Housing Sales Drop 28% in Q1 2025

India’s residential real estate sector witnessed a sharp deceleration in Q1 2025, with housing sales across the top 7 cities dropping 28% year-on-year, according to ANAROCK Research. Rising property prices, combined with global economic headwinds, have weakened buyer sentiment, reversing the growth seen in 2024.

Sales Slump Across Major Cities

Approximately 93,280 units were sold in Q1 2025, down from 1.30 lakh units a year ago. The Mumbai Metropolitan Region (MMR) and Pune contributed 51% to overall sales, but both cities recorded notable declines; MMR fell by 26% and Pune by over 30%.

Among other metros, Hyderabad posted the steepest drop in housing sales, down 49% YoY. Bengaluru was relatively resilient, recording the smallest dip at 16%.

New Launches Fall 10%, Luxury Segment Expands

New residential launches declined by 10% from 1,10,865 units in Q1 2024 to 1,00,020 units in Q1 2025. Despite the overall fall, developers continued to focus on the premium end of the market. Homes priced above ₹1.5 crore accounted for 42% of new supply, while the ₹80 lakh to ₹1.5 crore segment made up 27%.

Interestingly, NCR, Bengaluru, and Kolkata defied the overall trend. New launches rose by 53% in NCR, 27% in Bengaluru, and 26% in Kolkata. On the other hand, Hyderabad saw the biggest decline, with new launches down by 55%.

Property Prices Surge Despite Weak Demand

Despite a slowdown in sales and launches, property prices surged by 17% YoY. NCR led the price increases with a 34% jump, followed by Bengaluru at 20%. The upward movement in prices has been attributed to rising input costs and sustained demand for high-end housing.

Unsold Inventory Trends Mixed

Overall unsold housing inventory declined by 4% YoY to 5.60 lakh units at the end of Q1 2025. Pune recorded the sharpest fall in unsold stock at 16%, while Bengaluru witnessed a 28% increase in unsold inventory, an unusual trend given its historically stable demand.

Conclusion

India’s housing market has entered a cautious phase in Q1 2025, with sales and launches declining across most major cities. While the luxury segment continues to attract interest, rising prices and economic uncertainties appear to be deterring mid-income homebuyers. The contrasting trends across cities highlight the fragmented nature of recovery in the real estate sector.

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