India’s Housing Market Slows Down in Early 2025
India’s Housing Market Slows Down in Early 2025
The Indian real estate market saw a major slowdown in the first three months of 2025, with home sales in the top seven cities dropping by 28% compared to the same time in 2024. According to real estate consultancy Anarock, this decline is mainly due to rising property prices and economic uncertainties worldwide.
Fewer Homes Sold Across Major Cities
In Q1 2025, only 93,280 homes were sold, a big drop from the 130,170 units sold in Q1 2024. The study covered Mumbai Metropolitan Region (MMR), Bengaluru, Pune, National Capital Region (NCR), Hyderabad, Chennai, and Kolkata.
Rising Prices Despite Lower Sales
Even though fewer homes were sold, property prices went up significantly, increasing between 10% and 34%. This price rise was driven by new luxury and ultra-luxury projects and strong demand in premium housing.
- NCR saw the biggest price hike, exceeding 34%, followed by Bengaluru with over 20% growth.
City-Wise Sales Drop
MMR & Pune made up 51% of total home sales, but both saw declines:
- MMR: Sales fell 26% compared to 2024.
- Pune: Sales dropped over 30%.
- Hyderabad recorded the steepest fall, with a 49% drop in sales.
- Bengaluru had the smallest decline, at 16%.
New Home Launches Declined Slightly
More than 100,000 new housing units were launched across the top seven cities, but this was still 10% lower than in Q1 2024 when 1,10,865 units were introduced.
- MMR & Bengaluru led in new projects, making up 52% of total launches.
- Some cities saw growth in new supply:
- NCR (+53%)
- Bengaluru (+27%)
- Kolkata (+26%)
- Others saw a decline:
- Hyderabad (-55%)
- MMR (-9%)
Unsold Homes Decreased Overall
The total unsold inventory fell by 4%, from 580,890 units in Q1 2024 to 559,810 units in Q1 2025.
- Pune had the biggest drop in unsold homes (-16%).
- Bengaluru, however, saw a sharp 28% increase in unsold stock, reaching 58,660 units.
Challenges Ahead for the Housing Market
Experts say higher home prices, global economic struggles, and geopolitical tensions have made buyers hesitant. These challenges continued to affect India’s real estate market in early 2025, making recovery uncertain.
