Real Estate in India: Sales Drop by 28% in Q1 2025, but Luxury Segment Drives Price Increase
Real Estate in India: Sales Drop by 28% in Q1 2025, but Luxury Segment Drives Price Increase
The Indian housing market experienced a significant slowdown in the first quarter of 2025, with sales in the top seven cities dropping by 28% compared to the same period in 2024. According to Anarock, a real estate consultancy, this decline can be attributed to rising prices and global economic uncertainties.
The report revealed that 93,280 units were sold in Q1 2025, a stark contrast to the 130,170 units sold during the same period in 2024. The cities included in the analysis were Mumbai Metropolitan Region (MMR), Bengaluru, Pune, National Capital Region (NCR), Hyderabad, Chennai, and Kolkata.
Despite the decline in sales, average residential property prices in these seven cities saw a notable increase, ranging from 10% to 34% in Q1 2025. This surge was primarily driven by new launches in the luxury and ultra-luxury segments, coupled with sustained demand. Notably, NCR and Bengaluru experienced the most significant annual price jumps, exceeding 34% and 20%, respectively.
“MMR and Pune together accounted for 51 per cent of the total sales, with MMR recording a 26 per cent drop compared to the previous year, while Pune saw a sharper decline of over 30 per cent. Hyderabad witnessed the highest annual fall in sales at 49 per cent, whereas Bengaluru had the smallest decrease at 16 per cent,” said a real estate expert.
New property launches across the seven cities crossed the 100,000 mark but still saw a 10 per cent annual decline, falling from around 1,10,865 units in Q1 2024 to approximately 1,00,020 units in Q1 2025.
“Notably, MMR and Bengaluru saw the highest number of new launches in Q1 2025, contributing 52 per cent of the total supply across the top seven cities,” the expert added.
New housing supply witnessed mixed trends across the cities. NCR, Bengaluru, and Kolkata saw substantial growth, with increases of 53%, 27%, and 26%, respectively. In contrast, Hyderabad experienced the most significant decline in new supply, dropping by 55%. MMR also saw a decrease of 9%.
Unsold inventory levels showed a slight decrease overall, dropping by 4% from approximately 580,890 units in Q1 2024 to 559,810 units in Q1 2025. Pune experienced the most significant decline in available stock, dropping by 16%. However, Bengaluru saw a notable increase in unsold inventory, rising by 28% to around 58,660 units.
“However, increasing housing prices, combined with global challenges like ongoing geopolitical tensions and a weak global economy, have weighed heavily on India’s residential market. These factors carried over into the housing sector in Q1 2025,” said the expert.
