market watchers are also closely monitoring potential impacts of the new US H1-B visa norms on Indian housing demand.