India's Property Market Hits New High: Up to 19% Price Jump in Key Metros, Driven by Premium Segment

India’s big-city homebuyers faced another round of price escalation in the July–September quarter, with most major markets recording a notable jump in residential rates. New data from PropTiger suggests that the cost of owning a home in the country’s metropolitan centers has climbed far more than expected, with prices rising anywhere between 7 to 19 percent over the past year.

What makes this quarter interesting is that the price surge came even though the number of homes sold barely changed. Buyers seem to be gravitating toward better locations, larger layouts and finished homes, which has pushed the overall value of transactions higher despite the flat sales volume.

Delhi-NCR and Southern Markets Drive the Increase

Delhi-NCR continues to stay ahead of the pack. The region posted a year-on-year climb of nearly 19 percent, taking the average price to roughly ₹8,900 per sq ft. Local brokers say the appetite for premium homes hasn’t slowed down, especially in areas seeing new metro links, road expansions or commercial hubs.

Further south, Bengaluru and Hyderabad recorded their own strong runs.

• Bengaluru’s average price now sits around ₹8,870 per sq ft, supported by stable demand from IT professionals and families upgrading to larger homes. The city also posted a solid quarterly rise, pointing to steady momentum through the year.

• Hyderabad wasn’t too far behind, with a 13 percent jump that brought prices near ₹7,750 per sq ft. Market watchers say that while the city has seen continuous supply additions, demand from end-users has kept up.

Other large markets, including MMR, Pune, Chennai and Kolkata, didn’t match the same scale of appreciation but still reported steady, single-digit increases. Developers in these regions say buyers remain confident but more selective, often comparing multiple projects before deciding.

Value Surges Despite Stagnant Volume

The overall number of homes sold across the eight monitored cities came in at about 95,500 units. That’s just a one percent dip from the same quarter last year.

The money flowing into real estate, though, told a very different story. The total transaction value climbed to nearly ₹1.52 lakh crore, which is a sharp rise of about 14 percent.

This widening gap between volume and value isn’t new but is becoming more visible now. Developers say that mid-income buyers are more cautious, while those with stable incomes are choosing higher-ticket homes that offer a mix of space, amenities and faster possession timelines.

Why Prices Keep Rising Up?

A mix of familiar and new factors contributed to the upward movement:

• Costlier building materials continue to push construction budgets upward.

• Ready-to-move homes remain limited in supply, making them more expensive.

• Infrastructure upgrades across specific pockets have added to land values.

• Developers are leaning toward premium projects, expecting better margins and clearer demand.

Professionals tracking the sector point out that developers, especially in large cities, are avoiding smaller, low-margin projects. Instead, they are building toward a consumer group that has weathered economic swings better over the past few years.

Market Outlook and Affordability

For developers, the current environment appears encouraging. Value-based growth is likely to continue as long as demand for larger and premium homes remains firm.

Homebuyers, especially first-timers, may find it slightly harder to enter the market if prices keep rising at this pace. Any increase in borrowing costs could make affordability a more pressing concern in the coming months.

Even so, analysts say the underlying demand remains strong and is driven mostly by end-users rather than speculative investors. For now, that stability is keeping the market on a steady upward path.

City-Wise Price Overview: Q3 2025,

 Source: The Economic Times