South India Drives Residential Sales Growth Amid National Slowdown

Residential property sales in South India have surged sharply during the July–September quarter, emerging as a bright spot in an otherwise muted national housing market. Hyderabad, Bengaluru, and Chennai together recorded a 47% increase in home sales compared to the same period last year, according to real estate consultancy PropTiger, now part of Aurum PropTech Ltd.

Hyderabad led the growth, with 17,658 units sold, marking a 53% jump from 11,564 units a year ago. Bengaluru followed, reporting 13,124 homes sold, an 18% increase over the previous year. Chennai demonstrated the most dramatic growth, with sales more than doubling to 7,862 units from 3,560 units in the corresponding period of 2024. Combined, these three southern cities accounted for 38,644 housing transactions during the quarter.

In contrast, India’s top-eight primary housing markets experienced a marginal 1% decline in sales, mainly due to weaker demand in Mumbai, Pune, and Delhi-NCR. Mumbai Metropolitan Region (MMR) sales fell 22% to 23,334 units, Pune saw a 28% dip to 12,990 units, and Delhi-NCR declined 21% to 7,961 units. Ahmedabad recorded a slight 5% drop, while Kolkata was an exception, showing a 33% rise to 3,729 units.

Aurum PropTech Executive Director Onkar Shetye attributed the southern cities’ growth to stable interest rates, proactive policy reforms such as GST reduction on cement, and a favourable market environment that has bolstered developer confidence. “The upcoming festive quarter will be a key indicator of consumer demand and a test of the market’s ability to maintain momentum amid emerging affordability challenges, particularly in mid- and entry-level segments,” he noted.

South India’s strong performance underscores the region’s resilience and growing appeal among homebuyers, positioning it as a key driver of the national housing market. With developers capitalizing on favourable conditions and consumers showing renewed interest, the southern residential real estate sector is poised for sustained growth, even as other metros adjust to shifting demand patterns.