1. Builder Spotlight: Sobha’s Profit Soars on Premium Demand
Bengaluru-based Sobha Ltd reported its highest quarterly net profit ever—₹136.2 crore, more than double the previous year—driven by robust uptake of premium apartments. Revenue surged 33% to ₹852 crore in Q1 FY 2026, driven by larger, amenity-rich units and strategic pricing. Despite a cooling macro environment, Sobha’s record sales in the June quarter spotlights the resilience of India’s high-end housing segment.
Builders nationwide now calibrate launch timing closely with demand signals as regulatory delays subside, making 2025 a potential “turnaround year” for developers and investors.
2. Swap to Buyers’ Market: Supply Increases & Prices Hold Steady
For the first time in many quarters, housing supply growth is overtaking demand. Newly reported data from eXp India and Housing.com indicate listings across major cities—including Delhi NCR, Mumbai, Bengaluru—rose 9–12% since January 2025, pivoting negotiating power to buyers.
This shift follows the RBI’s cumulative 100 bps repo rate cut, improved liquidity, and developer optimism. While demand remains steady, margins are tightening for sellers, which may lead to greater price flexibility.
3. Premiumization Continues: ₹1 Crore+ Homes Account for Nearly Half of Sales
In the first half of 2025, nearly 49% of all homes sold in major markets were priced above ₹1 crore—totaling 83,400 transactions. Bengaluru, Delhi NCR, and Mumbai led this premium demand wave, with the segment growing 17% year-on-year.
Despite falling transaction volume in mid- and lower-tier segments, premium housing remained resilient. Inventory in ultra-luxury categories (₹20–50 crore) expanded—but sales absorption was slower, reflecting niche demand dynamics.
4. Surging Kolkata Launches vs. Modest Sales Performance
Kolkata recorded a 105% surge in residential project launches in H1 2025—adding over 9,000 units, including a staggering 325% uptick in ₹1 crore+ project inventory. Yet actual home sales declined 29% year-on-year, totaling 6,747 units, though the premium segment registered a 70% sales rise, revealing sales skew toward aspirational categories.
The surge in supply contrasts with caution in mid- and affordable tiers, as developers aim to match evolving preferences and regulatory clarity.
5. Regulatory Momentum: UP RERA, Tamil Nadu Valuation Reforms
UP RERA Holds Ground: ₹1,410 Crore Recovered for Buyers
The Uttar Pradesh Real Estate Regulatory Authority facilitated refunds and enforcement across 5,700 cases, recouping buyer funds worth ₹1,410 crore. The recovery underscores RERA’s strength in dispute resolution and its role in restoring buyer confidence.
Tamil Nadu Revamps Property Valuation Rules
Effective June, Tamil Nadu introduced a “composite value” framework for apartments—inked into revised stamp duty guidelines and enabling more flexible updates throughout the year. The new rules incorporate super built-up area, undivided land share, road width, amenities, and build quality into valuation. Authorities expect recalibration of guideline values to enhance transparency and discourage under-reporting in urban deals.
Homebuying Trends to Watch
- Price Negotiability: Will developers start offering discounts or flexible payment plans in response to buyer power?
- Rate-Sensitive Demand: Will continuing repo cuts support growth in home loans and mid-segment uptake?
- Policy Impact: Will RERA enforcement and fair valuation reforms spread across more states?
- Geographic Shifts: Will tier‑2/3 city supply growth gain traction similar to premium urban demand?
Inventory Absorption: Can new supply meet real demand in under-served segments like ₹40‑80 lakh homes?
Final Word
On July 26, 2025, India’s home buying market is in transition. Affordability pressures persist for mid and lower end buyers, even as premium segments dominate sales. Regulatory interventions—from UP RERA enforcement to Tamil Nadu’s valuation overhaul—are shaping a more transparent market.
With increasing launch activity but declining overall sales, the balance of power is shifting to buyers. For investors and aspirants alike, 2025 offers opportunity—but also underscores the need for strategic discipline amid evolving housing dynamics.
Let me know if you’d like a deep dive into a city-specific report, loan outlook, or developer strategy forecast.
