• Demand for 1-2 BHKs rises to 54% as affordability pressures mount; Residential prices surge across major markets with Pune (+41.4% YoY) and Mumbai (+29.6% YoY) leading growth
  • Delhi records strongest demand increase at +10.3% QoQ, while supply expands modestly at +1% QoQ nationwide

New Delhi : Magicbricks, India’s leading real estate platform, today released its PropIndex report for July–September 2025, highlighting key shifts in the country’s housing market. Despite affordability challenges, the quarter saw demand inch up 3.1% QoQ, with buyers increasingly turning to smaller homes. The share of 1-2 BHK units surged to 54% of overall demand, reversing a two-year decline and underscoring the renewed focus on affordability.

While overall supply grew just 1% QoQ (–4.5% YoY), prices continued their upward trajectory. Pune (+41.4% YoY), Mumbai (+29.6% YoY), and Greater Noida (+27.3% YoY) recorded the sharpest annual price appreciation, driven by resilient demand and limited new launches. Notably, under-construction homes commanded a higher premium than ready-to-move units, with UC prices in Pune rising +29.1% QoQ compared to +15.8% for RM homes.

Regionally, the Delhi NCR market stood out with Delhi demand surging +10.3% QoQ, alongside Noida (+6.3% QoQ) and Greater Noida (+3.8% QoQ), boosted by large-scale infrastructure projects like the Dwarka Expressway and RRTS corridors. The Mumbai Metropolitan Region (MMR) continued to see resilient buyer activity despite supply contractions (Mumbai –9.7% QoQ, Navi Mumbai –10.7% QoQ), fueling significant price momentum. In the South, Bengaluru maintained its growth momentum with demand up +5.9% QoQ and prices rising +3.9% QoQ, while Chennai experienced a –5.4% QoQ dip in demand even as fresh launches lifted supply by +1.9% QoQ.

Sudhir Pai, CEO, Magicbricks, said, “The July–September 2025 quarter reinforced a fundamental market shift toward compact and mid-segment housing. While affordability constraints are shaping buyer behavior, infrastructure-led optimism and evolving consumer aspirations continue to fuel demand across key micro-markets. Developers who align product offerings with affordability and lifestyle needs will define the next phase of sustainable housing growth.”

The PropIndex Q3 2025 findings reaffirm that India’s residential market is entering a phase of measured growth, shaped by affordability, infrastructure expansion, and evolving buyer aspirations. As compact homes gain ground and under-construction projects attract premiums, the balance between demand and supply will remain crucial in sustaining momentum. Looking ahead, housing activity is expected to be driven less by speculative trends and more by pragmatic, end-user decisions, positioning real estate as a stable and enduring investment class.