Housing sales slip to 17-quarter low in Q4 2025; launches fall 10%

Housing sales in the top nine cities fell 16% year on year to 98,019 units in Q4 2025, while new launches declined 10%; developers call it a phase of market realignment

Housing sales in India’s top nine cities fell 16 per cent year-on-year (Y-o-Y) to 98,019 units during the October to December 2025 period, the lowest quarterly sales figure recorded since the third quarter of calendar year 2021, according to a report by realty data analytics firm PropEquity.

 

Among the nine cities, only Delhi NCR and Navi Mumbai saw a rise in sales at 4 and 13 per cent respectively.

 

Housing supply was also affected.

 

New supplies saw a 10 per cent Y-o-Y drop from 98,664 units in Q42024 to 88,427 units in the current quarter. The fall in numbers comes at a time when interest rates have fallen, which experts believe should stir up demand in all housing segments.

   

Salil Kumar, director for marketing and business management at CRC Group, added that Delhi-NCR’s sales growth, particularly in Noida and Greater Noida, reflects rising end-user and investor interest in luxury housing and integrated mixed-use developments.

 

“With better liquidity and the expected transmission of lower home loan rates, we remain confident of sustained demand momentum in the region,” he added.

 

Traditionally, the October-December period records strong sales momentum and new launches driven by the festive season.

 

“The recent decline reflects a shift toward premiumisation in the market, as evidenced by value growth despite a contraction in volumes, a trend that has been continuing from 2024,” said Samir Jasuja, founder and CEO at PropEquity.

 

According to the report, Pune recorded the highest decline in sales at 31 per cent, from 22,940 units in Q42024 to 15,788 units in Q42025.

 

Similarly, the sales in Mumbai fell 25 per cent to 9,135 units from 12,223 units. Hyderabad too witnessed a 19 per cent decline in sales to 11,323 units from 13,902 units.

 

Despite the drop, average ticket sizes have only risen.

 

According to a report by Anarock, luxury homes in India’s top seven realty markets saw their prices rise from ~14,530 per square feet in 2022 to ~20,300 per square feet for the year to date period of 2025.

 

An industry executive told Business Standard that the buyer demand post the pandemic has gotten skewed towards large and listed developers and large-size homes at prime locations, which continues even today.

 

“Homes by branded developers come at a premium which buyers are willing to pay. Further, given that input costs have risen significantly over the last three to four years, many homes that were earlier under the affordable budget bracket have moved up to fall within the mid and premium segments,” he added

 

Developers feel that the current dip in housing sales indicates a period of market realignment rather than any structural weakness.

 

“Buyers today are more informed and cautious, placing greater emphasis on project quality, credible developers, and long-term livability. This evolving mind set has naturally slowed volume-led growth but is improving the overall health of the sector,” Neeraj K Mishra, executive director at Ganga Realty said.

 

Despite the moderation, developers added that they remain positive about the outlook for 2026, supported by a low base in 2025.

 

“Significant funds raised by developers in 2025 are expected to translate into increased project launches in 2026,” the industry executive quoted.

 

Jasuja added that improved transmission by banks of the cumulative 125 basis points repo rate reduction could lead to lower home loan rates, further supporting demand.