India Market Monitor Q2 2025 - Residential

India’s residential real estate market witnessed a 9% Q-o-Q growth in new unit launches as sales remained stable in Q2 2025. The mid-end and high-end* housing segments continued capturing the attention of home buyers, constituting about 58% of the total sales across the top seven cities during the quarter.

Despite a marginal cyclical moderation observed in H1 2025 on an annualised basis, India’s housing market is poised to maintain a steady course in the coming quarters, especially backed by the upcoming festive season. Also, the supportive environment from budgetary tax relief, announced in February 2025, and the Reserve Bank of India's recent monetary easing measures in the first six months of the year, is anticipated to transpire into increased affordability for homeowners.

The mid- and high-end segments are expected to retain their prominence, with buyer and developer interest particularly converging around the new strategic “sweet spot” of homes priced within the INR 1-2 crore bracket.

However, elevated capital values amidst the uncertainty around the macro-economic situation could result in a wait-and-watch mode for homebuyers. Hence, it is important for developers to keep a watch on any further price escalations in the coming quarters.

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