Housing sales in seven cities fall 14% in 2025 but value rises 6%: Report

Growth in value driven by rising demand for luxury housing, it says

Housing sales in seven major cities in 2025 declined 14 per cent from the previous year even as the value increased 6 per cent, said a report by Anarock, a real estate consultancy firm.

 

Hardening property prices, layoffs in the information technology (IT) sector, geopolitical tensions and “other uncertainties” slowed down the residential property market’s growth momentum in 2025. The growth in value was driven by demand for luxury housing, as the post-pandemic preference for larger, better homes by branded developers continued.

 

About 3,95,625 housing units worth more than Rs 6 trillion were sold in 2025, compared to  4,59,645 units valued at more than Rs 5.68 trillion in 2024. The Mumbai metropolitan region (MMR), Pune, Bengaluru, Hyderabad and the National Capital Region (NCR) accounted for 90 per cent of all sales.

   

MMR recorded the highest sales at about  1,27,875 units, down 18 per cent from 2024. Pune followed with 65,135 units sold, a 20 per cent decline. Together, these two western markets led residential sales in 2025, accounting for 49 per cent of total volumes. Chennai was the only city to see an increase in sales, up 15 per cent YoY with 22,180 units sold.

 

As many as  4,19,170  new units were launched in 2025, up 2 per cent from about 4,12,520 the previous year. MMR and Bengaluru saw the highest new supply, together accounting for nearly 48 per cent of launches during the year.

 

“2025 has been a year of broad-spectrum upheaval, including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties. The year’s trend was sales volumes stabilising at around 400,000 units across the top seven cities, but growth in overall sales value,” said Anuj Puri, chairperson, Anarock Group.

 

The share of new supply priced above Rs 2.5 crore across the seven cities rose to 21 per cent in 2025, from 18 per cent in 2024. This trend is expected to continue in 2026.

 

“The sector’s performance in 2026 hinges on several key factors, most notably rate cuts by the Reserve Bank of India and price discipline by developers. Amid the currently favourable economic outlook, further repo rate cuts leading to lower home loan interest rates could significantly revive demand,” Puri said.

 

According to Puri, average residential price growth moderated from double digits in previous years to single digits in 2025. Average prices rose 8 per cent over the year, climbing from Rs 8,590 per sq. ft. in late 2024 to approximately Rs 9,260 by the end of 2025.

 

NCR was the only market to see double-digit price growth at 23 per cent, with average prices rising from Rs 7,550 per sq ft in 2024 to about Rs 9,300 per sq ft in 2025, largely due to a higher share of premium launches. Of NCR’s total new supply of 61,775 units during the year, over 55 per cent were priced above Rs 2.5 crore.

 

Unsold inventory in the seven major cities rose 4 per cent by the end of 2025, mainly due to moderating demand and higher new supply. About 577,000 units are currently available in the primary market across these cities.

 

Hyderabad was an exception, recording a marginal 2 per cent decline in unsold stock, from 97,765 units at end-2024 to 96,140 units at end of 2025, amid restricted new supply. MMR saw a marginal 1 per cent drop in unsold inventory, while Bengaluru recorded a sharp 23 per cent increase.