India’s Residential Property Market Maintains Strong Momentum in 2025 Amid Rising End-User Demand

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India’s residential real estate sector continues to show robust performance in 2025, with home sales, new launches, and property prices on a steady rise across major cities. According to industry data, the first half of 2025 recorded over 200,000 housing units sold, with Mumbai Metropolitan Region (MMR), Pune, and Bengaluru leading in volume and demand.

Driven by end-user buying and growing aspirations for home ownership, the sector has remained resilient despite inflationary pressures and rising interest rates. Developers have responded with continued project launches, particularly in mid-income and premium segments.

The report shows:

• Average residential prices have increased by 6–10% year-on-year in most Tier-1 cities
  
• New project launches in H1 2025 exceeded 150,000 units, signaling strong developer confidence
  
• Affordable housing demand remained steady, while premium and luxury segments saw a notable uptick in metros like Delhi-NCR and Mumbai
  

Mumbai continued to lead in terms of sales and new launches, followed closely by Pune and Hyderabad. Notably, Tier-2 cities such as Lucknow, Jaipur, and Coimbatore also witnessed increased traction due to infrastructure growth and digital connectivity.

A key factor behind the market’s performance is a shift toward ready-to-move-in and near-completion projects, driven by improved transparency and buyer preference for reduced risk. Regulatory reforms under RERA and the digitization of land records have enhanced consumer confidence.

Anarock Group Chairman Anuj Puri commented, “The housing market in 2025 reflects stability backed by real demand. Unlike the speculative trends of the past, today’s buyers are informed and focused on long-term value.”

Rental yields have also improved marginally across major cities, with demand for rental housing supported by a return to office and steady migration into urban centers.

While input costs and policy reforms remain watchpoints, analysts project that India’s residential market will maintain its growth trajectory through FY26, supported by strong macroeconomic fundamentals and urban housing needs.