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.
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 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%.
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.
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.
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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Published on: Mar 28, 2025, 7:29 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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