Rising construction costs and developers’ shift toward premium housing slowed new housing project launches across India’s major cities in 2025, according to JLL India’s latest residential market report. The report said developer focus on higher-margin premium projects, elevated construction costs, and steady buyer demand pushed up housing prices across all key markets.
Between January – September 2025, India’s top seven cities saw 2,25,001 new homes launched, down 1% from the same period in 2024. Developers continued to focus on homes priced above Rs 1 crore, while overall new supply stayed measured amid higher costs and uncertain economic conditions.
“While premium housing saw strong demand, developers were cautious with new mid-range and affordable launches… Q3 2025 brought 70,915 new homes to market, totalling 2,25,001 units for the first nine months, down just 1% annually,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head – Residential Services, India, JLL.
The report added that slower launches helped balance unsold inventory and improve absorption, showing a maturing housing market.
Chennai, Kolkata, Pune and Bengaluru record strong supply growth
Four cities Chennai, Kolkata, Pune and Bengaluru recorded strong growth in new housing supply during January–September 2025.
According to JLL data,
- Kolkata saw the highest rise at 168%, with 15,099 new units.
- Chennai followed with 38% growth, reaching 17,781 units.
- Pune rose 23% to 43,360 units.
- Bengaluru grew 11% to 47,237 units.
Launches fell in other large markets Hyderabad (-32%), Delhi NCR (-17%), and Mumbai (-20%).
Overall, growth in the southern and eastern cities offset declines elsewhere, keeping the total new supply almost flat compared to last year.
Overall home sales down
Total home sales across India’s top seven cities fell 12% year-on-year to 2,02,756 units in the first nine months of 2025.
JLL said the decline came from a mix of factors high property prices, monsoon slowdown, a pre-festive dip in activity, and general economic uncertainty.
Despite this, premium homes continued to perform well. Homes priced at Rs 1 crore and above recorded 4% year-on-year growth in sales during the same period.
Premium housing continues to grow
Apartments priced above Rs 1 crore made up about 62% of total sales during January–September 2025, up from 52% in the same period last year. The Rs 1.5 crore–3 crore price band saw the strongest demand, with a 10% increase in sales. Meanwhile, homes priced below Rs 1 crore saw sales drop 30%, lowering their share from 48% to 38%, as per the report.
“January–September 2025 showed a shift toward a ‘value-driven’ market with premium housing demand driving overall sales despite a 12% Y-o-Y drop in total units sold,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Bengaluru, Mumbai and Pune lead sales
Among the top seven cities, Bengaluru, Mumbai and Pune together accounted for more than 60% of total home sales between January and September 2025, as per the report.
- Bengaluru sold 45,815 units,
- Mumbai sold 42,398 units, and
- Pune sold 40,269 units.
In the July–September quarter alone, home sales across all cities stood at 67,980 units, down 9% year-on-year. Only Pune (14%) and Chennai (13%) saw growth over the same quarter last year, as per JLL India.
Prices rise across all major cities
Home prices continued to rise across India’s seven big cities in Q3 2025, increasing between 6% and 16% year-on-year, the report added.
- Kolkata recorded the highest jump at 16%,
- Chennai followed at 14%,
- Delhi NCR and Bengaluru both rose 13%.
JLL said this price increase was mainly due to developers’ focus on premium projects, higher building costs, and sustained buyer interest in these segments.
Market moving toward balance
According to JLL India, the housing market is moving toward a more balanced stage after two years of strong growth.
The report said that while high property prices are creating affordability concerns and slowing overall sales, prices are likely to stay firm because of strong luxury demand, limited supply, and developers’ pricing control.
“Home prices will keep rising due to strong luxury demand, low inventory, and developers’ pricing power, even as sales moderate,” the report stated.
JLL added that average transaction values are expected to increase as more buyers choose premium homes. It also said that major listed developers are gaining market share due to their brand reputation and delivery record, while some are expanding into mid-income projects to reach a wider range of buyers.