Correction in offing? Housing sales dip 28% in India, launches down 10%

Approx. 93,280 units sold across the top 7 cities in Q1 2025 against over 1.30 lakh units in Q1 2024

Skyrocketing residential prices coupled with geopolitical headwinds have slowed the Indian housing market’s bull-run in Q1 2025. Latest data from property consulting firm Anarock shows that the year's first quarter saw sales drop 28% across the top seven cities in India against the same period in 2024. Approximately 93,280 units were sold in Q1 2025 in the top 7 cities, in sharp contrast to all-time high sales of over 1.30 lakh units in Q1 2024.

 

"MMR and Pune accounted for 51% of the total sales, with MMR seeing a 26% yearly drop and Pune a decline of over 30%. At 49%, Hyderabad saw the highest annual drop in sales, while Bengaluru had the lowest decline at 16%," said Anuj Puri, Chairman - ANAROCK Group.

 

New launches across the top 7 cities remained above the one lakh mark but saw a 10% yearly decline – from approx. 1,10,865 units in Q1 2024 to approx. 1,00,020 units in Q1 2025. 

 

"Notably, MMR and Bengaluru saw the maximum new supply in Q1 2025, accounting for 52% of the total new launches across the top 7 cities," adds Puri. "While MMR saw new supply drop by 9% annually, Bengaluru saw new supply increase by 27% in this period. NCR, Bengaluru and Kolkata saw supply rise by 53%, 27% and 26%, respectively, while the other cities recorded supply declines - with Hyderabad recording the highest 55% yearly decrease," said Puri. 

 

Though new launches stayed above the 1 lakh mark in Q1 2024, unsold inventory dropped by 4% annually – from approx. 5,80,890 units by Q1 2024-end to approx. 5,59,810 units by Q1 2025-end. Among the top cities, Pune saw the highest decline of 16% in its available stock in Q1 2025. In contrast, Bengaluru saw its unsold stock rise by a significant 28% - to approx. 58,660 units - by Q1 2025-end.

 

“Rising housing prices and global headwinds like ongoing geopolitical tensions and a weak global economy, has taken their toll on India's residential market activity. These factors cascaded down into the housing market in Q1 2025," said Puri.  Average residential property prices across the top 7 cities saw a significant jump in the last one year – ranging between 10-34% in Q1 2025 - when compared to Q1 2024. This was primarily due to steep new supply additions in the luxury and ultra- luxury segment, and overall strong demand. NCR and Bengaluru recorded the highest annual price jump of over 34% and 20%, respectively.

 

New Launch Overview

The top 7 cities saw approx. 1,00,020 units launched in Q1 2025, against approx. 1,10,865 units in Q1 2024 - a 10% decline. The key cities contributing to new launches in Q1 2025 were the Mumbai Metropolitan Region, Bengaluru, Pune, and the National Capital Region, which together accounted for 80% of the quarter's supply addition.

 

MMR saw approx. 30,755 units launched in Q1 2025 – a decline of approx. 9% over Q1 2024. Over 56% of the new supply was in the sub-INR 80 lakh budget segment.

 

Bengaluru added approx. 20,855 units in Q1 2025 - a yearly rise of 27%.

 

Approx. 53% of the new supply was in the luxury segment priced > INR 1.5 Cr.

 

Pune added approx. 16,860 new units in Q1 2025 compared to approx. 18,770 units in Q1 2024, marking a 10% drop. Approx. 79% of the new supply was in the mid and premium segments (Rs 40 lakh – Rs 1.5 Cr.)

 

 NCR saw new supply increase by a massive 53% over Q1 2024, with approx. 11,120 units launched in Q1 2025 against approx. 7,270 units in Q1 2024. Notably, 70% of the new supply was in the ultra-luxury segment (priced >Rs 2.5 Cr.)

 

Hyderabad added approx. 10,275 units in Q1 2025 - a yearly decline of 55% over the same period in 2024 when approx. 22,960 units were launched. Over 70% of the new supply was in the luxury & ultra-luxury segments (priced >Rs 1.5 Cr).

 

Chennai added approx. 4,755 units in Q1 2025, marking a 35% decline. At least 81% of the new supply was in the mid and premium segments (priced within Rs 40 lakh to Rs 1.5 Cr)

 

Kolkata added approx. 5,400 units in Q1 2025, a 26% rise over Q1 2024. Approx. 59% of the new supply was in the affordable and the mid segments (priced up to Rs 80 lakh.)