Residential Property Sales Dip 19% in Q1 2025 Amid Price Surge, Economic Uncertainty
Average Housing Prices Stay Stable in Pune, NCR, Chennai, and MMR from January to March 2025: PropTiger
Mumbai | April 17, 2025 — India’s residential real estate market witnessed a significant slowdown in the first quarter of 2025, with home sales dropping by 19% year-on-year, according to the Real Insight Residential: Q1 2025 report by PropTiger.com. The decline has been primarily attributed to rising property prices and a cautious buyer sentiment driven by growing economic uncertainties.
The report covers eight major housing markets—Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR (Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), MMR (Mumbai, Navi Mumbai, and Thane), and Pune—and notes a 10% drop in new housing supply during January–March 2025. Developers are reportedly deferring project launches in response to rising costs and subdued buyer interest.
“The steep increase in prices has already begun to weigh on demand. With prices shooting up so rapidly, the impact on sales was bound to show,” said Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com. “Now, with added concerns from global trade tensions, it’s understandable that buyers are taking a more careful and conservative approach—especially when it comes to something as significant as purchasing property.”
Agarwala also noted that the Reserve Bank of India’s 25-basis-point repo rate cut in February helped limit the extent of the sales decline. Since most urban homebuyers rely on loans, the lower interest rates provided some support to demand.
Despite the overall downward trend, Bengaluru and Chennai remained resilient, recording stable or improved sales figures during the quarter. In contrast, Hyderabad, Pune, and the MMR region experienced the sharpest declines in both sales and new launches. The report indicates a broader market correction, with five out of the eight surveyed cities reporting a year-on-year decline in new housing supply—most notably in Pune, Hyderabad, and Ahmedabad.
