Archive · 17 Nov 2025
India's Housing Market Cools, Premium Segment Surges
In India, the home-building business is slowing down a bit after going really fast for two years.
Builders are making more expensive homes for rich people and people from other countries, but they're making fewer homes for middle-class families.
This is good for regular families because they can now ask for a lower price and have more time to choose a home.
Even though prices aren't going up as fast as before, most people still think they will stay the same or go up a little.
Office buildings are still doing well, which makes people feel more secure about their jobs and incomes.
This makes it a better time for families to buy a home without feeling rushed.
India's housing market shows signs of cooling in Q3 2025 after two years of rapid growth.
Developers are shifting focus to premium housing launches, while slowing down supply for mid-income projects.
Ordinary homebuyers are gaining more negotiating power due to moderated mid-income supply and stabilized price expectations.
The office market remains resilient, with high expectations for stable or rising rents, boosting confidence in major cities.
Funding and liquidity conditions are stable, allowing buyers and developers to plan cautiously.
- Who
- Developers and homebuyers in India.
- What
- India's housing market shows signs of cooling, with a slowdown in mid-income launches and a surge in premium housing supply, leading to increased buyer negotiating power.
- When
- Q3 2025
- Where
- India, with key metros like Bengaluru, Hyderabad, and Pune showing resilience in office markets.
- Why
- Developers are prioritizing premium projects due to sustained high-income and NRI demand, while mid-income launches have slowed, creating a more balanced market for buyers.
Developer Strategy: Premium Focus
Buyer Perspective: Mid-Income Challenges
New Launches
Developer Strategy: Premium Focus
Builders are concentrating new launches in the premium housing segment.
Buyer Perspective: Mid-Income Challenges
Mid-income housing supply has slowed down, giving ordinary homebuyers more negotiating power but fewer options.
Price Expectations
Developer Strategy: Premium Focus
92% of stakeholders expect prices to remain stable or rise, a slight decrease from 96% a year ago.
Buyer Perspective: Mid-Income Challenges
Buyers are resisting higher valuations in non-premium categories, indicating a moderation in price surges seen in 2023-2024.
Market Segment Drivers
Developer Strategy: Premium Focus
Premium housing will continue to expand due to strong demand from high-income earners and Non-Resident Indians (NRIs).
Buyer Perspective: Mid-Income Challenges
The strength in the premium segment does not automatically translate to mid-income pricing due to differing market drivers.
- Report Name
- Knight Frank NAREDCO Sentiment Index
- Time Period
- Q3 2025
- Current Sentiment Score
- 59 (up from 56)
- Future Sentiment Score
- 61 (steady)
- Price Expectation (Stable/Rise)
- 92% of stakeholders
- Office Rent Expectation (Stable/Rise)
- 95% of respondents
- New Office Supply Expectation (Steady/Increase)
- 78% of respondents
- Leading Zone (Sentiment)
- South (62)